Energy markets face regulatory shifts in Taiwan and China

In Taiwan, the Legislative Yuan has passed an amendment to the Energy Management Act, requiring large-scale energy users who expand their electricity capacity to install self-use power generation or energy storage equipment. The Energy Administration is tasked with developing detailed regulations, including specific thresholds, installation ratios, and timelines, within six months of the law's promulgation. Companies such as Hongde Energy have reported an increase in inquiries from businesses seeking to evaluate storage solutions and investment models, including leasing and profit-sharing.

In China, Guangxi has introduced new rules for 2027 mechanism electricity pricing for renewable energy projects. This follows a period of significant volatility in the Guangxi power market, where electricity retailers faced combined losses of 645 million yuan in the first quarter of 2026 due to geopolitical shocks affecting gas prices. To mitigate risks in the spot market, renewable energy firms are utilizing mechanism pricing to secure guaranteed revenue floors. The new 2027 policy tightens regulations by adjusting effective utilization hours and excluding certain distributed solar projects from the mechanism.