Business Opportunity and Risk from Climate Change

Business Opportunities

(1) Power Generation, Distribution and Storage

Strengthen the layout planning of offshore wind power onshore substations, strive for and develop private and Taipower energy storage projects, and develop offshore wind power offshore substations.

The Changbin Industrial Zone in Changhua County is offshore wind power with a construction capacity of 1,044 MW. It will then become the largest offshore wind power land-based substation in Taiwan.

The Hailong wind farm is expected to be connected in the first quarter of 2025. After commercial transfer, it will become the next largest single offshore wind power project, providing electricity for more than one million households. TECO has accumulated about 2GW of construction capacity, accounting for about 35% of the current offshore wind farms, ranking first among domestic manufacturers.

TECO obtains Taipower's largest energy storage project (60MW Longtan energy storage system) turnkey project, and invest in Taipower's wide-ranging energy storage system in decentralized power grid resilience program. After the liberalization of the electricity industry in Taiwan, TECO will has the capabilities of energy storage, energy management, and power plant operation.

For Taiwan Grid Resilience Plan for the following 10 years, A total of 37 billion business opportunities includes (1) Decentralized projects to reduce the risk of grid concentration, with a business opportunity of 20.6 billion. (2) Strengthen projects to improve the stability of the equipment and have a business opportunity of 15.4 billion. and (3)  Defense engineering projects to prevent the spread of blackout accidents with a business opportunity of 1.26 billion.

(2) Industrial Efficiency Upgrade

For high energy-consuming industries such as petrochemicals, iron and steel, cement, papermaking and electronics, TECO promotes energy conservation solutions and strive for business opportunities in replacing old equipment with new ones. The average energy saving rate of the enterprise's emission reduction are: Single motor with frequency conversion control can save about 30% energy, the integrated operation of fan, pump and air compressor can save about 25%, and with the software monitoring can save another 10%. The most welcome solution is "ultra-high energy efficiency cooling tower intelligent drive control system", which consists of a permanent magnet direct drive motor and a dedicated variable frequency drive for cooling towers, and its efficiency can reach IE5 standards. It saves 18% of operating cost in five-year usage

(3) Electric vehicle powertrain module

TECO adopts its core technology to develop power-train systems for "electric passenger vehicles", "electric buses" and "electric utility vehicles". Power-train system with range of 8~272kW to replace fossil engines. The products comply with ISO 26262 and ISO 16750 regulations. It is currently the only power system manufacturer that has obtained DMIT (Design and Manufacture in Taiwan) certifications from the government. TECO helps accelerating the realization of the goal of electric vehicle supply chain localization. TECO has also launched the latest commercial vehicle with a capacity of 3.49 tons, and will cooperate with Taiwan Palian Express to jointly build the first electric logistics fleet in Taiwan.

Climate Risk Management

• [note1] Change in fraction of population annually exposed to heatwaves in Texas (United States) under NGFD current policies scenario.
• [note2] Relative change in labour productivity due to heat stress in Jiangsu (China) under NGFD current policies scenario.

Contact window: ESG Office/ Jay LC Huang, csr@teco.com.tw