Cross-border grid connections are emerging as a key strategy to integrate renewables and accelerate global decarbonization. (Photo: iStock)
Taiwan, surrounded by water on all sides, operates an islanded power grid with no connections to neighboring countries. In the event of an energy crisis, it has no external support to fall back on. As a result, effective power management by the state-run utility Taipower has become essential. Yet as countries across the world deepen cross-border electricity cooperation to accelerate decarbonization, regional power grids are emerging as a major trend—one Taiwan can no longer afford to overlook.
In our special series Rewiring Asia, RECCESSARY explores regional grid developments around the world and assesses their relevance and feasibility for Taiwan, analyzing the key opportunities and challenges on the road ahead.
Cross-border grids rise as a tool for net-zero transition
The concept of regional grids—cross-border electricity networks that link renewable supply with demand centers—is gaining traction as countries search for efficient, scalable ways to decarbonize their energy systems.
Momentum has also reached Taiwan. At an October 2023 reception for the launch of an Indo-Pacific Strategic Think Tank, Taiwan’s Minister of Economic Affairs Kuo Chih-hui (郭智輝), floated the idea of joining the U.S.-Japan-Philippines-backed “Luzon Economic Corridor.” As part of this initiative, Taiwan could potentially invest in power plants in the Philippines and import green electricity to help meet its 2030 goal of achieving 30% renewable power generation.
Similar ideas surfaced during COP29 in Baku, Azerbaijan. One major initiative was the “Green Energy Zones and Corridors,” aimed at enabling long-distance power transmission between renewable energy-rich regions and major consumption zones through regional grid integration. These developments sparked renewed discussion about Taiwan’s future in a regional grid system.
Why regional grids are gaining momentum
What’s driving countries to link their national grids? According to RECCESSARY green power analyst Julia Hung, three main reasons are accelerating regional power grid development:
