AI's Massive Power Demand Raises Alarms! Energy Management Act Passes Third Reading, New AIDCs Required to Have On-site Power or Energy Storage

On the 21st, Taiwan's Legislative Yuan passed the revised amendments to the Energy Management Act. The Ministry of Economic Affairs explained today (24th) that this revision aims to comprehensively enhance energy management efficiency and enforce energy-saving regulations by publicly disclosing energy sales statistics, strengthening corporate energy supply resilience, empowering local governments with energy-saving inspection tools, and increasing penalties for violations. A total of 15 articles were amended or added in this revision, with the newly introduced obligation for large new energy users to have on-site power generation being the most notable. The Ministry will promptly initiate revisions to related subordinate regulations to ensure smooth implementation of the new law.

The Ministry of Economic Affairs stated that the revision of the Energy Management Act focuses on four key areas:

Public Disclosure of Energy Sales Statistics: Drawing on international best practices, energy sales statistics will be disclosed in de-identified form, while ensuring protection of business secrets and personal data. This will help the public understand domestic energy consumption patterns, deepen and support energy-saving strategies, and provide a data foundation for energy education and public communication.

Mandatory On-site Power for Large New Users: In response to the rapid development of the AI industry, the establishment of data centers and electronics firms as large energy users has placed significant strain on the public power grid. The new law, referencing international practices of corporate self-generation, mandates that new or expanded energy-intensive facilities above a certain capacity must install self-owned power generation or energy storage systems. This strengthens corporate energy self-sufficiency and reduces reliance on the public grid.

Expanded Local Government Energy-saving Inspection Capacity: To strengthen legal enforcement and ensure compliance with energy-saving measures, this revision empowers local governments to delegate energy-saving inspections to professional agencies or certified engineers. This addresses shortages in local inspection manpower and technical expertise, enabling central and local authorities to jointly implement energy management.

Increased Penalties and Public Naming of Violators: Recognizing that previous penalties under the Energy Management Act were no longer appropriate for the current context, this revision significantly raises the maximum fines. Additionally, for violations involving consumer rights, a new provision allows the public disclosure of the names and violations of offending companies, encouraging greater corporate compliance with energy-saving regulations.