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Energy Supply and Consumption Decreased in Q1 2020 Due to the Impact of COVID-19
Date: 2020-07-02
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Energy consumption and supply decreased by 4.3% and 4.7% respectively on a year-on-year basis (YoY) in Q1 2020 due to the COVID-19 pandemic. Among energy consumption sectors, industrial sector, including non-energy use for petrochemical feedstocks, and transportation sector declined by 5.0% and 5.4% respectively. However, the electrical and electronic machinery industry, on the contrary, increased by 7.5%. Analyzing energy consumption by energy form, petroleum products had the largest decrease (9.5%), while electricity consumption increased by 2.0%. In terms of electricity generation, the share of coal-fired electricity generation decreased by 2.9 percentage points, LNG-fired increased by 4.5 percentage points, and renewable energy increased by 0.5 percentage points, which are in line with the energy transition policies. As the results of these trends, the energy supply of crude oil and petroleum products decreased by 2.4%, coal and coal products fell by 14.7%, whereas natural gas and renewable energy increased by 8.5% and 0.8% respectively.

1. Total domestic energy consumption decreased by 4.3% (YoY) in Q1 2020. (see figure1, table1, and table2)
(1) Industrial, transportation, and service sectors decreased, while residential sector increased.
a. Industrial sector, including non-energy use for petrochemical feedstocks, accounting for 61.3% of total domestic energy consumption, decreased by 5.0%.
(a) Due to the COVID-19 outbreak, the petrochemical product demand declined and caused the energy consumption of chemical materials industry to drop by 3.0%, while the non-energy use for petrochemical feedstocks also significantly decreased by 13.7%.
(b) On the contrary, energy consumption of the electrical and electronic machinery industry increased by 7.5%, which mainly benefited from the order transfer effect of the U.S.-China trade war.
(c) On the other hand, the energy consumption of epidemic prevention related chemical products industry increased by 5.2%. And the "food, beverage and tobacco" and "pulp, paper and paper products" industries also increased by 1.9% and 0.3% respectively.
b. Transportation sector (accounting for 15.4%) and service sector (accounting for 6.2%) decreased by 5.4% and 2.5% mainly due to the impact of the COVID-19 on transportation, hotels and restaurants, tourism and entertainment industries, etc.
c. Residential sector (accounting for 7.6%) increased by 1.1%, which was mainly the result of people spending more time at home during the pandemic.
(2) Classified by energy form, petroleum products consumption saw the most significant decrease.
a. Petroleum products consumption decreased by 9.5% mainly due to the decrease of oil consumption for petrochemical feedstocks (-13.7%), industrial use (-25.9%), and transportation use (-5.4%).
b. Electricity consumption conversely increased by 2.0% mainly due to the increase of the electrical and electronic machinery industry (8.0%), which accounted for 20.9% of electricity consumption, while the residential sector (accounting for 16.7%) also increased by 5.3%. However, service sector (accounting for 15.9%) decreased by 3.2%, of which the wholesale and retail industry decreased by 9.6%, somewhat offsetting the increase of electricity consumption.
2. The structure of electricity generation continued heading towards energy transition target. (see figure2)
Although electricity supply increased with consumption, in response to the energy transition policy, the proportion of coal-fired electricity generation decreased by 2.9 percentage points, while LNG-fired and renewable energy increased by 4.5 and 0.5 percentage points respectively (Installed capacity of renewable energy increased by 20.1%).
3. Energy supply decreased by 4.7% (YoY) in Q1 2020. (see table 3 and table 4)
(1) Crude oil and petroleum products, accounting for 49.2% of energy supply, decreased by 2.4% as demand of petroleum products decreased.
(2) Coal and coal products, which accounted for 26.1% of energy supply and approximately 58% were used for electricity generation, decreased by 14.7% due to 4.4% decrease of coal-fired electricity generation.
(3) Natural gas, which accounted for 16.4% of energy supply and 76% were used for electricity generation, increased by 8.5%. The decline of coal-fired electricity generation was substituted by LNG, thus the LNG-fired generation increased by 16.2%, resulting in the increase of natural gas supply.
(4) Renewable energy, accounting for 1.9% of energy supply, increased by 0.8%. Although conventional hydro decreased by 12.9% due to the significant decrease of precipitation, solar and wind power generations increased by 65.9% and 4.4% respectively, as renewable energy continued to increase (Installed capacity of solar PV increased by 39.7%).

Although the energy consumption in Q1 2020 significantly decreased due to the COVID-19 outbreak, the energy outlook in 2020 remains uncertain depending on how the post-pandemic economy recovers. All the above mentioned data are disclosed in the "Energy Statistics Monthly (Mar. 2020) ", and the link is provided below.
https://www.moeaboe.gov.tw/ECW/populace/web_book/WebReports.aspx?book=M_CH&menu_id=142
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Energy Supply and Consumption Decreased in Q1 2020 Figure
Energy Supply and Consumption Decreased in Q1 2020 Table
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