Taiwan Frontlines: Phil Chen calls for political will on Taiwan’s energy security

Taiwan Current News (TCN), in partnership with the German Marshall Fund of the United States (GMF), produces the podcast series Taiwan Frontlines, which tracks global trends and explores how Taiwan connects with the world.

In the latest episode, Phil Chen (陳信生), CEO of Cold Electric, a battery technology company, said Taiwan’s semiconductor strength cannot be separated from its energy resilience. He argued that the island needs more transparent electricity pricing, rapidly deployable microgrids and deeper public-private cooperation to strengthen energy security.

Chen, who has written on Taiwan’s energy resilience, said the technologies needed to improve it are already available. The challenge, he said, is to create the political will, market incentives and public understanding needed to deploy them at scale.

Microgrids can move quickly

Chen said solar panels and batteries can provide a fast way to build local energy resilience. A microgrid for a small site could be built in two to three weeks, while a school-scale system could take about a month, he said.

That speed contrasts with large, centralized energy projects, which can require years to build and become operational. With government support for microgrid, solar and battery projects, Chen said, Taiwan could expand distributed energy capacity relatively quickly.

Chen mentioned that the core utility of microgrids reaches far beyond routine power supply, explaining that local generation and storage autonomy can enable critical infrastructure to maintain uninterrupted operations during major external disruptions.

Battery security is national security

Chen said batteries are becoming an increasingly important part of global energy security, but the technology also creates new supply-chain and cybersecurity concerns.

He noted that the United States and Japan are seeking to reduce dependence on Chinese battery suppliers and diversify their sources. According to Chen, only a small number of economies, led by China, South Korea and Taiwan, can manufacture large batteries at scale.

While Taiwanese battery makers could benefit from US policies restricting the role of foreign entities of concern, or FEOCs, in battery supply chains, Chen noted that securing supplies represents only one dimension of a larger strategic puzzle.

Battery-management systems and the software that controls them must also be protected, particularly when batteries are deployed at utilities or government buildings, Chen said. Because batteries can catch fire, he said, a malicious actor that gains control of the software could potentially turn them into a weapon.

“Cybersecurity for the battery management system … is of national security importance too,” Chen said.

Price should reveal costs

Chen argued that Taiwan’s subsidized electricity prices obscure the true cost of power and make it harder for consumers, investors and businesses to make informed decisions about energy use and investment.

He said electricity demand and costs vary by time of day. If consumers understood the difference between charging an electric vehicle at 2 a.m. and doing so after returning home at 6 p.m., they could adjust their behavior and help manage pressure on the grid.

“Somebody will pay the cost, whether it’s hidden or transparent,” Chen said. He called for policy that makes the costs and consequences of electricity choices clearer, rather than leaving them embedded in subsidies.

Chen cited US policy discussions requiring hyperscale data center operators to secure independent energy supplies, saying that this model increases public transparency, fosters civic input, and drives private capital toward scalable energy solutions.

A public-private energy strategy

Chen said Taiwan’s energy challenges require deeper public-private collaboration, comparable to the cooperation that helped establish Taiwan Semiconductor Manufacturing Co. (TSMC) decades ago.

The first step, he argued, is to acknowledge the problem openly. Government, businesses and citizens can then discuss practical solutions, drawing on existing technology, private capital and Taiwan’s engineering strengths.

Chen said the country should not assume that government alone must solve every energy challenge. With political will, transparent policy and market mechanisms, he said, Taiwan can build a more resilient energy system.

For more in-depth coverage, listen to Taiwan Frontlines on NOWNEWS’ official YouTube channel.