Taiwan eyes domestic battery sector boost with behind-the-meter grid-scale energy storage incentives

Taiwan’s Ministry of Economic Affairs (MOEA) is reportedly planning a new incentive program to support behind-the-meter (BTM) energy storage systems using domestically produced battery cells. The move is intended to counteract pricing pressure from Chinese imports and redirect investment away from the oversupplied front-of-the-meter (FTM) segment.

The program, as reported by local media and DigiTimes, aims to support 1,000 MWh of BTM storage capacity between 2026 and 2029. Incentives will be based on a forthcoming study of BTM system cost structures, and eligibility will likely hinge on the use of Taiwan-made battery cores. The energy storage installation targets 300MWh for 2026 and 2027, and 200Wh each for 2028 and 2029.

Battery manufacturers in Taiwan, such as Formosa Smart Energy, Molicel, ProLogium, and Foxconn would be expected to benefit, though many target non grid-scale storage markets such as home energy storage and electric vehicles. Many have expanded capacity in recent years but continue to face challenges due to falling prices and insufficient demand.

The DigiTimes report said initial figures suggest at least NT$1 million (US$34,360) in subsidies for each 1 MWh installed, with details still to be determined before scheduled implementation in 2026.

Taiwan’s revised 2025 electricity tariffs include a minor storage-related element via the ancillary services tariff, which accounts for the role of batteries and other fast-response technologies in grid stability.