Due to Taiwan’s active energy transition, Neo Solar Power (NSP) is optimistic regarding the domestic solar market. Next year, it will significantly increase domestic solar farm investment, expand large-size solar cell production capacity, and build its own energy storage AFC equipment system. NSP capital expenditures in 2022 are expected to reach NT$7.1 billion and was approved by the board of directors on the 27th.
Taking into account purchase order requirements and strong feedback from the market, NSP's production capacity needs to be further expanded to meet market demand. NSP is expected to invest in new capacity for large-size M6 9-busbar and M10 10-busbar battery products. Investment in 2022 is expected to be NT$7.1 billion. After expansion, Taiwan’s solar cell production capacity will reach 1.3GW with modules reaching 1.2GW to meet the growth demands of the domestic market. NSP is expected to acquire a market share of more than 40% in Taiwan this year.
NSP has completed approximately 30MW of tenders for the Taiwan Water Corporation, Tainan parking lots, and Kaohsiung’s Cijin Life Memorial with plans to connect to the grid at the end of this year. Looking forward to 2022, NSP has already secured project sites including public rooftops, outdoor ball courts, Taiwan Railways and Taiwan Water solar projects, landfills, and large detention ponds across Taiwan. New grid connections will reach 140MW and will contribute approximately NT$780 million to future annual revenue with NT$6.1 billion invested next year. In addition, NSP will develop an approximately 100MW fishery-solar hybrid farm and develop solar farms of approximately 200MW in subsidence areas and poor farmland. Solar farms totaling 300MW should be developed throughout the year, contributing greatly to Taiwan’s green energy creation.
Since energy storage systems play an extremely important role in regulating the smooth output of electricity and reducing impact on the grid, as the proportion of renewable energy sources increases, energy storage systems will become more ubiquitous. In addition to actively participating in the tender for Taipower's energy storage system to participate in ancillary services, NSP has also begun to build its own AFC energy storage equipment. NSP is expected to build a 12.3MWh self-sustained system with a total investment of approximately NT$260 million to be completed in the third quarter of 2022. Upon completion, NSP will become the country's largest supplier of comprehensive green power solutions for energy creation and energy storage.
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