TAIPEI (Taiwan News) — Aerospace Industrial Development Corp. said Monday that it secured a substation upgrade contract from Taipower for a project in Hualien, CNA reported.
According to Taipower, substation expansion is challenging, and the widespread use of underground cables in Taiwan has constrained electricity transmission capacity. The company noted that with the government aiming for renewable energy to account for 20% of power generation this year, maintaining a stable electricity supply is crucial as more renewable sources are integrated into the grid.
As part of the project, AIDC will install Static Synchronous Compensator (STATCOM) systems. The company said this power device helps stabilize the power grid and is considered a key tool in advancing green energy integration.
The company said the project will cost NT$2.35 billion (US$75 million). The budget will also be used for purchasing other related equipment, land redevelopment, system testing, maintenance, and personnel training.
The project is expected to be completed and integrated into the power grid by December 2027. Following final testing in November 2028, the substation will be handed over to Taipower.
In March, the company launched a 2-megawatt wind and solar Power Island energy storage system capable of providing an estimated six hours of uninterrupted power. AIDC Chair Hu Kai-hung (胡開宏) said the company utilized its aerospace-level electrical control technology to develop a compact, standalone power device suitable for residential areas, industrial parks, and disaster relief efforts.
In 2022, the company replaced coal-fired generator units at a Taipower plant in Miaoli with gas turbine generators. The upgraded equipment helps ease power supply during peak demand periods and can also use hydrogen as a fuel source, helping reduce carbon emissions.
Since 2022, Taipower has been promoting a program to strengthen the resilience of its power grid. The company is investing approximately NT$560 billion over 10 years to install STATCOM systems at 11 substations across Taiwan.
