Energy transformation encounters headwinds, but industrial output rises against the trend? ITRI estimates it will reach 533.4 billion yuan next year

The power demand for AI data centers is rising rapidly, and the world has entered the "power age", driving business opportunities in the heavy power, energy storage and renewable energy industries. The International Institute of Obstetrics and Commerce of the Industrial Research Institute estimates that the output value of Taiwan's energy transformation-related industries will reach 491 billion yuan in 2026, and is expected to climb to 533.4 billion yuan in 2027, an annual increase of 8.6%. Growth momentum comes from the expansion of AI data centers, which drives demand for power grids and heavy electrical equipment, as well as energy storage technology upgrades, renewable energy development and overseas market expansion. Among them, heavy electrical equipment is still the leader in industry growth.

Wang Mengjie, deputy director of research at the International Institute of Obstetrics and Mechanics of the Industrial Research Institute, pointed out that global power demand continues to grow, with the main driving forces coming from AI data centers, electric vehicles and terminal electrification of electricity. AI data centers not only require a large amount of power, but also put forward higher requirements for grid connection speed, power supply reliability and power quality, driving demand for transformers, switchgear and power grid engineering. He analyzed that heavy electrical equipment is shifting from traditional passive power supply to having active control capabilities such as voltage, frequency adjustment and protection coordination. The high power demand of AI will also promote the development of new architectures such as 800-volt DC power supply and solid-state transformers (SST). Taiwanese manufacturers have the opportunity to further move from equipment manufacturing to system integration.

Energy storage is no longer just a tool for peak shaving and valley filling, but an important resource to assist in the consumption of renewable energy, reduce grid connection bottlenecks and maintain grid stability. As AI power consumption and green power demand increase simultaneously, business opportunities in the energy industry will also expand from equipment to power supply, dispatch and energy integration services.

As for the layout of renewable energy, optoelectronics has indeed slowed down due to policy influence, and front-of-meter energy storage has also become saturated. Wang Mengjie believes that relevant industry players have indeed sought overseas development, and have listed Japan and Australia as the next stage of layout targets, and do not need to rely entirely on domestic policies to release the market. In comparison, offshore wind power is limited by engineering, capital and supply chain conditions, making cross-border export more difficult, but Taiwan still has regional competitive advantages. Wang Mengjie pointed out that Taiwan is a market in the Asia-Pacific region with more practical offshore wind power development experience and execution capabilities. Japan and South Korea have still faced challenges in promoting wind power in recent years, such as resistance from local residents and fishermen and cautious policy attitudes. Taiwan's industrial development is relatively stable and is still ahead of Japan and South Korea.

However, Taiwan wind power is also facing policy changes, development progress and cost pressures. Wang Mengjie analyzed that Woxu has a global market presence, while CIP's investment focus is relatively concentrated in Taiwan; global developers have more complete capital and supply chain dispatching capabilities, and have more room to withstand inflation and project cost fluctuations. Companies with weak resources and integration capabilities will be vulnerable to rising costs.