Taiwan New Energy Stock Investment Landscape: From Green Energy Concepts to Practical Tips

As a key economy in the Asia-Pacific region, Taiwan’s rise in the new energy sector is becoming a new market focus. While Europe and the US have already increased the share of renewable energy to over 30%, Taiwan’s new energy market is still in its infancy, which means there is enormous growth potential gradually unfolding.

Whether it is policy dividends, technological breakthroughs, or the broader context of global energy transition, Taiwan’s concept stocks in new energy are all riding the wave. For investors, understanding the logic of this sector and grasping the key company developments may be the key to capturing the next round of growth.

Under the Wave of Global Energy Transition, Opportunities and Challenges Facing Taiwan

According to data from the International Energy Agency, in 2022, the share of renewable energy in the global power structure reached nearly 30%, an increase of 1.5% compared to the previous year. Behind this figure is active promotion by developed countries—European nations like the UK, Germany, and the Netherlands all have renewable energy shares exceeding 40%, while among major Asian economies, China, Japan, and Thailand have shares of 32%, 22%, and 18%, respectively.

But what about Taiwan’s current situation? Renewable energy accounts for only 8%, far below the regional average. This seemingly awkward number actually reflects Taiwan’s huge potential in the new energy market— the larger the space, the more significant the growth.

Current State of Taiwan’s Energy Structure: Nuclear Power Phased Out, Green Energy Takes Over

According to the Ministry of Economic Affairs’ Energy Bureau statistics, Taiwan’s total power generation in 2022 was 288.2 billion kWh, with coal and natural gas accounting for a combined 80.88%, renewable energy contributing only 8.27%, and nuclear power at 8.24%.

However, a turning point has already appeared—the government’s “2025 Non-Nuclear Homeland” goal means that within the next 2 to 3 years, nuclear capacity must be replaced by other energy sources. This creates an unprecedented demand opportunity for the new energy industry. According to the target plan, renewable energy should account for 15.1% by 2025, nearly double the current level.

More importantly, energy security is a key dimension. Taiwan’s energy dependence on imports is as high as 97.3%, with domestic energy production only accounting for 2.7%. In today’s context of escalating geopolitical risks and frequent fluctuations in international energy prices, accelerating the development of domestic renewable energy has become a strategic necessity.

Policy-Driven Green Energy Blueprint

The Taiwanese government has outlined a clear roadmap for the new energy market—by 2025, the installed capacity of solar photovoltaic systems will reach 20 GW, offshore wind power will reach 5.6 GW, supplemented by geothermal and small hydropower. This is not an empty promise but a plan supported by concrete investments.

Take grid upgrades as an example. Taipower announced in September 2022 a “Resilient Grid Construction Plan” with an investment of NT$564.5 billion, opening a ten-year order window for related companies. Every step of the energy transition is accompanied by investment opportunities along the industry chain.

Taiwan’s New Energy Concept Stocks Scan: Who Are the True Winners

1. Delta Electronics (2308): Dual Engines of Energy Storage and Electric Vehicles

When mentioning Delta Electronics, most people think of electronic products, but its role in the new energy sector is often underestimated. Its core advantage lies in energy storage systems—solar and wind power generation outputs are highly variable, and energy storage is precisely the key to making green electricity reliable.

Delta Electronics has already gained an early lead in this field. Among the top 20 global automakers, 75% are its customers. As the penetration rate of electric vehicles increases, automakers’ certification demands for electronic control systems also rise, opening a new growth curve for Delta Electronics.

Data confirms this judgment—its consolidated revenue in June 2023 was NT$34.825 billion, an 8% increase year-over-year, reaching a new high for the same period. Over the past three years, revenue has shown accelerated growth: NT$38.443 billion in 2022 (up 22.17%), NT$31.467 billion in 2021 (up 11.35%), and NT$28.261 billion in 2020 (up 5.40%). The faster growth reflects the gradual contribution of new business segments.

2. SORWIN Energy (6806): From Loss to Breakout

Founded via IPO in November 2022, SORWIN Energy focuses on investment, development, and operation of solar and wind power projects. Its first-year revenue was NT$4.301 billion, seemingly modest, but the outlook changed dramatically in 2023.

The most convincing data is monthly revenue—surpassing NT$774 million in April, mainly driven by recognition of income from Taipower’s offshore wind project Phase II. As this project’s revenue will be gradually realized over the next two years, the company expects its profit scale to grow significantly. This is a typical “wait for realization” investment target.

3. Hwa Chong (1519): A Win-Win Player in Grid and Charging Stations

Hwa Chong holds two roles—long-term supplier to Taipower (providing transformers and other products) and a leading player in Taiwan’s electric vehicle charging station market, with nearly 20% market share.

Taipower’s NT$564.5 billion grid upgrade plan means Hwa Chong’s order pipeline is ample. Meanwhile, as EV ownership increases, the gap in charging infrastructure is widening. Data from the first half of 2023 already shows signs—revenue in June reached NT$1.403 billion, up 50.15% year-over-year; total revenue for the first half was NT$4.643 billion, up 34.96%, both hitting new highs.

However, it should be noted that Hwa Chong’s stock price has already surged by 242.56% since the beginning of the year, and there may be short-term correction pressure. Investors should wait for more favorable entry points.

4. China Sun Energy (5483): Beneficiary of the US Inflation Reduction Act

In 2022, the US Senate passed the Inflation Reduction Act, allocating US$369 billion to support energy transition, with solar energy receiving key support. The US Solar Energy Industry Association predicts that this act will boost US solar installations by 69% over the next decade.

As a major Taiwanese solar manufacturer, China Sun Energy naturally benefits most from this policy dividend. Its solar business revenue surpassed NT$10 billion in 2022, reaching NT$10.25 billion, a 34.5% increase. However, upstream silicon materials and wafer prices are under pressure, and the industry is entering a correction phase. Investment strategies should focus on the timing of upstream raw material price rebounds.

The Reality of New Energy Investment: Opportunities and Traps Coexist

Why Invest

• Strong Policy Certainty: Many governments have incorporated energy transition into national strategies, with continuous supportive policies
• Clear Demand Side: Whether EVs or green power grid integration, demand-side policies are well-defined
• Continuous Cost Reduction: The levelized cost of solar and wind power now competes with traditional energy sources
• ESG Investment Wave: Renewable energy companies are more likely to attract institutional investors

Risks to Watch

• Policy Uncertainty: Energy policies often change with political cycles, and policy reversals can undermine industry confidence
• Volatility in Stock Prices: Emerging sectors are prone to speculative trading, with large short-term fluctuations
• High Stock Selection Difficulty: Although the industry has broad prospects, competition is fierce, with significant differences between leading and second-tier companies
• Unstable Performance and Dividends: Many new energy companies are in expansion phases, with long profit realization cycles and limited dividend appeal
• Lack of Hedging Tools: Related options and derivatives are scarce, making risk management difficult

Investment Recommendations and Operational Ideas

1. Long-term Mindset Is Essential: New energy is a century-long project, not short-term speculation. Investors should be prepared to hold for more than 3 years.

2. Control Positioning and Pace: Focus on emerging green energy companies with volatile performance; avoid heavy concentration. Use phased building and regular review strategies for more stability.

3. Follow Policy and Data: Keep an eye on government energy development reports, corporate order announcements, upstream raw material prices, and other leading indicators.

4. Favor Leading Companies: When selecting stocks, prioritize those with core competitiveness, existing order support, and stable management.

5. Diversify Risks Appropriately: Mix renewable energy stocks with traditional energy and utility stocks to balance the portfolio.

Summary

Taiwan’s new energy market is driven by both policy dividends and market demand, creating a rare opportunity for investors to participate. From the current situation, increasing the share of renewable energy from 8% to 15% is not a dream but a policy commitment. Corresponding industry chain companies—whether in energy storage, grid, charging, or photovoltaics—will all benefit from growth momentum.

However, the larger the growth space, the greater the need for risk management. The key to investing in new energy stocks is not chasing after gains or panic selling, but understanding industry logic, grasping company fundamentals, and knowing your own risk tolerance. Mastering these three points will enable you to truly profit from the wave of energy transition.