TAIPEI (Taiwan News) — Taiwan Power Company (Taipower) will introduce new rates for large electricity users after the Lunar New Year, CNA reported on Saturday.

Taipower said the new electricity rates are expected to encourage 24-hour electricity-intensive industries, including semiconductors, petrochemicals, and steel sectors, to install on-site energy storage systems. These systems allow excess electricity to be stored during off-peak hours and then used during peak demand periods, per Yahoo News. 

According to the Energy Administration, the cost of energy storage systems is approximately NT$12.5 million (US$416,667) per MWh. Factoring in the system's lifespan and energy losses during operation, the cost to access stored energy is estimated at NT$7.1 per kWh. 

The administration believes a price difference of NT$7 to NT$8 between peak and off-peak electricity rates is necessary to incentivize businesses to invest in these systems.

Taipower will implement a new non-summer peak period from 3 to 9 p.m., with electricity rates set at NT$9.9 per kWh. The remaining 18 hours will be classified as off-peak, at NT$2.39 per kWh.

The company said the peak electricity rate during the summer months will increase to NT$10.20 per kWh, while the off-peak rate will be set at NT$2.61 per kWh. It said the price difference, exceeding NT$7.5, is expected to make energy storage equipment more cost-effective.

The company added the rate adjustment is expected to help businesses stabilize their in-factory power usage. This measure could also enable Taipower to distribute electricity demand more evenly, reducing power plant operational costs.