Taiwan Industry Group Urges Limits on New Energy Generation Mandates

Taiwan's industrial sector is pushing back against proposed amendments to the Energy Management Act that would mandate energy users with significant electricity contracts to install self-generation and energy storage systems. The General Chamber of Commerce (GCC) argues that these requirements should be limited to new factory expansions or entirely new investments, not existing operations.

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The amendments to the Energy Management Act requiring the installation of self-generation and energy storage equipment should only apply to factory expansions or new investment projects.

The proposed changes, currently under review in the Legislative Yuan, aim to increase energy self-sufficiency among major energy consumers and reduce reliance on the national grid. The GCC estimates that around 400 companies in sectors like semiconductors, optoelectronics, steel, petrochemicals, and AI data centers, which use over 5MW of power, would be affected.

Citing the principle of non-retroactivity and the lack of sufficient space in existing factory sites, the GCC's primary recommendation is to apply the new rules only to "new construction, expansion, or renovation" projects. They also highlight current safety concerns and insurance difficulties surrounding energy storage systems, suggesting a phased approach as technology matures. The chamber proposes modifying the requirement from "self-generation and energy storage devices" to "self-generation or energy storage devices" to offer businesses more flexibility.

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Due to safety concerns with current energy storage technology and insurance difficulties, it is advisable to proceed gradually and require large energy consumers to install storage devices only after the technology matures.

Furthermore, the GCC advocates for including "alternative solutions" beyond physical installations. These could include paying a fee, purchasing renewable energy certificates, or participating in demand response programs. The chamber believes that modifying Article 10, Paragraph 4 of the Energy Management Act to include "self-generation devices, energy storage devices, or other alternative solutions" for new energy users would balance energy independence goals with industrial development. They also emphasize the need for thorough communication with industry stakeholders when the Ministry of Economic Affairs drafts subordinate regulations to mitigate impacts on business operations.

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New energy users whose electricity contract capacity reaches a certain level should be required to install self-generation devices, energy storage devices, or other alternative solutions within a specified period.