AI Computational Demand Drives Electricity Growth Forecast Up to 2.5%
Premier Cho Jung-tai stated on August 26 that in response to the rapid growth in demand for AI and high-performance computing services, the government has raised the average annual electricity demand growth forecast for 2035 from 1.7% to 2.5%. Cho noted that the Ministry of Economic Affairs is still reviewing relevant data, and the forecast may be further revised. To ensure stable power supply, the government will advance energy transition through three key directions: sufficient power supply, enhanced grid resilience, and diversified energy sources.
Cho emphasized that the development of AI technology has significantly increased electricity demand, requiring proactive government measures. The Ministry of Economic Affairs and Taiwan Power Company (Taipower) have launched a NT$564.5 billion grid resilience enhancement project to upgrade the power grid, improve resistance to external disruptions, and ensure stable electricity supply. However, the specific execution timeline and funding allocation details for this plan have not yet been disclosed.
Microgrid Deployment Becomes a Priority to Enhance Regional Energy Security
To strengthen energy resilience, the government will accelerate the deployment of regional microgrids and independent power systems. Cho stated that microgrids, combined with energy storage systems, can maintain regional autonomous power supply during large-scale grid anomalies, becoming increasingly important for national defense, civilian use, and industrial applications. The government will establish independent power systems in phases across different regions, supported by sufficient energy storage equipment to enhance grid flexibility.
Delta Electronics has successfully connected over 10 energy storage systems to the grid in Taiwan, including a 5 MW system at its Taoyuan Pingzhen plant, which has been integrated into Taipower’s frequency regulation and spinning reserve auxiliary services. Delta also promotes microgrid solutions, integrating renewable energy, energy storage, and energy management systems (EMS) to support rapid switching between grid-connected and off-grid modes. TPPower has cumulatively deployed over 1 GWh of energy storage projects, while Star Power, a subsidiary of Hongde Energy, has put 60 MW of front-of-the-meter energy storage into operation. Through the ETF5050 behind-the-meter energy storage sharing program, Star Power expects its cumulative online capacity to reach 360 MW by the end of this year.
Companies Compete for Energy Storage Opportunities as Solar and Wind Power Continue to Expand
As microgrid deployment accelerates, industry experts anticipate that demand for energy storage equipment will extend to integrated applications such as EMS, power conversion equipment, and energy dispatch systems. Cho noted that as of June this year, Taiwan’s cumulative solar power installation capacity has grown substantially compared to 2016. The government will continue to promote ground-mounted and rooftop solar installations, combining them with energy storage systems to improve power generation efficiency. In offshore wind power, the Ministry of Economic Affairs plans to add 15 to 18 GW of developable capacity in the future. The development of Zone 3-1 and 3-2 continues, while planning for Zone 3-3 has commenced.
The government emphasizes that the growth in AI computational demand is driving electricity demand, making grid resilience and microgrid deployment key priorities for the next phase. Despite clear policy directions, details such as the execution timeline for the NT$564.5 billion grid enhancement project, the practical application effects of microgrids, and the completion timeline for additional offshore wind capacity remain to be announced. Companies continue to monitor government policy details to assess investment and deployment strategies.
