Energy Management Act Amendment Mandates Energy Storage or Self-Generation for Large Users

The Legislative Yuan passed amendments to the Energy Management Act, requiring newly established or expanded large energy users to install either self-generation or energy storage equipment. Violators face fines of up to NT$750,000. The Ministry of Economic Affairs stated this measure will enhance corporate energy autonomy, alleviate grid pressure, and address rising electricity demand from AI and electronics industries.

Editorial Team8/31/2026Updated 8/31/2026

Key Amendments and Penalties

The Legislative Yuan passed amendments to the Energy Management Act on August 21, mandating that newly established or expanded large energy users must install either self-generation or energy storage equipment. Violators will face fines ranging from NT$150,000 to NT$750,000, with penalties applied per violation. The Ministry of Economic Affairs (MOEA) stated that the amendments aim to address the rapid growth of high-energy-consuming industries such as AI data centers and electronics, referencing international practices of corporate self-supplied power to enhance energy supply resilience and reduce the burden on public grids.

According to the amendments, the requirement applies to energy users newly established or expanded to a specified capacity, who may choose between installing self-generation or energy storage equipment. The MOEA emphasized that details such as applicable capacity thresholds, installation deadlines, equipment scale, and types will be specified in subsequent regulations by the central competent authority. The MOEA plans to expedite the revision of these regulations and continue communicating with industry stakeholders.

Surging Electricity Demand from AI and Electronics Industries Highlights Corporate Energy Storage

The MOEA noted that with the booming development of the AI industry, AI data centers and large electronics users across Taiwan are being established, significantly increasing demand on the power grid. To ensure stable electricity supply, the amendments require businesses to strengthen their own energy supply capabilities, making energy storage equipment a key option for enhancing corporate energy autonomy. However, industry observers believe the effectiveness of the new regulations in driving demand for corporate energy storage will depend on the specifics of the forthcoming regulations.

Several domestic companies have already actively entered the corporate energy storage market. Hongde Energy’s subsidiary, Star Power, launched the "ETF5050 Behind-the-Meter Energy Storage Sharing Program," which reduces initial setup costs for businesses through a shared model and allows them to participate in revenue-sharing from power trading. Shengda Group targets high-energy-consuming industries such as semiconductors and textiles, offering integrated solutions that include energy storage equipment, energy management systems (EMS), and maintenance services.

Industry Players Showcase Technical Capabilities and Track Records

Taiwan Powin, a subsidiary of Cloud Leopard Energy, has cumulatively deployed over 1 GWh of energy storage projects and possesses full-turnkey EPC (Engineering, Procurement, and Construction) capabilities along with an in-house developed energy management system (EMS). Delta Electronics focuses on large-scale energy storage system solutions, integrating liquid-cooled power conditioning systems, battery energy storage systems, and the DeltaGrid intelligent energy management platform. These technologies have been applied in large-scale energy storage projects, such as those for Guantian Steel.

In addition to targeting large electricity users, the amendments include revisions to 15 other articles, covering measures such as public disclosure of energy sales statistics, strengthening local governments' energy conservation inspection capacities, and increasing penalties for violations. The MOEA stated it will continue to promote related supporting measures to ensure the effective implementation of the amendments and facilitate energy transition and industrial upgrading.

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