Taiwan to Require Big Power Users to Build Own Energy Facilities
(Bloomberg) -- Taiwan will require big power consumers to install generation and energy storage facilities, in a bid to manage an expected surge in demand for electrification in the high-tech manufacturing hub.
Authorities approved amendments to the island’s Energy Administration Act aimed at enhancing the self-sufficiency of major electricity consumers as well as reducing their reliance on the grid, according to a report by Taipei-based Central News Asia on Thursday. The goal of these measures is to strengthen demand-side management and improve efficiency, the report said, citing Premier Cho Jung-tai.
The amendment also mandates the disclosure of information on power sales, such as consumption by industries and regions, to facilitate the planning of fuel-saving measures in the future, according to the report.
The move highlights the government’s efforts to adapt to increasing electricity demand, especially as the island houses some of the world’s biggest chipmakers. Government-owned Taiwan Power Co. expects demand to climb by more than 5 gigawatts through 2030, mostly driven by semiconductor manufacturing and the rise in artificial intelligence and data centers.
It also comes as the import-reliant island scrambles to shore up energy security against a backdrop of the Middle East war, which has upended global fuel flows. Taiwan imports around 96% of its energy, with liquefied natural gas accounting for roughly half of its power generation.
The island has been able to avoid a crippling fuel shortfall only by getting expensive supply from the spot market, where prices are more than double that of long-term contracts, and estimates it has enough natural gas through September.
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