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| Author | Alan Tu |
| Updated | February 10, 2022 |
InfoLink published the latest Taiwan module shipment ranking for 2021, which remains the same as in the preceding year. URE secured leading position with stellar performance in domestic shipping volume and abundant overseas orders. TSEC, virtually having as much shipping volume as URE, was closely behind. Calculating based on the 1.55-1.6 GW of module demand, as per data from InfoLink, the two manufacturers accounted for more than 70% of market share, followed by AUO, Motech, and Gintung.
Raw material shortage pushed up module prices in 2021. But Taiwan still saw an installation rush in the fourth quarter of the year, thanks to prompt governmental response to increasing production costs. In June 2021, the government allowed projects being connected to the grid in the second half of the year applicable for FIT rates of the first half, which are the more generous. In October 2021, the government introduced perquisite, resulting in an installation rush in the fourth quarter. The robust demand sustained annual shipping volumes, driving local module production output to 2 GW.
The Bureau of Energy updated FIT rates on January 28. Under the new policy framework, the rates will be different in the first and second half this year, placed at NT$ 4.0031-5.8952/kWh in the first half, and NT$ 3.8680-5.7848/kWh in the second. Various perquisites are available for projects meeting different qualifications. Overall, FIT rates in the first half saw YoY increases, and 3-0% of slight decreases, as compared to the marked-up rates last year.
This year, module makers should be less pressured in terms of production costs, as raw materials prices are expected to fall gradually on a quarter basis. With price and product format advantages, imports of modules from Southeast Asia increased. Doubled with this year’s FIT rates, Taiwan sees upside momentum for its PV installation. and is estimated to see 2 GW of module demand in 2022.
Given projects filed last year for grid connection by April and enticing FIT rates boost end user demand, installation volume in the first half will be higher than usual. Production capacity of all Taiwanese module makers are fully booked for the first quarter. In the meantime, the energy storage market is seeing headway. As manufacturers proactively participate, InfoLink forecasts a 150 MW of ESS installed capacity for Taiwan this year, a big stride towards becoming a GW-scale market.
Energy storage market is growing rapidly in Taiwan. InfoLink is launching “1Q22 Taiwan Energy Storage Market Report” in March. For sample or more information, click the link below or contact us at: [email protected]