Taiwan has pledged to invest NT$2 trillion (US$63.5 billion) to achieve net zero.
Taiwan, in its pursuit of energy transition and sustainable development, is spearheading an array of initiatives, including robust power grid fortifications and the implementation of 12 pivotal strategies for net-zero transformation. The country is planning to invest over NT$2 trillion in the infrastructure needed to get there.
Greener pastures
In response to the relentless expansion of the green energy market, traditional heavy electrical equipment stalwarts such as are diversifying into novel markets. Teco, Chung-Hsin Electric and Machinery Manufacturing, Shihlin Electric and Engineering Corporation, Allis Electric, Fortune Electric, and Tatung are all leveraging their established industrial foothold and moving in search of greener pastures.
Other companies are following suit. Shinfox Energy, Arch Meter, and Delta Electronics are strategically positioning themselves to capitalize on energy transition opportunities.
Market insiders say that propelled by government policy, green energy in Taiwan is poised for sustained growth. This means increased demand across the spectrum, encompassing renewable energy generation, transformative technologies, energy storage solutions, and energy-efficient applications.
Moreover, evolutions in the supply and distribution systems, including substation overhauls, are expected. The present structural adjustments within Taiwan's electrical grid are attributed to the escalating prevalence of green energy and the persistent surge in overall electricity demand, culminating in significant commercial prospects for equipment vendors.
Out with the old
Notably, the aging electrical grid infrastructure in Taiwan presents escalating risks for the evolving power landscape and diverse user demands. Taiwan Power Company (Taipower) is expediting the phased replacement of outdated equipment, and advancing the Grid Resilience Strengthening Construction Plan to bolster power supply stability.
The need for replacements, structural augmentations, and upgrades geared toward enhancing transmission, distribution, and energy efficiency represent offer business opportunities for stakeholders.
In addition, the proportion of green electricity generation will continue to increase. For renewable energy sources such as wind and solar power, pre-processing is required before connecting to the grid. The related heavy electrical equipment, such as transformer stations and voltage boosting stations, also needs to be updated and upgraded to reduce losses in the power transmission process.
The green dividend
Aligning with the needs of green energy transportation, Taipower's strategy encompasses the construction of two 345KV ultra-high voltage substations by 2032. The construction will open up a pivotal battleground for industry contenders.
Beyond the power grid, entities such as Shinfox Energy, Tatung, and Teco, are developing their business scope from engineering, procurement, and construction (EPC) of renewable energy projects to encompass the full gamut of operational and maintenance aspects, including participation in electricity trading platforms. Shinfox Energy's comprehensive service is aimed at the needs of its customers and combines renewable energy generation, energy conservation, energy storage, and green energy trading.
In the broader context of global opportunities in the green energy sector, industry players exhibit a fervent commitment to expanding their footprint in overseas markets. The United States, grappling with analogous imperatives such as power infrastructure obsolescence, electrification imperatives, and a burgeoning interest in renewable energy, emerges as a focal point.
Similarly, Southeast Asian nations, confronted with the imperative of energy transition, beckon as nascent markets of significant potential. Companies like Tatung and Fortune Electric harbor optimistic sentiments concerning the developmental prospects within the Southeast Asian market.
