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2022-01-04 10:18
Bureau of Energy, Ministry of Economic Affairs

Energy Supply and Consumption Rise in Q3 2021 Driven by Strong International and Domestic Economy

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Energy Supply and Consumption Rise in Q3 2021 Driven by Strong International and Domestic Economy
As the international pandemic has gradually stabilized, the global demand has escalated. Furthermore, container congestion at major ports has affected shipping and logistics. The imbalance of supply and demand has led to the rise of international commodity prices, stimulating the domestic manufacturers to increase productivity. Compared to Q3 2020, domestic energy consumption increased by 5.9% in Q3 2021. Energy supply grew by 12.5% due to the 31.1% increase of imported crude oil for refining. The growth of crude oil import was rather significant because the demand of petroleum products was low during the same quarter last year, and the demand returned to the pre-pandemic level this quarter.

The reasons for changes in domestic energy consumption compared to the same period last year are listed below:

1.Industrial sector (accounting for 61.7%, including non-energy use of petrochemical materials): In the international market, steel, petroleum materials and plastic products were in great demand, and the productivity of IC foundry, package and test was in full capacity. Factories proactively enhanced domestic production capacity. Consequently, energy consumption in industrial sector soared by 13.4%.

2.Transportation sector (accounting for 13.7%): At the end of July 2021, the epidemic alert level in Taiwan remained at Level 2. Thus, traffic had not resumed to the level before the pandemic hit Taiwan, resulting in 10.1% reduction of energy consumption in transportation sector.

3.Residential sector (accounting for 8.7%): Since the epidemic prevention regulations were not lifted entirely, the consumption of gas increased owing to the extending time of people's cooking at home. However, the average temperature of this quarter was lower than the one of the same quarter last year, so the consumption of electricity dropped, offsetting the rise of the gas consumption, and therefore energy consumption of residential sector decreased by 1.9%.

4.Service sector (accounting for 6.7%): The stimulus voucher was introduced in the same quarter last year, coupled with capacity limits that affected restaurants, entertainment venues and educational places this quarter, so energy consumption in service sector went down by 9.0%.

Moreover, the structure of electricity generation is heading towards the goal of "coal reduction, gas augmentation, nuclear elimination, renewable expansion." Compared to the same quarter last year, coal-combusted generation, which accounted for 48.7%, dropped to 47.6%, gas-combusted generation, which accounted for 32.8%, rose to 35.7%, nuclear generation, which accounted for 11.0%, fell to 7.9%, and renewable energy generation, which accounted for 4.8%, increased to 6.0%. The expanding renewable energy generation was mainly because rainfall had recovered to the regular level, enabling hydro generation to soar by 77.2%, whereas the continued growth of installed capacity of solar photovoltaic facilitated 30.9% increase of solar photovoltaic generation (figure 2).

In summary, global consumption was strong this quarter, and Taiwan's industrial sector prospered, which led to increased domestic energy consumption and stimulated the recovery of energy supply to the pre-pandemic level. Yet, container congestion caused the cost of raw materials to go up, and the rise of prices might suppress the productivity of manufacturing. The trend of energy supply and consumption will be influenced by the recovery of logistics and the development of international market.

All the above-mentioned data are disclosed in the "Energy Statistics Monthly (Sep. 2021)", and the link is provided below.

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
Energy Supply and Consumption Rise in Q3 2021 Driven by Strong International and Domestic Economy
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