Experts: AI Brings Power Demand Challenges, Strengthening Grid Resilience Is Top Priority

Ou Jia-rui, Chairman of the Taiwan Electricity Enterprise Association, said today that the semiconductor and artificial intelligence (AI) industries are twin engines driving Taiwan's economic growth, but they also bring significant challenges in terms of power demand. He emphasized that strengthening grid resilience and upgrading infrastructure will be the most critical aspect of Taiwan's energy transition.

PricewaterhouseCoopers Taiwan, the Taiwan Electricity Enterprise Association, and the Taiwan Corporate Directors Association jointly hosted a seminar today titled 'The Era of Emerging Power Demand: Outlook for Taiwan's Energy Transition'.

Ou stated that semiconductor-related industries already account for over 40% of Taiwan's industrial electricity consumption, and AI data centers are rapidly increasing local power density. Facing a sharp rise in emerging power demand, Taiwan must continuously advance power generation and grid infrastructure development. In particular, grid resilience and structural upgrades are the top priority in energy transition, with the core goal of achieving low-carbon, stable, and diversified power supply.

Wang Jin-dun, Deputy Director of the Taiwan Power Company's Comprehensive Research Institute, also noted that power consumption in AI data centers includes diverse loads such as computing equipment, cooling systems, energy storage, uninterruptible power systems, and on-site power generation. These not only result in high power density but also demand higher levels of power supply stability.

He believes that to address large-scale data centers and new power demands, Taiwan should promptly establish supporting measures such as site guidance, grid connection reviews, PUE (Power Usage Effectiveness) efficiency requirements, energy storage backup, differential pricing, and demand response. Large consumers should also be required to have load forecasting, flexible dispatching, and the ability to participate in ancillary services to reduce impacts on regional power grids.

Tsai Yi-tai, Lead Accountant for Energy Transition Services at PricewaterhouseCoopers Taiwan, warned that businesses facing electricity price volatility, green power procurement, supply chain decarbonization requirements, and rising power consumption from data centers and advanced manufacturing processes should not wait until receiving electricity bills to manage power usage. Instead, they should incorporate power conditions into investment planning, risk management, and supply chain strategies at an early stage, and enhance their own resilience through energy efficiency, energy storage, demand management, and intelligent systems.

Tsai stated that Taiwan's energy transition must simultaneously balance power supply stability, energy security, net-zero decarbonization, and industrial competitiveness. He hopes ongoing dialogue will build consensus on energy transition and jointly shape a resilient, low-carbon, and sustainable power future capable of supporting industrial development. (Edited by Lin Shu-yuan)