[Finance] AI Boom Intensifies, Ministry of Economic Affairs Revises Upward Average Annual Electricity Demand Growth to 2.5% Over the Next 10 Years
bellala 央廣2h ago
With the continued development of AI data centers and the semiconductor industry, the Ministry of Economic Affairs today (18th) released the "114th Year (2025) National Power Resource Supply and Demand Report." The latest forecast estimates that the national electricity demand growth rate will reach 2.5% annually from 2026 to 2035, a significant upward revision of 0.8 percentage points from the 1.7% estimated in last year's report. The Ministry of Economic Affairs will also ensure stable power supply. #Please listen to reporter Yang Wen-chun's interview report#
Wu Chih-wei, Director-General of the Bureau of Energy, explained that Taiwan's electricity demand outlook for the next 10 years is very strong. The Ministry of Economic Affairs has included the demand for AI data centers, semiconductor industry investments, and capacity expansion in its assessment this time. He pointed out that when estimating last year, there were still many uncertainties such as international tariff policies. Now that the direction of industrial investment is gradually becoming clearer, the electricity demand growth forecast has been revised upwards.
Wu Chih-wei stated that the average annual growth rate of electricity demand of 2.5% before 2035 is the second highest in historical forecasts and is higher than the actual average annual growth rate of 1.2% between 2016 and 2025. He said: "(Original sound) Last year, we estimated about 1.7% until 2034. This year, we have adjusted it to 2.5% due to several factors. The first is the growth in electricity demand from AI data centers and semiconductors, which appears to be expanding significantly and is gradually being realized. Therefore, we believe the future demand looks very strong."
In addition to the growth in industrial electricity demand, temperature is also an important reason for the Ministry of Economic Affairs to revise its demand forecast upwards. Wu Chih-wei pointed out that from the beginning of this year to June 10th, there have been 44 days with an average daily temperature exceeding 26 degrees Celsius, which is higher than the 38 days during the same period last year. Since temperature is highly correlated with air conditioning electricity demand, it has also pushed up the overall electricity demand forecast.
To cope with future demand growth, the Ministry of Economic Affairs plans to add 26 GW of gas-fired power generation capacity between 2026 and 2035, with 4 new units totaling 5.2 GW expected to join the power supply this year. At the same time, renewable energy will continue to expand. It is estimated that by 2030, the installed capacity of solar power will reach 31 GW and offshore wind power will reach 10 GW; by 2035, it will be further increased to 35 GW for solar power and 18 GW for offshore wind power.
Wu Chih-wei stated that even with a significant increase in electricity demand, the reserve capacity can remain stable through the planning of new power sources. Taking 2029, the tightest year for power supply, as an example, there will still be about 3 GW of reserve capacity, equivalent to the power supply capacity of more than two large units, which is sufficient to meet the new electricity demand from AI data centers and other emerging uses.
In addition, the Ministry of Economic Affairs also took this opportunity to express its concerns about the direction of amendments to the "Air Pollution Control Act." Wu Chih-wei pointed out that if local governments can unilaterally force businesses to reduce emissions in the future, it may impact the installed capacity of coal-fired and gas-fired power units by more than 20 GW, affecting electricity generation by 110 to 120 billion kilowatt-hours, accounting for more than one-third of Taiwan's annual electricity demand. This could affect power supply stability and industrial investment confidence. He called on the Legislative Yuan to carefully consider the opinions of all parties and maintain the operation of the current system. (Editor: Song Wan-yuan)
Source Link: https://www.rti.org.tw/news?uid=3&pid=215348
How does this article make you feel?
0 people reacted