Facing the AI Power Surge! Experts Analyze How Behind-the-Meter Storage Helps Taiwanese Enterprises 'Shave Peaks and Fill Valleys'

The advancement of AI is dramatically reshaping global industrial and economic trends, simultaneously creating challenges for energy supply. As a central node in the global technology supply chain, Taiwan faces energy management as an unavoidable challenge for businesses. Feng Chi-Wei, Executive Managing Director at EY Financial Advisory Services Co., Ltd., points out that energy forms the foundational layer of the AI industrial chain. He highlights two key factors—changing electricity consumption patterns and the rising share of renewable energy—that are making behind-the-meter (BTM) energy storage a pivotal element in Taiwan’s energy development.

The 'AI Five-Layer Cake Theory' proposed by the leading AI chip company emphasizes that AI is a complete industrial ecosystem spanning from foundational resources to top-level applications. The five layers, from bottom to top, are: the foundational Energy Layer, the Chip Layer that converts electricity into computing power, the Infrastructure Layer, the Model Layer, and the Application Layer. The biggest bottleneck in AI development often lies at the base, and the Energy Layer—the very foundation—is undergoing qualitative transformation amid recent macroeconomic and industrial shifts.

At a recently held Smart Grid Investment and Financing Practical Seminar, Feng Chi-Wei noted that energy issues are no longer solely government or Taipower-led infrastructure concerns. They are increasingly extending into corporate energy management, BTM storage, and new business opportunities involving financial institutions. The next phase of smart grids isn’t just about upgrading transmission networks—it’s also about whether enterprise-side energy assets can be effectively managed, quantified, and turned into financeable cash flows.

Feng explains that smart grids broadly consist of three tiers: On the generation side, low-carbon power generation, renewables, and related low-carbon technologies; on the grid side, frequency control, voltage regulation, front-of-meter (FOM) storage, and dispatchable resources; and on the demand side, behind-the-meter (BTM) storage, energy management systems (EMS), and behind-the-meter microgrids. Among these, BTM storage—battery energy storage systems installed behind a company’s or user’s electricity meter and managed by the user—is closest to corporate investment decisions and holds the greatest potential to form privately financeable business models.

Two critical factors elevate BTM storage to a cornerstone of Taiwan’s energy evolution. First is the shift in electricity usage patterns. According to Taiwan’s Ministry of Economic Affairs’ 2026 power supply and demand report, future electricity demand forecasts now incorporate economic growth, semiconductor fab expansions, AI data centers, and deep energy efficiency measures. Annual electricity demand is projected to grow at around 2.5% between 2026 and 2035. Additionally, as daytime solar power generation capacity increases, supply pressure is gradually shifting from daytime to nighttime peak hours, requiring the system to have more flexible dispatchable resources.

Second is the rising share of renewable energy. In 2025, Taiwan’s annual combined wind and solar power generation is expected to reach approximately 29.54 billion kWh—a substantial increase from 2016. While the rapid growth of renewables supports decarbonization, it also demands greater flexibility in grid dispatch. BTM storage can charge when power supply is abundant and discharge during peak periods or times of high supply stress, helping enterprises achieve 'peak shaving and valley filling.'

Feng analyzes that BTM storage offers multiple benefits: reducing electricity bills, minimizing contracted capacity fees or overuse penalties, and supporting critical equipment during external power anomalies, voltage fluctuations, or short-term outages—thereby reducing operational losses. When further integrated with solar PV, backup generators, and energy management systems, it forms a behind-the-meter microgrid. This transforms it from a mere cost-saving tool into foundational infrastructure ensuring uninterrupted business operations.