Winbond Electronics Chairman Arthur Chiao warned that Taiwan's business sector is grappling with a green energy supply shortage due to the lack of mechanisms for managing surplus power. Companies are forced to buy enough renewable energy to meet peak summer demand, but in the winter, when production soars, the excess goes to waste. He attributed this inefficiency to Taiwan Power Company's (Taipower) long-running financial losses, which have distorted electricity pricing policies. Chiao urged reforms to improve Taiwan's energy structure and regulatory framework.
He explained that wind power generation struggles during the summer, but surges in winter, leading to a surplus of nearly 1.8 times higher than what is normally needed. While businesses are required to meet RE100 renewable energy targets, the surplus transforms that into RE380 during peak periods. To make matters worse, green energy developers often hand over excess winter power to Taipower for free. Rigid contracts between green energy developers and users lock companies into fixed purchasing models, forcing them to overpay for renewable power in the summer and absorb unusable energy in the winter.
In contrast, other countries allow power companies to blend excess renewable energy with traditional sources, adjusting prices and preventing businesses from having to shoulder unnecessary costs. Taiwan's lack of such mechanisms discourages companies from purchasing sufficient green energy. Chiao called on the government to address this issue by helping large electricity consumers manage surplus power through a more flexible system.
Chiao also stressed the importance of localizing wind energy production to drive economic growth and reduce maintenance costs. He argued that had Taiwan focused on building local capabilities in earlier rounds of wind power tenders, reliable domestic suppliers would've been established at this point. By the third phase round, companies wouldn't need to be forced to use local vendors. However, Chiao believes that early-stage localization remains vital, as Taiwan will continue to rely on wind energy for decades.
He further suggested that Taipower take a more proactive role in green energy development, criticizing Taiwan's sluggish progress and distorted electricity pricing, which he said is unfair to businesses.
