Taipei:State-run Taiwan Power Co. (Taipower) has announced plans to construct 43 substations over the next 15 years to meet the increasing electricity demand. This initiative, as explained by Chairman Tseng Wen-sheng, is driven by the expanding needs of semiconductor manufacturing and artificial intelligence (AI), which pose significant challenges for timely electricity delivery.
According to Focus Taiwan, Tseng outlined the plan at a forum during Energy Taiwan in Taipei, highlighting that the expansion includes approximately 1,922 kilometers of new power lines. He emphasized the unprecedented scale of the project, with an average of three substations to be built annually.
Tseng provided the example of the Songhu substation project in Taipei to illustrate the complexities encountered in grid construction. After 26 years of planning and administrative processes, this project finally commenced last month and is due for completion in 2029. The limited availability of land necessitates shorter transmission distances, but it also results in densely packed infrastructure, complicating the construction of new lines.
The Southern Taiwan Science Park's rising power demand exemplifies the need for additional substations. Tseng noted that grid planning must consider the proliferation of AI equipment beyond large data centers to businesses and potentially homes. This shift could alter evening peak demand to 8-10 p.m., prompting Taipower to revise its load forecasts and consider upgrades to older urban grids.
Tseng advised large data centers to establish themselves near power plants to benefit from shorter dedicated power lines, which could reduce construction time, engineering challenges, and costs. He also mentioned that Taipower is coordinating with major users regarding locations and investment schedules, aiming to collaborate directly with companies investing in computing infrastructure.
Taipower faces the challenge of allocating supply capacity fairly, as assigning capacity to a site developer before an investor is secured could limit availability for other projects. The utility's AI-related electricity demand is primarily driven by manufacturing, including chip fabrication and server production, rather than computing service providers. Taipower is initiating planning with these industries earlier, during industrial park development, to synchronize electricity infrastructure with their growth schedules.
