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The encyclopedia · Engineering & Operations · Strategic decision · 1999–2021

Taiwan's Lungmen nuclear plant cost NT$300B — and never generated a watt

Taiwan spent NT$300B building a two-reactor nuclear plant over 20 years. Politics, safety disputes, and a failed referendum left it mothballed with zero output.

Taiwan Power Company (Taipower / 台灣電力公司) · 2021-12-18

What happened

The Lungmen Nuclear Power Plant (also known as the Fourth Nuclear Power Plant) was Taiwan's most expensive infrastructure project. Proposed in 1978 and approved in 1996, it was designed to house two 1,350 MW Advanced Boiling Water Reactors (ABWR) built by General Electric. Construction began in 1999 with an expected completion date of 2004 and a budget that would eventually balloon to NT$280–300 billion (US$9.4–10 billion).

The project was plagued from the start by political turmoil. In October 2000, newly elected President Chen Shui-bian of the anti-nuclear Democratic Progressive Party (DPP) ordered construction halted by executive order. The halt lasted 111 days but caused a 576-day delay due to contract disruptions. The order was later ruled unconstitutional, but the damage was done — the project had lost momentum and become a political football that would be kicked between administrations for two decades.

Construction resumed but never recovered. Taipower split procurement among multiple vendors instead of using a single architect-engineer, creating coordination problems. The Atomic Energy Council fined Taipower in 2008 and 2011 for completing design changes without GE's prior approval. Rusty rebar and potential seawater seepage were discovered after the 1999 earthquake. By 2014, the cost had reached nearly NT$300 billion, and neither unit had generated a single kilowatt.

A 2014 referendum to decide the plant's fate was rejected for confusing language. A 2021 national referendum to restart construction was narrowly rejected. Taipower began shipping unused fuel rods back to the United States in 2018, making restart even more difficult — the company stated it would take at least six years and billions more to bring Unit 1 online. The plant remains mothballed, a US$10 billion monument to political gridlock and project mismanagement.

Why it happened

  • The plant was caught between two irreconcilable political forces — one for nuclear, one against — for 20 years, with each administration reversing the previous one's decisions
  • Taipower split procurement among multiple vendors instead of using a single architect-engineer, creating coordination failures and design disputes
  • The Atomic Energy Council fined Taipower for making design changes without GE's approval, adding regulatory delays to an already stalled project
  • Two referendums failed to resolve the plant's fate — one rejected for confusing language, the other narrowly rejecting restart — leaving it in permanent limbo
What it costNT$300B spent, zero electricity generatedcostly

The lesson

A US$10B infrastructure project cannot survive 20 years of political reversals. When every administration reverses the previous one's nuclear policy, the project becomes a monument to indecision.

Aftermath

Lungmen remains mothballed as of 2026. Unit 1 is complete but has never operated; Unit 2's construction was frozen. Taipower ships unused fuel rods back to the US, making restart increasingly impractical. The plant's annual maintenance cost is NT$1.3 billion. Taiwan completed its nuclear phase-out on May 18, 2025, shutting down the final reactor at Maanshan, making it politically unlikely that Lungmen will ever operate. The project stands as one of the most expensive infrastructure failures in Taiwanese history.

Sources

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    Somewhere, someone solved the problem this company failed at. 2nd Opinion →