TAIWAN Trends and Developments Contributed by: Susan Lo, Chi Lee and Evelyn Shih, Lee and Li Attorneys-at-Law
• TIEC has not yet begun operations and will initially focus solely on offshore wind energy; • the electricity purchased will primarily be used by the shareholder companies, with limited market volume; • the existing market structure and buyer eligibil - ity rules remain unchanged, ensuring continued access for other electricity users; • TIEC will operate in a competitive environment alongside other electricity retailers; and • Taiwan’s renewable energy market remains diverse, with solar and other green energy sources being available, preventing monopolistic behaviour. Carbon policy driving demand At the beginning of 2025, Taiwan’s Ministry of Environ - ment introduced carbon fees and expanded carbon inventory requirements, which is estimated to affect approximately 500 companies and 20,000 retail out - lets, including those in the department store, whole - sale and transportation sectors. As a result, Taiwanese companies, especially those not yet part of global initiatives like RE100, will face increased pressure to manage carbon emissions. This is expected to drive steady growth in demand for renewable energy, making platforms like TIEC crucial for enabling broader participation in Taiwan’s green transition. Other new JVs formed to boost Taiwan’s solar energy sector A number of local and international energy players also established new JV platforms to pursue renew - able energy development in Taiwan. For example, on 4 June 2025, Green Rock Energy (ticker: 7833) announced its partnership with Delta Energy and Chu - anshi Energy in order to establish a new JV platform. This new JV platform is designed to integrate capabili - ties across solar power plant development, engineer - ing and operations management, and green electric - ity trading, with the goal of building a comprehensive investment platform focused on Taiwan’s renewable energy market. As the lead investor, Green Rock Energy will lead the JV platform, focusing on investing in high-potential domestic renewable energy projects and govern -
ment tenders. The JV plans to expand its solar asset portfolio rapidly through both acquisitions and self- developed projects. The new JV platform also aims to support corporate sustainability by facilitating CPPAs, helping large electricity users secure stable, long-term renewable energy supply with flexible pricing options. This JV has positioned itself as a key player in Taiwan’s growing green electricity trading market, aligning with national carbon reduction goals and increasing the corporate use of renewable energy. Policy-Driven Opportunities for AI-Focused JVs in Taiwan On 14 April 2025, Taiwan’s Ministry of Digital Affairs updated its existing initiative of promoting AI invest - ment via the “AI Startup Investment Enhancement Guidelines”, introducing more flexible co-investment terms to encourage private sector participation in the country’s growing AI ecosystem. Under the revised framework, private investors seeking to co-invest with the government must match or exceed the gov - ernment’s investment amount. In certain cases, this requirement may be relaxed to 50%, subject to eligi - bility criteria. This development is part of a TWD10 bil - lion national initiative aimed at accelerating the devel - opment of domestic AI and digital economy start-ups through a “private-led, government-backed” invest - ment model. For foreign companies considering utilising these pol - icy incentives in the AI industry, forming a JV vehicle with other private co-investors and the government presents a strategic entry point into Taiwan’s local AI market. The guidelines prioritise investments in private domes - tic start-ups, with restrictions on Chinese-funded enti - ties and caps on government contributions (TWD150 million per invested entity, TWD100 million per invest - ment round). Applications must include detailed busi - ness plans, financial disclosures and performance metrics, ensuring transparency and accountability. This policy relaxation signals Taiwan’s commitment to fostering innovation through structured public-private partnerships, making it an attractive jurisdiction for AI- focused JV activities – especially for companies seek - ing to align with government funding, access local
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