Teco Electric & Machinery has won an open bid at NT$2.6 billion (US$91.2 million) for setting up an energy storage system with an installed capacity of 60MW for state-run Taiwan Power Company (Taipower), with construction to begin in April 2022 and be completed in 2023, according to Teco.
In line with 2025 renewable energy targets set by the Taiwan government, Taipower has planned to set up energy storage systems with a total installed capacity of 160MW at its 29 extra-high-voltage transformer substations around Taiwan, and the 60MW one to be constructed by Teco is the largest.
Teco stepped into energy storage in 2015 and has cooperated with US-based energy storage solution provider Fluence to set up energy storage systems in Taiwan since 2020.
Teco has won EPC (engineering, procurement, construction) projects from developers of offshore wind farms to set up onshore transformer substations since 2020, with cumulative contract installation capacity reaching 2GW for a market share of 35%. An onshore substation with an installed capacity of 100MW has been completed and connected with Taipower's power supply systems.
According to Taiwan Energy Storage System Industry Promotion Alliance, the Taiwan market value for energy storage systems is estimated at NT$200 billion, with the market demand mostly coming from Taipower in order to provide regulation and spinning reserve ancillary services, large power users required to set up renewable energy generating capacities take up at least 10% of contract capacities for their power demand, and Taiwan-based supply chain makers for RE100 international enterprises, residential communities, and various buildings, and micro-grids in offshore islands.
In addition to Teco, Sinfox Energy together with its subsidiary Foxwell Power recently completed a 7MW energy storage system for Taipower to provide AFC (automatic frequency control) regulation reserve ancillary services. Sinfox has made long-term planning for setting up energy storage systems with a total installed capacity of 100MW in Taiwan, company president Wilson Hu said.