The Ministry of Economic Affairs has announced a significant subsidy program aimed at encouraging large electricity users in industrial parks to install post-meter energy storage systems. This initiative, designed to enhance the resilience of their power supply, will offer a total of NT$5 billion (approximately US$160 million) over four years, with NT$1.5 billion allocated for the first year alone.
The subsidy will provide NT$5 million per megawatt-hour (MWh) of energy storage capacity, with a maximum individual project grant of NT$50 million. To qualify for the subsidy, participants must use domestically produced batteries. The program is expected to officially launch next year.
Post-meter energy storage systems are typically installed within factory premises to serve as emergency backup power sources or to manage peak electricity usage, thus saving on energy costs. However, the high installation costs have hindered widespread adoption in Taiwan.
The Ministry plans to kick off this four-year subsidy program next year, with each eligible site limited to a maximum of 10 MWh. This means that the highest subsidy for a single project could reach NT$50 million. Currently, the Energy Agency is finalizing the guidelines for the subsidy and plans to begin accepting applications by the end of the year.
The Executive Yuan approved this initiative on August 28, with an annual budget of NT$1.5 billion for the first year and subsequent budgets of NT$1.5 billion, NT$1 billion, and NT$1 billion for the following three years, totaling NT$5 billion.
According to Deputy Director Wu Chih-Wei of the Energy Agency, while pre-meter energy storage systems have reached a certain level of development, the focus will now shift to promoting post-meter systems. This is expected to strengthen users’ power supply resilience against voltage and frequency fluctuations in the grid. The primary target groups are large electricity consumers in science parks and industrial zones, who can take advantage of Taiwan Power Company’s tiered electricity pricing, which can yield savings of NT$6 to NT$7 per kilowatt-hour during peak and off-peak times, in addition to the subsidies.
Besides stabilizing power supply for users, Wu noted that the implementation of post-meter energy storage systems could also enable participation in Taiwan Power’s demand response programs, providing additional revenue while helping balance supply and demand. Currently, international power companies consider energy efficiency and demand response before investing in new power generation capacity, indicating that post-meter energy storage can also alleviate national investment burdens.
Moreover, the Fire Department is expected to release safety regulations for post-meter energy storage systems in mid to late October, focusing on requirements for fire barriers and automatic sprinkler systems. The minimum safety distance from residential buildings, parking lots, and public roads will be reduced to 3 meters. When located outdoors at a factory site, these systems must not obstruct emergency routes or driveways, and must maintain a 3-meter distance from property lines and building walls, with fire barriers reduced to 1 meter.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/economic-ministry-introduces-up-to-50-million-nt-dollar-subsidy-for-post-meter-energy-storage-in-industrial-parks/
