Press Release

Smart Energy Conservation Is Tatung’s Future Business Plan

Below is the interview that Tatung's gernal manager Wen yen K. Lin had with EBC News after 2014 Smart City Summit & Expo.

Q: In the past 96 years since Tatung was  founded, the core business has always been house appliance. Why did the company switch its core business from house appliance to smart energy conservation?

A: This decision is made after following the market trend and continuous innovation. Now, smart energy conservation is the field that Tatung put high value on.Governments all over the world actively establish policies of reducing energy consumption and carbon emission due to global warming has taken lives by causing severe cold or hot weather. Corporations also notice that global warming brings damages to humans therefore they adjust their business plan in order to respondassisted Taiwan Power Company to establish power infrastructures and integrated engineering and industrial motor, and house appliance provides solutions of energy conservation to governments, institutions, schools, corporations, commercial buildings and, even residential houses. Tatung is not only follows government policies but also answers to the market’s demand.

Q: Tatung is the only Taiwanese A: The key of smart energy conversation is the power management system which smart meter is a part of it. The power management system could monitor power usage by connecting to computers.

If every Taiwanese household installs smart meter, Taiwan Power Company could track smart meters and study the power usage of different areas for adjusting the power distribution.


Q: Could you system?

A: According to Taiwan Power Company’s annual report, industrial sector power usage dominated 60%, commercial sector usage dominated 10%, and household sector usage dominated 30%. Currently, Tatung has assisted Taiwan Power Company to install smart meters and conservation systems for many factories. So far Taiwan Power Company has the ability to track 60% of total power usage of  Taiwan. In the future, Tatung will follow Taiwan Power Company’s schedule to install smart meters for households and corporations. In addition to installing smart meters, other works are needed to be processed so the goal of power saving could be accomplished. For example, assisting factories to install energy consecration system and monitor system.   

Smart energy conservation could be divided into two sectors: green energy product and power management system. These two sectors could make energy conversation more efficient. Tatung’s house appliance products could save 30% power. High efficiency motor, Variable-frequency Drive, and transformer could save more power than before. Many could be improved through system management and product’s energy saving.


Q: Does the penetration of smart energy conservation increase due to the raised on electricity fee in last October by Taiwan Power Company?

A: Inquiries about this market is more frequent. Through co-organizing 2014 Smart City Expo with Taipei Computer Association, we found that visitors’ response is more overwhelming than we expected. It is obvious to see that smart city, smart energy conservation, smart transportation, smart healthcare and the other fields are subjects that people pay attention to.


Smart City Expo is the platform of gathering industries’ participation to expedite smart city development.

Q: Smart energy conservation has become a trend because governments all over the world demand it and actively develop it. Governments rely on corporations to engage related smart city constructions. In other words, corporations provide knowledge and technologies to governments. Only the corporations with strong advantages could assist the country to achieve the efficient smart energy conservation. We know Tatung focuses on smart energy conservation and Advantech focuses on smart healthcare.


Q: Are there other corporations participating in related industries?

A: This year’s Smart City Expo will be held at Taipei World Trade Center Nangang Exhibition Hall. It is organized by Taipei Computer Association and the major co-organizers are Tatung (smart energy conservation), Advantech (smart healthcare), Chunghwa Telecom (smart retail), Institute for Information Industry (smart transportation), IBM Taiwan (smart buildings), and Taiwan GIS Center provides national geographic information. In the future we could use geographic information to prevent and anticipate disasters. Smart city includes many sectors for example, transportation, healthcare, education, energy conservation… etc. Each corporation provides their coretechnologies and solutions to plan the blue print of smart city.   


Of course, only corporations put effort in smart city development is not enough, we also need government to makepolicies to support us. We think our nation already has a specific plan of reducing energy consumption and carbon emission. The government should set policies and schedule for us corporations to follow therefore our nation can truly implement energy conservation. We helped many municipal governments built solar system. Solar power is a clean energy, but to manage solar system, integration with other systems is needed. We established solar systems in many schools in New Taipei City and it is very important for us to understand how to manage them. Currently, we connect each solar system and deliver information to management center through Internet and  monitor them each day; it is very important to cooperate with local governments and gains their supports. For the central government, there are high energy consumption corporations that need government’s investment for building energy conservation system. Government should consider help these corporations to build conservation systems by investing in them.


Q: Taipei City was selected as the intelligent community of the years by ICF, as well as Taichung city in 2013. Does Taiwan act as the international leader in the world’s smart city development?

A: America, Europe, and other developed countries established smart cities earlier than Taiwan, but Taiwan is considered as one of the leading countries on smart city development.


Q: Does Tatung plan to export technologies and solutions to other countries?

A: Currently Tatung cooperate with local corporations in other countries. We considered the experience we learned in Taiwan for promoting smart meter and smart energy conservation system. Tatung efficiently exports Taiwan's experience to abroad by combing our specialized technologies and local corporations' regional superiority.


Q: Will Tatung come up with new applications for smart energy conservation in the future?

A: We will keep developing smart energy conservation. For example, telecom technology from 2G internet, 3G internet, to the current 4G. With wider band, there are more functions we could use. We used telephone in the past, and then we delivered digital data, now we could deliver digital video through broadband internet. Information like national geography, medical data, video & audio need broadband internet to deliver. I.e. Police could use smart transportation system through broadband internet to locate car thieves.


Government needs to guide smart city development by setting policies

Q:  For last year’s CST Award, Tatung and Chunghwa Picture Tubes were selected as the top 50 sustainable corporations. Through Tatung's success, we can see Tatung as a corporation that produces house appliance and always focus on its core businesses. From the beginning, Tatung made house appliance to expend its productions to smart meters. Currently, Tatung designs systems that could connect to its house appliance and meters. Are the above considered as Tatung's advantages? Smart energy conservation could become a trend; does Tatung have other unique technologies that could dominate smart energy conservation field in the future?

A: Now Tatung focuses on smart meter and energy conservation for enterprises. In the future, we hope our business could popularize to smart home and power management system. For example, when developing electric cars, lots of charger stations are required. Once that charger stations are established, there are many power distribution related works need to be processed. It takes time for an industry to become mature. Tatung insists on focusing core businesses, and only by developing an industry step by step could build a mature industry. We think an efficient management system is a must when electric cars in Taiwan reach to 100,000 so currently Tatung has started to create that system. Tatung has developed smart meter for five years before we sold it to Taiwan Power Company. Integrating smart meter system is very complicated especially Taiwan Power Company is going to implement it throughout Taiwan and that is why it took us so long to test our product because there can be no mistake. It is impossible to establish a mature industry with just one step; always make products that are ready to sell, but also develop new products that need three to five years of preparation at the same time. Opportunities are for people who are ready, that is why we always establishing new systems. Although electric cars are popular only in America, we believe at some point electric cars will also become popular in worldwide, so we have started to establish power management system.


Tatung is a member in the industry. Corporations should participate in different fields for developing smart city meanwhile government needs to makepolicies to guide them. Tatung is a Taiwanese corporation that is founded for decades, and we are willing to follow government's policy and assist local governments to process smart city establishment. Following the government and other leading corporations of other industries and pass on our knowledge and technologies to the world, I think that is the next goal for Taiwan's industries to reach.