Taiwan-based HD Renewable Energy (HDRE) is expanding its business scope from energy storage and solar energy to EV charging. Jason Chou, HDRE's general manager, said the company will establish joint ventures in Taiwan with local partner Shihlin Electric &Engineering. The pair plans to bring their charging venture to Japan.
HDRE is joining the 2024 E-Mobility Taiwan exhibition from April 17 to April 20 for the first time with Shihlin Electric.
Taiwan saw its EV sales reach 24,726 units in 2023, up 53.7% from the previous year. More than 58,600 EVs have been registered on the island. According to HDRE's estimates, the annual sales volume will rise to between 110,000 and 180,000 cars in 2030, with a total registration of 520,000 to 710,000 EVs. Battery EVs' penetration rate will stay between 30% and 40%.
Since Taiwan aims to stop selling gasoline cars in 2040, the government and industries have been scaling the EV market. Improving the availability of charging infrastructure can mitigate drivers' range anxiety and benefit EV sales.
Chou said that based on EV sales volume estimates, Taiwan's charging infrastructure market is expected to reach between NT$14.6 billion (US$44.87 million) and NT$20 billion by 2030. Revenues generated by charging fees will likely achieve between NT$9.6 billion and NT$13 billion, he added.
Chou announced that HDRE will set up two joint ventures with Shihlin Electric in Taiwan to collaborate on production and sales channels. They have formed a three-year plan with Shihlin Electric focusing on manufacturing products and HDRE handling sales.
The two companies will also apply the behind-the-meter photovoltaic (PV) energy storage and charging solutions to different scenarios. They plan to expand to Japan and partner with large local enterprises to develop more applications for their products.
As for the charging market in Japan, Chou said EV adoption moves slower in Japan than in Taiwan. HDRE will team up with Shihlin Electric, taking advantage of hardware and software integration to seize business opportunities in the country. The duo has engaged with Japanese land owners, large distributors, and property developers, aiming to set specific sales targets within six months.
As Japan still has limited EVs, Chou said the venture will first increase capital expenditure and experience challenges brought by capital, time, and techniques within a short time. The growth of the charging business will depend on the number of EVs.
HDRE formed a subsidiary, Star-EV-Charge, in 2021 to focus on establishing and operating charging stations, selling and maintaining charging equipment, and providing other services. Star-EV-Charge has cooperated with FamilyMart in Taiwan to deploy 20 120kW fast-charging EV stations.
Star-EV-Charge aims to set up 248 charging stations in Taiwan this year and enhance its network across the island. The company targets at least 1,000 charging points by 2026.
