Interview with Taya's Chairman Shen, Shang-Hung / 3E Strategy and Seizing Net Zero Opportunities
2024/06/24
Interview with Taya's Chairman Shen, Shang-Hung / 3E Strategy and Seizing Net Zero Opportunities
Taya Chairman Shen, Shang-Hung Reporter: Hsiang-ju Chi / Photography
Taya Chairman Shen, Shang-Hung Reporter: Hsiang-ju Chi / Photography
As Taya(1609) approaches its 70th anniversary, the global green energy wave is gaining momentum. Taya is capitalizing on this trend and taking early steps to transition from a wires and cables manufacturer to a leading brand in energy integration, creating an energy management chain empire that is beginning to bear fruit.
Taya Quick Facts
Chairman Shen, Shang-Hung outlines Taya’s grand vision. Moving forward, Taya will continue to implement its 3E strategy-Emerging, Energy, and ESG-to accelerate progress towards the 2050 net-zero carbon emissions goal. Regarding investment strategy, Taya Group, through Taya Venture, is developing a third growth curve with a long-term plan spanning over ten years. Past investments in electronics, biomedical fields, and innovation have yielded positive results. Future investments will align with government initiatives, focusing on areas such as semiconductors, AI, defense, security, next-generation communications, and medical biotechnology, all aimed at achieving global success. Below is a summary of Chairman Shen, Shang-Hung’s interview:
Expanding Core Business to Offer Comprehensive Services
Q: Could you share Taya’s successful experiences in transformation and innovation, as well as your vision and roadmap for the next five to ten years? A: This year marks the 69th anniversary of our company, which means we've been in business for quite a long time. Around 2013, we began contemplating how we could expand within related industries. Taya’s core businesses are wires and cables, and magnet wires—one for electrical transmission, and the other used in motors and electronic components, essentially for energy conversion.
We started thinking from this perspective: perhaps Taya could venture into energy generation. Of course, in the beginning, it was all about exploring and learning as we went. When the government initially promoted offshore wind power demonstration units, Taya was eager to participate. We were bold enough to form a team within the company and secured the first alternate bid.
However, in 2013 and 2014, the government’s push for offshore wind power was not very strong. It wasn’t until former President Ying-wen Tsai took office that things accelerated. After researching offshore wind power, we realized that the opportunity cost did not meet our expectations. If we had invested all our resources there, we wouldn’t have been able to pursue other projects.
Still, this opportunity sparked significant motivation within us, and we began to consider the idea of becoming a “leading brand in energy integration.” This direction was also influenced by the fact that the domestic wires and cables industry had already matured, with the highest voltage reaching 345,000 volts. With the idea of energy integration in mind, Taya initially started with small rooftop solar installations. Later, we fortuitously met Hengs Technology, an EPC company for solar power systems. We shared the same vision for developing solar energy, so we joined forces, and Taya invested in Hengs Technology. Step by step, Taya has now become a leading brand in the energy chain, capable of providing comprehensive solutions for energy generation, transmission, conversion, storage, and management.
Taya has also established a long-term strategy, focusing on the 3E strategy (Emerging, Energy, ESG), strengthening our core business while fostering new opportunities in venture capital. At the same time, we aim to fulfill our vision of becoming a "A Creator of Harmonious Environment and Pristine Homeland." Our efforts in promoting renewable energy, beyond solar power, will not cease, as we accelerate progress towards our 2050 net-zero carbon emission goal.
Developing Energy Storage Equipment and Large-Scale Projects
Q: With the global surge in green energy, Taya is a leader in this field. Specifically, could you elaborate on the progress, next steps, plans, and goals for Taya's solar and energy storage projects? A: Taya Group currently operates 74 rooftop and ground-mounted solar power plants with a total installed capacity of 212 MW. In addition to promoting photovoltaic development, energy storage equipment is also a key focus for us.
In the solar business, we are accelerating the development of large-scale projects in the central region, including the Mailiao Fishery and Electricity Symbiosis (FES) plant in Yunlin, with a capacity of 185 MW. We expect to obtain the setup permit by the end of this year, with a grid connection planned for 2026. The Jhih-Guang Phase 2 project, with a capacity of 35 MW, is expected to connect to the grid in the second quarter of next year. Additionally, in Xuejia, Tainan, there will be a 30 MW solar and 20 MW energy storage bidding project in the second half of this year. Overall, we aim to reach a target of 500 MW by 2026.
For energy storage, construction of the 100 MW Infinity Energy Storage Technology project (E-dReg) in Taichung began in March this year. We expect it to be operational on the Taiwan Power Company Energy Trading Platform by June 2025, providing an estimated daily total energy storage capacity of around 200,000 kWh.
Additionally, we plan to participate in Taiwan Power Company’s regional grid energy storage plan and the university campus energy storage microgrid plan. We will also develop large-scale energy storage active balancing battery management system products and promote other industry-specific energy storage projects, with a goal of reaching 180 MW of energy storage capacity by 2025.
In addition to actively expanding our solar and energy storage efforts, we are also exploring the potential of geothermal and wave energy. Regarding geothermal energy, Taiwan's geographical conditions and future prospects are promising, and we believe Taiwan must develop geothermal energy. Once it becomes widespread, it will grow rapidly. Taya has already begun assembling a team and making investments, with an initial investment of around NTD100 to NT$200 million.
As for wave energy, we see great potential and opportunities in the future. However, since the technology is not yet mature, Taya is not in a hurry. For now, our primary focus is on advancing solar and energy storage.
Operational Overview
Ten-Year Plan to Focus on Cybersecurity and Pharmaceuticals
Q: Taya Venture has delivered significant profits to the company in recent years. What industries will Taya focus on for future investments, and what plans are in place?
A: Taya Group, through Taya Venture, is charting a third growth curve with a long-term plan spanning over ten years. Fortunately, we achieved some positive results last year. Currently, our primary focus is on developing sectors such as cybersecurity and pharmaceuticals. We are also closely monitoring emerging industries, including electronic technology applications and semiconductor-related sectors. For example, our recent investment in "Tron Future Tech" focuses on products like satellite synthetic aperture radar, drone detection radar, and satellite communication payload systems, all of which have yielded substantial returns for the company.
Overall, our future investment strategy will align with government initiatives, concentrating on the "Five Trustworthy Industries," which include semiconductors, artificial intelligence, military industry, security surveillance, next-generation communications, and the medical biotechnology sector. Additionally, we are actively investing in venture capital funds and establishing our own fund of funds (FOF).
Furthermore, Taya Venture will continue to emphasize the group's third E, which is ESG. In December 2023, Taya's board approved an investment in the Sustainable Innovative Energy Technology Industry Fund, with an estimated investment of over NTD450 million, to initiate the development of projects related to energy conservation, carbon reduction, and environmental sustainability.
Q: With the new government and its fresh team, what kind of support do you hope to receive, or what advice would you offer to the new administration? A: The government has done well in many areas, taking into account various industries and monitoring the market. Taiwan’s capital is increasingly abundant, and this year’s economic growth outlook is generally positive. From an industry perspective, if I were to offer any advice, it would be that administrative processes could be faster and more efficient. Time is the most "real cost" for industries. While the government often focuses on strengthening or improving regulations, there seems to be less emphasis on time and speed. I hope the new government can accelerate administrative processes, enabling industries to develop more rapidly and vigorously.
Regarding new energy, we are pleased to see the government actively promoting energy transformation. The development of green energy is an irreversible trend. Taya Group, which started with wires and cables, has always been deeply concerned about the interaction between this land and its people. As we approached our 60th anniversary, we extended our core business and repositioned ourselves as a leading brand in energy integration and a "Catalyst for a Friendly Environment and a Beautiful Home," trusted by employees, customers, shareholders, and society. Thus, our green energy business has gradually taken shape, focusing on the solar energy sector after various attempts, and now we have a complete energy chain layout.
Supporting green energy policies aligns with our core business and our commitment to this land. If the green energy policy is well-executed, all the people of Taiwan will benefit, and Taya will continue to strive toward this goal.
Shen, Shang-Hung's Key Points of Discussion
Full Source: Economic Daily News https://money.udn.com/money/story/10871/8049779