Taiwan's energy storage market is experiencing turbulence as several recent projects have been paused, raising concerns among local players about future growth. However, international energy storage leaders like Fluence and QPO Energy remain optimistic about the global outlook, highlighting strong demand across Europe, the US, and the Asia-Pacific region. The US market, in particular, benefits from the Inflation Reduction Act (IRA), prompting calls for Taiwan's supply chain to capitalize on emerging opportunities abroad.
Fluence's APAC Director Bo Hesselbaek notes that Taiwan's storage market faces hurdles from potential oversaturation, high setup costs, and financing difficulties. Although Taiwan has a power trading platform, market depth remains limited, and insufficient support services could accelerate market saturation. Hesselbaek also points out that Taiwan's 11% renewable energy share, targeted to reach 30% by 2030, poses a significant challenge, especially as grid reliability and capacity must be assured.
Hesselbaek identifies two pressing issues: the need for clear 2030 storage goals and building investor trust to reduce costs. Lessons from Australia, the United Kingdom, and Japan could provide useful strategies. He also warns that Taiwan's concentrated renewable energy sources—such as solar and wind—demand careful management, with battery storage playing a pivotal role in ensuring stability.
QPO Energy Chairman Joseph Lu, viewing the market from a US perspective, underscores the IRA as a once-in-a-generation opportunity for Taiwanese firms. The IRA offers a 30% federal tax credit on storage products, alongside additional state-level subsidies, in stark contrast to Taiwan's limited incentives. Lu, who previously founded Powin Energy, notes that his latest venture, QPO Energy—with Yulon Motors as a key partner—aims to grow in the US market, given both federal support and tariffs on Chinese imports that reduce competition from China.
Projections indicate rapid growth in the US storage market, with residential storage expected to outpace grid storage by 2028. The US government's focus on breaking China's supply chain dominance could provide Taiwan with a strategic advantage, positioning Taiwanese companies to thrive in an increasingly competitive landscape.
