Over 100 Gather at the New Energy & Carbon Market Opportunity Forum to Explore VPPs, Hydrogen, and Carbon Removal Markets

To support enterprises in advancing net-zero transitions and capturing emerging opportunities, RECCESSARY, a new-energy and carbon-market intelligence platform, and EnergyOMNI 全・能源, a net-zero information platform, jointly hosted the "New Energy and Carbon Market Opportunities Forum" on the 19th.

The event brought together industry leaders and domain experts to deliver in-depth analysis of global trends and investment opportunities, attracting participants from across industries, academia, and the wider public.

RECCESSARY Founder and CEO Jason Huang stated that the foundation of the forum was the belief that media outlets should act not only as competitors but as collaborators. He noted that significant information asymmetry persists globally on new-energy and carbon-related issues. Through research and editorial capabilities, the goal is to "make information valuable."

EnergyOMNI Founder Xin-En Wu highlighted that this year marks the platform's fourth anniversary. She emphasized that the core function of media is not only to convey information but also to participate in policy governance and public dialogue across industries. By producing in-depth reporting and actionable insights, media can help society understand complex issues. "EnergyOMNI itself is an innovative entity combining media, industry observation, and institutional advocacy," she said.

Executive Deputy Director Lin Tzu-Lun of the Executive Yuan's Energy and Carbon Reduction Office remarked in his opening address that he has worked on decarbonization for 20 years. As this year marks the 10th anniversary of the Paris Agreement, global issues are moving rapidly. Since the passage of Article 6 last year, carbon market development has accelerated, and limiting global temperature rise to 1.5°C has become increasingly crucial.

On 19 June this year, new-energy and carbon-market intelligence platform RECCESSARY and net-zero information platform EnergyOMNI 全・能源 co-hosted the paid-entry "New Energy and Carbon Market Opportunities Forum", bringing together industry leaders and subject-matter experts to provide in-depth analysis of global trends and investment opportunities, and attracting participants from across industries, academia, and wider society.

Virtual Power Plants Ease Peak Demand Pressures and Save Grid Investment Costs

The forum's first session focused on new-energy topics including virtual power plants (VPPs), hydrogen energy, and power retailing platforms, discussing both the challenges and opportunities ahead.

George Hsu, Chair of the Taiwan Energy Digital Transformation Alliance, presented "From Policy to Practice: Building Regulatory and Market Mechanisms that Support VPP Development." Citing U.S. DOE data, he said VPPs will replace 10–20% of peaking power plants by 2030 and save US$10 billion per year in grid investment costs. He argued that Taiwan should target 15–25% of peak capacity from VPPs and stressed the importance of market-based mechanisms.

Addressing grid instability, Hsu repeatedly referenced Spain's major blackout in April, where the primary cause was a sudden voltage surge that generation units failed to respond to in time. VPPs, he noted, can provide faster and more flexible dispatch capabilities.

Quoting DOE projections, Hsu noted that with fossil-fuel assets retiring, 200 GW of coincidental peak demand will require new resources by 2030. Tripling the current VPP scale could meet 10–20% of this demand and save US$10 billion annually in grid expenditures.

The 2025 DOE update on VPP commercialization provides insights that Taiwan could adopt, Hsu said. He outlined five key areas for VPP development: Expansion of distributed energy resources (DERs), Streamlined VPP registration processes, Greater standardization of VPP operations, Integration of VPPs into utility planning and incentive mechanisms, and Inclusion of VPPs in wholesale electricity markets.

Based on Taiwan's current policies and regulations, Hsu proposed three recommendations:
1. Taipower's electricity trading center should expand product categories to include VPPs (or alternative electricity providers), enabling shared-economy-based stable supply and multi-party value creation.
2. Provide reasonable incentives—reflecting avoided costs across generation, transmission, distribution, and retail—to enhance system resilience.
3. Establish secure network infrastructure for distribution systems and DERs in line with U.S. DOE cybersecurity frameworks to protect against physical and cyber threats.

Hsu argues that 15% to 25% of Taiwan's peak-capacity resources should come from virtual power plants (VPPs) and that VPP development must be grounded in market mechanisms. Addressing grid instability, Hsu repeatedly referenced Spain's major blackout in April, noting that authorities confirmed the outage was caused by generating units failing to respond to a sudden voltage surge—an issue that VPPs can help mitigate through faster and more flexible dispatch.

Grid Instability Increasing; VPPs Help Reduce Outage Risks

Roger Chen, Chairman of Enel X Taiwan, delivered a keynote titled "Virtual Power Plants: Turning Electricity Costs Into Sustainability Opportunities—A Key Driver for Corporate Energy Transition and Innovation." He emphasized that achieving net zero requires greater demand-side flexibility.

Data shows that Taiwan's annual peak load lasts roughly 200 hours, only 2% of the year. Demand response offers a fast and cost-effective way to supply peak capacity. For enterprises, joining VPP programs enables revenue generation, enhanced sustainability performance, improved operational reliability, and strengthened grid resilience.

Chen noted that global decarbonization, electrification, and digitalization are driving up corporate electricity consumption. With rising carbon-related costs, VPPs not only offset part of these expenses but also convert electricity management into a sustainability opportunity, improving resilience and reducing blackout risks.

Demand response aggregates DERs—EVs, generators, wind, solar PV, energy storage—through an aggregator to create a "virtual power plant." Even households with small-scale resources can participate, forming a complementary resource to centralized generation. He likened demand response to a seesaw, balancing electricity supply and demand to maintain stable grid frequency at 60 Hz and reduce the likelihood of widespread outages.

Enel X is the world's largest demand-response VPP operator. Data showed its global dispatch count grew from 333 events in 2017 to 1,340 events in 2024, a fourfold increase in seven years. Chen stressed that this reflects escalating electricity demand and heightened grid volatility due to climate change.

Chen emphasized that achieving net zero requires significantly greater demand-response flexibility. Data shows that Taiwan's annual peak load lasts roughly 200 hours—only 2% of the year's 8,760 hours—making demand response a fast and cost-effective solution for meeting peak demand.

How to Address Offshore Wind Procurement Pain Points? Taiwan Smart Electricity & Energy Unveils Flexible Solutions

For years, solar PV has dominated Taiwan's renewable market due to easier access and lower costs. However, it faces limitations from land constraints and social resistance. According to MOEA statistics, corporate green-power demand will reach 48 TWh by 2030, rising to 100 TWh by 2040.

Yet procuring offshore wind power remains difficult. Banks require buyers to commit to at least 50 MW and 25–30-year power purchase agreements (PPAs) with investment-grade credit ratings.

Taiwan Smart Electricity & Energy Co.—Taiwan's 100th power retailer—projects 1 GW of procurement capacity primarily from the Round 3-1 and 3-2 offshore wind zones, offering more flexible purchasing solutions.

Deputy General Manager Daniel Chiu noted that offshore wind provides stable all-weather generation and is expected to reach 40–55 GW installed capacity by 2050, becoming the backbone of Taiwan's renewable supply and net-zero ambitions.

He identified three key challenges under the post-FIT corporate PPA model:
Large contract scale and long duration: Minimum 50 MW and 25–30 years exceed the capabilities of most enterprises.

High credit requirements: Investment-grade ratings exclude most Taiwanese SMEs.

Market stagnation: High barriers prevent developers from securing enough buyers.

To break the deadlock, Taiwan Smart Electricity—established in 2024 as a quasi-public offshore wind retailer—obtained international credit ratings to bulk-purchase wind power and resell it in small units starting from 5 MW with contract terms of 10, 20, or longer years. Estimated annual procurement will reach 4.1 TWh, around 20% of Round 3 wind-farm output, supporting sectors including semiconductors, steel, petrochemicals, and transportation.

Chiu emphasized that Taiwan Smart Electricity rigorously reviews wind-farm administrative contracts, financial structures, and supplier agreements to avoid acquiring "stranded" projects. Advantages include lower procurement thresholds, risk diversification, surplus-power matching services, and optimized wind-solar portfolio design based on enterprise demand profiles.

Chiu noted that offshore wind offers the advantage of round-the-clock stable generation and is expected to reach 40–55 GW of installed capacity by 2050, positioning it as a core pillar of Taiwan's green-power supply and its 2050 net-zero pathway. However, with the Phase 3 offshore wind development framework shifting away from feed-in tariffs toward corporate long-term CPPAs, developers now face three major challenges: large contract scale, long contract duration, stringent credit-rating requirements, and a resulting market bottleneck.

Where Should Taiwan Begin With Hydrogen Investments? Linde LienHwa Outlines Key Trends and Challenges

As Taiwan prepares to launch its first hydrogen refueling station this year, industrial gas provider Linde LienHwa shared insights on domestic hydrogen developments.

Jeffery Shen, VP of Bulk Gases & Clean Energy, said the company has produced hydrogen for over 30 years and was the first in Taiwan to implement carbon-capture technology, recovering 60% of CO₂ for use in beverages, medical applications, and semiconductor manufacturing.

The hydrogen value chain spans production, transportation, and application. Shen noted that Taiwan currently relies on gaseous hydrogen, which is more cost-competitive than liquid hydrogen. However, if Taiwan plans to import green hydrogen in the future, it must begin investing in liquid-hydrogen infrastructure.

Currently, Taiwan lacks low-carbon or zero-carbon hydrogen sources; thus, hydrogen-fired power generation is not yet cost-effective. However, using surplus green electricity during peak renewable periods for hydrogen production can serve as a long-duration energy-storage solution and help balance grid pressures.

Shen expects two hydrogen refueling stations jointly with CPC Corporation to be completed by late Q3 this year, marking Taiwan's entry into the hydrogen mobility era.

Shen noted that Linde LienHwa has produced hydrogen for more than 30 years and was the first in Taiwan to introduce carbon-capture technology, enabling the recovery of 60% of CO₂ for use in carbonated beverages, medical applications, and semiconductor processes. She explained that the hydrogen value chain spans production, transportation, and end-use applications. Taiwan currently relies mainly on gaseous hydrogen, which is more cost-competitive than liquid hydrogen; however, if Taiwan aims to become a future importer of green hydrogen, it must begin early deployment of liquid-hydrogen infrastructure.

Global Carbon Market Moving Toward Convergence; Five Emerging Corporate Roles in Carbon Removal

The second session focused on carbon markets—covering carbon trading, carbon removal, and biochar-based carbon sequestration—outlining strategies for corporate participation.

Companies purchase carbon credits for regulatory compliance, supply-chain requirements, or internal emissions-reduction needs.

Nadine Lim, International Policy Analyst at the International Emissions Trading Association (IETA), noted that the number of carbon-pricing instruments has surged over the past 20 years. Carbon taxes and emissions trading systems now cover about one-quarter of global emissions. While early developments were concentrated in Europe and the U.S., Asia will drive growth in the coming years as many countries explore new carbon-pricing mechanisms.

Following the quality controversies in the voluntary carbon market (VCM) in 2021, transaction volume and market value dipped. However, referencing data from Ecosystem Marketplace, Hu Xiang-Yu noted that demand has returned since last year: carbon credit usage reached 182 million tonnes in 2024, indicating persistent market demand.

Hu stated that the VCM is undergoing a "2.0 transformation" as standard-setting organizations tighten methodologies and enhance governance, improving credit quality. However, the exact market recovery inflection point remains uncertain.

Lim added that new initiatives aimed at strengthening credit quality—such as the Integrity Council for the Voluntary Carbon Market (ICVCM) and its Ten Core Carbon Principles—are pushing the market toward higher standards. Many corporations are also signaling expectations for high-quality credits.

Hu outlined five potential roles for Taiwanese companies entering the carbon-credit market: Strategic management, Operational management, Project development, Data-driven services, Market brokerage and matching.

She cited Microsoft as an example: by strategically deploying capital, it has become the world's largest investor in carbon removal. Amazon, meanwhile, has launched carbon-credit procurement services, offering standardized purchasing assistance.

She emphasized that compared to emissions-reduction credits (e.g., renewable energy, forest conservation), carbon-removal credits command increasingly significant premiums.

Over the past two years, global carbon-removal prices rose 381% to US$19.5 per tonne, indicating growing market interest.

Carbon-removal technologies span nature-based and engineered solutions. Biochar ranges from US$200–300 per tonne, while direct air capture (DAC) ranges from US$100–700, with some exceeding US$1,000. Traditional nature-based reductions, such as forest conservation, remain as low as US$10–20, illustrating major price divergence across categories.

Hu noted that the carbon-credit market is undergoing a "2.0 transformation," with standard-setting bodies tightening rules and methodologies, thereby improving international credit quality. However, she added that it remains difficult to determine the precise inflection point for a full market recovery. For Taiwanese companies seeking to participate in the carbon-credit market, Hu outlined five potential roles: strategic management, operational management, project development, data-driven services, and brokerage or transaction matching. She cited Microsoft as an example—through strategic capital deployment, it has become the world's largest investor in carbon removal, adopting an investor-driven approach to support emerging technologies.

Carbon Removal Market May Reach NT$480 Trillion; Taiwan Has Entry Opportunities

Tank Chen, Co-Founder of CDR.fyi, which tracks over 90% of global carbon-removal data, reported that the average price of CDR credits reached US$320 per tonne in 2024, with total market size approaching US$2.5 billion (NT$75 billion).

As of May 2025, annual procurement volume exceeded 15 million tonnes.

With CO₂ accumulation since the Industrial Revolution, carbon-removal demand is rising rapidly. Tank noted that private-equity investments in the sector reached US$3 billion over the past three years.

In 2024, 137 suppliers recorded transactions, total delivery volumes grew 120%, and annual procurement rose 78% to 8 million tonnes.

McKinsey estimates that reaching net zero will require US$6–16 trillion (NT$180–480 trillion) in carbon-removal investments by 2050.

Tank emphasized that Taiwan can play key roles in the carbon-removal supply chain—such as component technology providers, project developers, petrochemical value-chain participants, financiers, and buyers. Currently, Taiwan lacks carbon-removal buyers, but local industries can explore their positioning.

He added that carbon removal currently accounts for just 6% of the carbon-credit market. As traditional energy-sector credits decline in volume and price, the market will shift toward high-quality engineered or nature-based removal. The 2030–2035 period may become the sector's breakout phase.

Carbon-removal markets prioritize verifiability, compliance, and trustworthy certification systems.

Tank noted that the global market now projects nearly NT$500 trillion in carbon-removal opportunities by 2050. He emphasized that Taiwan can play multiple strategic roles in this emerging sector—such as component technology providers, project developers, value-chain suppliers including petrochemical players, financiers, and eventual buyers. However, Taiwan currently has no domestic carbon-removal buyers, underscoring the need for industries to assess where they can position themselves within the carbon-removal supply chain.

Biochar Highlights Verification and Compliance; Taiwan's Guangtai Wins Multiple European Certifications

Biochar is among the most prominent carbon-removal solutions today. Taiwan's GuangTai Environmental Energy, the only Taiwanese company certified under the European Biochar Certificate (EBC), is also the first in Asia to obtain EBC agricultural and industrial certifications, CSI carbon-sink standards, and FSC certification.

Founder and CEO Peng Chun-Ming stressed that strict compliance is essential. EBC requires full traceability of feedstock, manufacturing processes, and material safety, with batch-level records and fully digitized monitoring, reporting, and verification (dMRV). All process data are uploaded in real time to European cloud systems, forming a trusted chain of verification. GuangTai's biochar delivers –2.625 kg of CO₂ reduction per gram.

"Compliance is everything—there must be no ambiguity," Peng said. Regarding potential market uncertainties under a Trump administration, he noted that GuangTai has focused on the European market from the start, where environmental and safety standards exceed those of the U.S.

Biochar can be applied in agriculture for soil improvement, and when aligned with SDGs, carbon-sink values can reach €300 per tonne (NT$10,200).

Beyond agriculture, biochar can be materialized into plastics, laptops, sports equipment, and cosmetics—creating brand premiums that traditional marketing cannot achieve.

Peng emphasized that Taiwan is uniquely positioned to materialize biochar into products due to its highly concentrated manufacturing supply chains, enabling conversion from biochar to carbon-reduction products within one hour.

Peng emphasized that the core of biochar lies in high standards and verifiability. Under the European Biochar Certificate (EBC), comprehensive testing is required for feedstock sources, production processes, and material safety, with batch-by-batch documentation. The entire process achieves full digital monitoring, reporting, and verification (dMRV), with all production data uploaded in real time to European cloud systems—thereby establishing a complete and trustworthy verification chain.