Past experience has shown that power grid disconnections due to low frequency (below 59.5 Hz) can lead to unloading of the grid, potentially causing large-scale blackouts. During the recent earthquake in Taiwan, a key factor in avoiding widespread outages was the rapid response of energy storage devices. These large-scale battery systems, typically used as uninterruptible power supplies (UPS), reacted within 1 second. Within 10 seconds, they increased power output by 510 megawatts (MW) – equivalent to a single unit at the Taichung Power Plant. This critical boost helped stabilize the grid frequency, preventing it from dropping below the threshold of 59.5 Hz and triggering blackouts. These energy storage devices, originally deployed to manage the fluctuating nature of renewable energy sources like wind and solar, proved unexpectedly effective in mitigating the impact of the earthquake.
Subsequently, the pumped storage plants at Sun Moon Lake and Daguan acted instantaneously. They halted their planned increase in pumped storage due to photovoltaic power and instead shifted to water discharge power generation within 10 minutes. This move swiftly lessened the burden on the power system and effectively boosted the power generation capacity by approximately four Taichung Power Plants. As a result, the power system frequency returned to nearly 60 Hz within the same timeframe. In contrast to the 921 Earthquake striking 25 years ago, Taiwan successfully avoided a nationwide blackout caused by power grid unloading. Additionally, the few natural gas generating units that had tripped offline were promptly brought back online for parallel operation within 40 minutes. Furthermore, solar power seamlessly took over after 9:00 a.m., enabling Taiwan to survive the crisis and maintain normal societal operations throughout the day.
The 510 MW storage battery, which proved immediately useful during the earthquake, has garnered significant attention. According to the Regulations for the Management of Setting up Renewable Energy Power Generation Equipment of Power Users above a Certain Contract Capacity (commonly known as the Large Power Users Clause), enacted under the energy policy in 2021, large power consumers with a contracted capacity of 5,000 kilowatts or more are mandated to install green power generation equipment equivalent to at least 10% of their electricity consumption within five years. Operators are given four options: install renewable energy power generation equipment, purchase renewable energy and certificates, install energy storage facilities, or perform the obligation by paying monetary substitution. In 2021, only 3.4% of large electricity consumers adopted energy storage. The high cost (around $25-30 million per 1 MW system) and the requirement for over 2 hours of power supply deterred many operators. However, I believe the earthquake's impact is likely to make energy storage solutions more enticing. Companies that previously relied on green power certificates will reconsider their approach in favor of on-site storage. Energy storage offers the benefit of immediate backup power during emergencies, which can be lifesaving for business continuity in the face of natural disasters.
Regarding energy storage facilities, the role of booming EVs is also noteworthy. Patrick Tao, Chairman of EVOASIS, a third-party charging grid operator, said in a mid-March interview, "In the future, EVOASIS will become an energy hub in Taiwan. In 2025, we will have 150 MW of charging stations. In the event of electricity shortages, we can dynamically adjust prices to regulate usage by car owners. Furthermore, if the policy for vehicle-to-grid (V2G) opens up, we will actively encourage car owners to sell surplus electricity back to the Taiwan power grid at premium rates. Looking ahead, if all 8 million vehicles transition to EVs, it will necessitate a minimum of 3 to 5 GW of electricity. By that time, in conjunction with EVOASIS' existing highway service area stations and our energy storage equipment, we will become a pivotal hub for efficient energy scheduling and distribution."
The operator's words have revealed two points. First, the thriving network of independent fast-charging stations (outside auto factories and private buildings) could become a hidden munition for energy storage facilities in the coming years. At the beginning of this April, Taiwan had 100 Tesla fast charging stations with 587 charging connectors, alongside 301 non-Tesla fast charging stations equipped with 948 connectors. Gradually, the battery storage capacity within the EV charging network has built up the capability to support the overall power grid in reverse. Second, the number of EVs is skyrocketing. By February 2024, Taiwan had recorded more than 62,000 EVs on its roads. More than 24,000 EVs were added in 2023 alone, pushing the monthly average ownership growth above 2,000. With Luxgen n⁷, MG4, and other affordable EVs entering the market, EV ownership is expected to grow even more exponentially. Projections indicate that licensed EVs will total 164,000 units by 2025, and that by 2030 and 2040, EV ownership will reach 700,000 and 2.8 million units, respectively. Considering an average EV battery capacity of 70 kWh, this translates to 11 million, 49 million, and 196 million kWh of stored electricity in EVs by 2025, 2030, and 2040, respectively. Such figures present a lucrative business opportunity directly to EV owners. During peak daily electricity consumption hours, they can sell surplus power from their car batteries back to the grid at premium rates, facilitated by V2G arrangements within the charging industry, to meet the high electricity demand. Given that Taiwan's daily peak-to-peak electricity consumption fluctuates by over 6 million watts, regulating peak-to-peak demand through the energy stored in the EVs mirrors the concept of a virtual power plant, a win-win-win scenario for Taipower, charging operators, and EV owners alike.
I'd like to highlight successful cases of V2G implementation in France and the UK. Firstly, France has installed over 100 V2G charging piles with a capacity of 11 kW in commercial spaces and public parking lots since 2017. They have successfully aggregated 1 MW of V2G capacity, akin to a mini virtual power plant, which entered the market as primary standby capacity in 2021. This initiative not only solidifies the market acceptance of EVs but also provides a monthly benefit of €20 for car owners utilizing V2G charging piles. Secondly, the UK government has subsidized the installation of 320 V2G two-way charging piles in households since 2018. These piles are accessible to Nissan LEAF owners and lessees. Paired with an energy management system, they automatically charge EVs during off-peak hours, while any excess power generated is sold back to the grid. This innovative approach not only saves car owners over £800 annually but also transforms residences into small green power hubs.
From the cases highlighted above, it becomes evident that transitioning from a conventional fuel-powered vehicle to an electric one offers multifaceted advantages. Not only does it contribute to reducing environmental pollution, but it also allows EV owners to benefit from current policy incentives (exemptions from license tax and fuel tax). Moreover, EVs come with economical fuel and maintenance costs. They will also play a pivotal role in the future power supply system. Their ability to leverage price differences will contribute to the widespread adoption of sustainable energy practices. Step by step, this transformative scenario will unfurl before our eyes.
About the author - Kenny Liu
Graduated from Dept. of Aeronautics and Astronautics, Cheng Kung University in 1988, started his auto industry career since July 1990 after two year military service. Starting as a service engineer and a temp technician, product marketing specialist in Peugeot/ Daihatsu, marketing and dealer channel specialist in VW LCV from March 1992, then field manager in GM Taiwan from Feb. 1994, sales and service / parts head in Ford Lio-Ho from Sep. 1998 till retirement in May 2019. Kenny then started to work for JLR Taiwan as sales/service head and consultant/ lecturer. After that, he was invited to work at a Suzuki dealer of Taipei as the general manager until April 2022.