RE100 is a global initiative led by the Climate Group in collaboration with CDP in 2014. Companies joining RE100 must be committed to 100% renewable electricity by 2050 and submit a proposal each year.
As of April 2021, 300 companies have joined RE100. As shown in the graph below, nearly 70% of the members consider cost saving as one of the reasons they joined RE100, indicating that the transition to renewable electricity is unstoppable.
Nearly all members consider GHG emission reduction and cooperate social responsibility the drivers behind utilizing clean energies. (Image: RE100 Annual Progress and Insights Report 2020)
Renewable energy market in Taiwan
Presently, a total of eight Taiwan-based businesses have joined RE100, including four cosmetic companies (O’right, TCI, 3dL Group, and Jolab), two technology companies (TSMC and Delta Electronics), a textile company (Kingwhale Cooperation), and a biotechnology company (Grape King). The Taiwanese government has been actively developing clean energies in recent years and pledged to source 20% of electricity from renewables by 2050. With heightened demand for renewables, the energy storage market is expected to boom.
Having said that, the RE100 annual report 2020 stated that it is challenging for Taiwan to go 100% renewable, citing concerns over high renewable electricity prices, information transparency such as green energy supply volume and electricity trading prices, and difficulties for medium and small business to purchase clean energies (since medium and small business cannot acquire T-REC from the market, whilst current PPA are designed for major electricity consumers). Therefore, Taiwan must increase its cleans energy supply and integrate energy storage to meet the target.
Power generation since renewable energy purchase mechanism initiated in 2020 (Image: Meeting demand with supply: renewable energy market briefing Taiwan)
Taiwan energy storage market
Factoring in ancillary services provided by Taiwan Power Co. (Taipower), the “major electricity consumer clause,” and social responsibilities, ESS InfoLink optimistically forecast 2023 to be a pivotal year for the energy storage market in Taiwan, with installed energy storage capacity reaching 3 GWh by 2025, 10 GWh by 2030. Main drivers for the development of Taiwan’s energy storage market include:
- Reduction in chartered capacity granted by “major electricity consumer clause.”
- Energy storage demand increases in accordance with higher renewable energy share in energy mix, as energy storage provides backup power and ramp-rate control solutions.
- Ancillary services provided by Taipower and electricity trading platform.
- “Major electricity consumer clause” extension: More than 1 GW chartered capacity.
- More behind-the-meter business models such as EVs and backup power.