OMNI Features｜MOEA Releases 2023 National Electricity Supply and Demand Report．Investment Situation in Taiwan and Overseas from January to June 2024．Akaysha Energy Secures AUD 650 Million in Funding for the Construction of Orana BESS Project

｜Ministry of Economic Affairs Releases 2023 National Electricity Supply and Demand Report
On the 15th, the Ministry of Economic Affairs published the "2023 National Electricity Supply and Demand Report," which details the power supply situation for the year. The report takes into account various influencing factors and energy-saving measures while outlining electricity demand and construction plans for the next ten years (2024–2033). It anticipates a growth in electricity demand of approximately 12–13% by 2030. To meet the increasing demands of the AI industry, immediate construction of new units, upgrades to the power grid (substations), and energy storage systems are required to ensure stable power supply, along with a call for societal support for the development of related power facilities.

The Ministry noted that since the outbreak of the Russia-Ukraine conflict in 2022, fluctuations in international fuel prices have led to global inflation, subsequently affecting electricity demand. In 2023, electricity consumption in Taiwan decreased by 1.0%, with industrial electricity usage declining by approximately 4.1 billion kWh, representing a 2.6% drop. The forecasted average annual growth rate for national electricity demand from 2024 to 2028 is about 2.5%, with electricity demand for AI technology projected to increase from 2,240 MW in 2023 to 240 MW by 2028, an increase of roughly eight times.

By the end of 2023, installed capacities for solar photovoltaic and offshore wind power reached 12.41 GW and 1.76 GW, respectively. Current solar power generation significantly contributes to daytime supply capabilities, adequately meeting peak demand for 6 hours during the day. Consequently, the focus of power system dispatch has shifted to managing peak demand during the 3 hours of nighttime. To address the intermittency of renewable energy, the government plans to construct multiple gas-fired units to stabilize electricity supply. Furthermore, in response to changing international circumstances and geopolitical influences, the government will actively promote green energy initiatives to ensure stable power supply and improve air quality.

｜Investment Situation in Taiwan and Overseas from January to June 2024
According to statistics from the Department of Investment Review, MOEA, from January to June 2024, 1,080 cases of investment in Taiwan were approved, amounting to approximately $3.269 billion; 520 cases of overseas investment were approved, totaling around $25.725 billion. The following sections detail the investment situation for overseas Chinese and foreign investors, mainland Chinese investments in Taiwan, and overseas investments in general.

Investment by foreign investors in Taiwan:
From January to June 2024, 1,060 cases of foreign investment were approved, representing a decrease of 5.53% compared to the same period last year. The total investment amounted to USD 3.253 billion, a decline of 49.30%. There were 541 newly established companies with an investment amounting to USD 9.3178 million. Investments from New Southbound countries totaled 303 cases, reflecting an increase of 4.84% from the previous year, with an investment amount of USD 172.636 million, a decrease of 92.30% compared to the same period last year.

Mainland Chinese Investment in Taiwan:
From January to June 2024, 20 cases of mainland Chinese investment in Taiwan were approved, an increase of 42.86% compared to the previous year. The total investment was USD 16.366 million, a slight decrease of 1.74% from the same period last year. Since the opening of investments in June 2009, a cumulative total of 1,606 cases of mainland Chinese investment in Taiwan have been approved, with a total amount of USD 2.623 billion.

Overseas Investment:
In the first half of 2024, 344 cases of overseas investment were approved, an increase of 38.15% from the previous year, with a total investment amounting to USD 24.18583 billion, reflecting a significant increase of 169.64%. This growth is primarily attributed to the approval of a large-scale overseas investment project by Taiwan Semiconductor Manufacturing Company (TSMC) from January to June. Investments in New Southbound countries accounted for 147 cases, representing a year-on-year growth of 63.33%, with an investment total of USD 4.53266 billion, an increase of 113.23% compared to the previous year.

Investment in Mainland China:
From January to June 2024, 176 cases of investment in mainland China were approved, showing a slight decrease of 1.12% compared to the previous year. The total investment amounted to USD 1.54765 billion, a decline of 19.03% from the same period last year.

｜Akaysha Energy Secures AUD 650 Million in Funding for the Construction of Orana BESS Project
Akaysha Energy has announced the closing of a A$650m debt raise with a group of eleven domestic and foreign banks. The financing will provide construction funding for Akaysha's Orana Battery Energy Storage System (BESS) project, which is one of the largest 4-hour batteries globally and will add more than 1,660MWh of storage capacity to the National Electricity Market (NEM). The lender group is made up of domestic banks including ANZ, CBA and Westpac, and international banks BNP Paribas, Canadian Imperial Bank of Commerce, DBS, ING, Mizuho, Rabobank, Siemens Financial Services through Siemens Bank, and SMBC.

The Orana BESS project is located within the Central-West Orana Renewable Energy Zone (REZ) and involves financing that includes the provision of over AUD 750 million in Letters of Credit (L/C) to support project security obligations. Andrew Wegman, Managing Director and Chief Financial Officer at Akaysha, announced a AUD 250 million BESS portfolio debt financing in April of this year, followed by the announcement of financing for the Orana BESS project. Wegman indicated that as the Orana BESS project progresses into the construction phase, Akaysha's energy storage project construction capacity in Australia has surpassed 4 GWh.

The core of this financing lies in the signing of a 12-year Virtual Power Purchase Agreement (VPPA) with EnergyAustralia, which includes a contracted capacity of 200 MW. This agreement represents a first for EnergyAustralia and, as a financial instrument, enables it to "notionally" charge and discharge 200 MW of a "virtual battery" within pre-agreed daily bidding parameters, distinct from the physical operation of the battery managed by Akaysha.

Akaysha stated that this virtual power purchase agreement is the largest non-recourse finance VPPA signed to date in the National Electricity Market (NEM), solidifying Akaysha's leading position in the battery power purchase agreement (PPA) over-the-counter (OTC) market, thereby increasing the company’s contracted capacity in the NEM to 1 GW / 2.4 GWh.

參考來源：經濟部｜Akaysha Energy