The green energy market continues to expand rapidly, with significant developments in the first half of 2024. Green energy trading saw an annual increase of 40%, accompanied by substantial growth in new T-REC projects.
The number of electricity retailers has surged to 75, with businesses actively competing for trade opportunities in photovoltaic and offshore wind power sectors. To adapt to evolving trading mechanisms, green energy wheeling platforms are increasingly focusing on enhancing ICT techniques and addressing the growing demand for skilled personnel.
According to BSMI's compilation, T-REC trades totaled approximately 1.04 million in the first half of 2024, with green energy trade reaching 1.04 billion kWh, representing an annual increase of 41%. The Ministry of Economic Affairs (MOEA) projects Taiwan's green energy generation to reach 35.6 billion kWh in 2024, indicating a robust growth trajectory for the sector.
Notably, the Type-3-to-1 conversion in photovoltaic projects has significantly contributed to the expansion of the green energy market. MOEA data shows that the number of new projects in the first half of 2024 has already surpassed the total for the previous year, with 531 new projects added between January and August. This rapid increase in projects underscores the growing momentum in the green energy sector.
Regarding the Type-3-to-1 policy, HD Renewable Energy reported that it has integrated about 400MW. The company will begin wheeling green energy for 13 Type 3 power plants from July 1, 2024, with T-RECs transferred to 23 users. This achievement sets a new industry speed record and creates a win-win situation for power suppliers, electricity retailers, and users, demonstrating the policy's effectiveness in stimulating market growth.
Jason Chou, HD Renewable Energy's general manager, highlighted that with the addition of approximately 100MW in self-generated power, the current capacity under construction would be 350MW. The company expects to reach about 300MW of construction volume annually in the future, significantly boosting green energy sales performance. This ambitious target reflects the company's commitment to expanding its green energy portfolio and meeting growing market demand.
HD Renewable Energy's subsidiary, Star Exchange, has made significant strides in the market, having signed contracts totaling 15.5 billion kWh, equivalent to about 700-800MW. Chou emphasized the company's strategy of connecting manufacturers and users through a platform, with Star Exchange now poised to take the lead in the electricity retailing platform. The company's main advantages include its sufficient supply of land and extensive client base, positioning it favorably in the competitive landscape.
The increasing demand for green energy is further fueled by international semiconductor supply chains planning to establish data centers in Taiwan. Chou mentioned frequent contact with AI supply chains and ongoing negotiations with two to three US businesses. However, construction dates and purchase quantities remain undecided, as clients need to establish data centers before making evaluations. This potential influx of high-energy consumers presents both opportunities and challenges for the green energy sector.
Electricity retailers stock up on green energy
Currently, top local electricity retailers including Star Exchange, J&V Energy Technology's subsidiary, Greenet, Shinfox Energy's subsidiary, Foxwell power, and Taiwan Cogeneration Corporation have all prepared a good quantity of green energy through offshore wind power and photovoltaic projects, hoping to ease up the industry's demand for green energy through expanding supply.
Within the electricity retailing industry, aside from a few companies that have created one-stop services for both power generation and retailing, industry experts pointed out that companies that do not have such services have to ensure quality in matching, balancing, and deployment in the supply-demand process to lower friction and decrease excess power.
As HD Renewable Energy explores overseas electricity retailing markets, Chou pointed out that Taiwan's current system differs from international markets in terms of supply-demand balance requirements. In Taiwan, electricity retailing does not currently need to consider supply-demand balance, as this is managed at a systemic level. Consequently, the company's overseas electricity retailing plans focus more on the demand for ICT software personnel, recognizing the critical role of technology in market expansion.
Experts predict that beyond buying and selling electricity, future operations will require more ICT-related personnel for supply coordination mechanisms. Artificial Intelligence (AI) is expected to play a crucial role in allocating supply balance and deployment, enhancing the precision of electrical retail services. This shift towards more technologically advanced solutions underscores the evolving nature of the electricity retail sector and its increasing reliance on digital innovations.
