Taiwan’s Fair Trade Commission cleared the formation of a joint venture between six major corporations to create a green electricity trading platform, marking a significant step in the island’s renewable energy transition.
The companies—China Steel Corp., state-owned CPC Corp., Chunghwa Telecom Co., Advanced Semiconductor Engineering Inc., United Microelectronics Corp., and Tung Ho Steel Enterprise Co.—received approval to establish Taiwan Smart Power Co. The regulator determined the venture poses no competitive threats to the market.
Dubbed the “green electricity Costco,” the platform will purchase offshore wind power from Taiwan’s phases 3-1 and 3-2 development projects before reselling electricity in smaller quantities with shorter contract terms. This structure addresses a critical gap in Taiwan’s renewable energy market, where smaller companies struggle to access green power directly from large-scale projects.
The arrangement serves dual purposes: enabling mid-sized enterprises to meet sustainability goals while providing project developers with creditworthy purchasers to secure financing. Taiwan aims to expand offshore wind capacity to 5.7GW by 2025 as part of its nuclear phase-out strategy.
The commission noted Taiwan Smart Power hasn’t begun operations and will focus exclusively on offshore wind rather than other renewable sources. Most purchased electricity will supply the six founding companies’ own facilities, limiting market impact. The regulator emphasized existing buyers retain purchasing freedom and that the renewable sector remains competitive with solar and other alternatives available.
Taiwan’s offshore wind sector has attracted significant international investment, with the Greater Changhua projects totaling 900MW completed in April 2024 and multiple additional projects under development by European developers including Ørsted and Copenhagen Infrastructure Partners.
