Overview

Taiwan relies on imports for more than 97.7 percent of its energy needs. The island is currently implementing an energy transformation with a goal of denuclearizing and achieving a power generation portfolio of 50 percent gas, 27 percent coal, 15 percent renewable, and 8 percent “other” by 2025. To implement the energy transformation and a nuclear-free homeland policy, Taiwan is building new liquified natural gas receiving terminals, expanding natural gas power generation fleets, developing renewable energy with a focus on solar and offshore wind power generation, and beginning to decommission the island’s nuclear power plants.

                                                            Unit: USD thousands

Leading Sub-Sectors

• Combined-cycle natural gas-fired power generation equipment
• Nuclear decommissioning and decontamination services and technology
• Liquified natural gas receiving tanks and regasification construction services
• (See Figure 1 below for more details about the above three leading segments)
• Raw Materials/Energy Resources

• Natural gas
• Low sulfur content coal

• Renewable Energy

• Offshore wind turbines and floating platforms
• Solar panels
• Power transmission, substation, grid connection technology and equipment
• Energy efficiency products
• Geothermal and ocean energy power equipment
• Battery storage technology and equipment
• Emission control products such as CO2 sequestration technology

• Smart Grid and energy storage technology and products
• Carbon capture, storage, and utilization equipment and technology

Opportunities

Taiwan Power Company (TPC), CPC, and independent power producers (IPPs) are the main source of procurement in Taiwan. TPC, a state-owned trading enterprise, owns the national grid. In the coming years, its procurement will focus on replacing coal-fired and oil-fired generators with LNG combined cycle gas turbines and smart grids. TPC will replace oil-fired generators of Hsieho Power Plant in Keelung with LNG combined cycle gas turbines. Some IPPs with coal fire generators, such as Formosa Mai-liao Power Plant, are doing the same. Their demand for combined-cycle gas turbines will increase as well.

Renewable energy is mostly provided by IPPs. The most significant emerging demand will be floating platforms for offshore wind turbines with Taiwan’s offshore wind projects moving toward deeper water (beyond 50-60 meters in depth). In deeper water, floating platforms will be more cost-efficient than fixed platforms. In addition, Taiwan also provides preferential tariff treatment to encourage the development of geothermal and ocean energy. Taiwan so far has no geothermal or ocean power equipment supply chains, which offers great opportunities for U.S. companies to sell such equipment to Taiwan.

To support the expansion of LNG power generators in Taiwan, CPC, a state-owned enterprise and the main oil and LNG supplier in Taiwan, is expanding LNG receiving and storage infrastructure in Taiwan. It is expected that CPC’s demands for LNG storage tanks and EPC (Engineering, Procurement, Construction) construction services for LNG infrastructure will remain high in the coming years. TPC Hsieho Power Plant and Formosa Mai-liao Power Plant will have similar demand for LNG receiving and storage infrastructure.

The National Development Council published Taiwan’s Roadmap to Net Zero Carbon Emission by 2050 in March 2022. According to the Environmental Protection Administration, Executive Yuan, Taiwan’s CO2 emissions are approximately 265 million MT per year. The energy sector is the main contributor to CO2 emissions. To reduce carbon emissions, the Taiwan energy sector will need carbon sequestration equipment and storage sites. Once storage sites in Taiwan are determined, the demand for carbon sequestration, storage, transportation, and EPC construction for CO2 storage will pick up quickly.

Taiwan’s 2019 Government Procurement Act (GPA) requires all government procurement entities and state- owned companies to publicize all procurements valued over NT$1 million ($30,000) on the Taiwan authorities’ e-procurement website. As a state-owned enterprise, all procurements released by the Taiwan Power Company must be submitted to this website.

Installed Capacity

Remark: According to the MOEA Report of the assessment to energy referendums in May, 2021

Source: Taiwan Power Company

Resources

U.S.’ firms wishing to learn more about the electrical power equipment market and expanding export opportunities to Taiwan are encouraged to contact CS Taiwan at office.taipei@trade.gov