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Booming Economic Activities in Q1 2021 Have Driven Domestic Energy Consumption Rise by 7.4%, Higher than the Scale before the Pandemic
Date: 2021-07-02
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Booming economic activities and increasing commodity demands have driven the overall growth of the economy. Furthermore, the COVID-19 outbreak had struck many industries hard in Q1 2020; therefore, domestic energy consumption in Q1 2021 increased by 7.4% compared to the same quarter last year, reaching higher level than the scale before the pandemic (figure 1). On the contrary, energy supply decreased by 3.0% since import of crude oil by refineries decreased due to the continued effect of the pandemic on the export of oil products in the international community.

Domestic energy consumption in major sectors generally increased compared to the same quarter last year (figure 2) due to the following reasons:

1.Industrial sector (accounting for 62.8%, including non-energy use of petrochemical materials) increased by 10.1%: With booming economy and the rising international commodity prices, energy consumption of the overall manufacturing increased. Among manufacturing, the chemical materials industry experienced the largest increase, followed by the electronics industry; the former soared by 13.2%, and the latter grew by 4.8%.

2.Transportation sector (accounting for 14.9%) increased by 4.5%: Traffic had declined in Q1 2020 with the outbreak of the COVID-19 pandemic; on the contrary, the demand for transportation went up in this quarter as the economy prospered. Consequently, car fuel (accounting for 97.9% in transportation sector) rose by 4.2%.

3.Residential sector (accounting for 7.5%) increased by 5.1%: The pandemic has changed the way people live, and the homebody (stay-at-home) economy has led to growth of various types of energy consumption.

4.Service sector (accounting for 6.0%) increased by 4.7%: Besides the vigorous economic activities that have stimulated the energy consumption in many industries, oil consumption in the public services industry also surged by 13.3% as the result of the rising demand of national defense procurement.

Moreover, the progress of the energy transition policy, which was announced in 2016, can be reviewed based on the structure of electricity generation: compared to Q1 2016, coal-fired generation dropped by 5.2% in this quarter; gas-fired generation grew significantly by 10.4%; nuclear decreased by 3.4%; and renewable energy slightly declined by 0.6% (figure 3). Even though hydro generation decreased due to limited rainfall over the past two years, installed capacity of solar photovoltaic and wind has grown significantly (increased by 548.2% and 33.0% respectively), leading the increase of the solar photovoltaic and wind generation (grew by 683.8% and 9.6% respectively) (figure 4).

In summary, domestic energy consumption climbed because the overall industry was thriving in Q1 2021. Since energy supply was greatly affected by the international oil market, it remained in decline. Whether energy supply will recuperate to the normal level is determined by the recovery of demand for oil.

All the above-mentioned data are disclosed in the "Energy Statistics Monthly (Mar. 2021)", and the link is provided below.
https://www.moeaboe.gov.tw/ECW/populace/web_book/WebReports.aspx?book=M_CH&menu_id=142

Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director-General, Chun-Li Lee
Phone Number: 02-2775-7700
Mobile: 0936-250-838
Email: chunlee@moea.gov.tw

Business Contact: Director, Ming-Chih Chuang
Phone number: 02-2775-7710
Mobile: 0936-889-606
Email: mcchuang@moea.gov.tw
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