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Taiwan's energy shift faces grid challenges amid global net-zero push

Ninelu Tu, Taipei; Vyra Wu, DIGITIMES Asia 0

Credit: DIGITIMES

The global shift toward clean energy, driven by the need to address extreme climate events, is reshaping both the power and automotive industries. As the push for net-zero emissions gains momentum, traditional automakers are pivoting toward electric vehicles, while power grids are transitioning to low-carbon systems. Taiwan, aligning with global energy targets, has revised its goals to ensure renewable energy accounts for 15% of the country's supply by 2025, increasing to 20% by 2026.

However, Taiwan faces unique challenges. Its dense population and limited land space constrain renewable energy deployment. Additionally, the intermittent nature of renewables complicates efforts to diversify energy sources, even as the government prioritizes expanding renewable capacity. Beyond scaling up renewables, overhauling grid infrastructure and leveraging technology to minimize energy loss have become key priorities for the country's energy transition strategy.

Delta Energy, a major player in the sector, sees the evolution from traditional grids to smart grids as an essential step. This shift would not only decentralize the existing power grid through microgrid installations—boosting resilience—but also incorporate digitalization, integration, and bi-directional power flow to address growing electricity demand.

According to industry insiders, smart grids offer the potential to improve power management, enhance reliability, and boost efficiency, while allowing users to feed excess electricity back into the grid. Decentralized microgrids could support one another, increasing energy efficiency and strengthening grid stability through flexible, adaptive regulation.

Experts also note that as battery capacity increases, electric vehicles (EVs) could effectively serve as energy storage systems (ESS). When integrated with solar power and energy management technologies, EVs could charge during periods of abundant sunlight or low electricity prices and discharge during peak price periods, reducing household energy costs and providing emergency backup power when needed.

Delta Energy believes that, once regulations catch up, bi-directional transmission between EVs and the grid will enable virtual power plants to aggregate household energy into unified units. These units could feed surplus power back into the grid or offer support during peak demand. Through vehicle-to-grid (V2G) technology, virtual power plants would be able to mobilize energy resources more flexibly, helping balance supply and demand while optimizing grid performance.

Smart grids, equipped with energy storage systems, could also smooth fluctuations in energy supply, allowing for greater integration of renewables and accelerating the transition toward a low-carbon future.

As global electricity consumption continues to rise, grid upgrades are becoming a critical priority—not just in Taiwan but worldwide. Companies like Teco, Tatung, Shihlin Electric, and Delta Electronics are positioning themselves to capitalize on these opportunities, competing for market share in the evolving energy landscape.