Open Energy

Graphics and content / Energy System Analysis Research Group, RSPRC, National Taiwan University
Translator / Jo-Shih Chiu

1. Electricity consumption trends in Taiwan

The total electricity consumption in 2017 has grown from 2016 by 2.3%, which is higher than the growth rate of 2.1% of 2016, and higher as well than the average growth rate of 1.4% over the past five years. There is a significant gap between the actual growth rate and the Energy transition goal to be achieved by 2025, which states that the growth rate of annual electricity consumption shall not exceed 0.7%.

With regard to the growth contribution of electricity consumption by counties and cities in Taiwan, the top three are Taichung City (62.6%), Kaohsiung City (14.6%) and Taoyuan City (11.8%); while the top three counties and cities that contributed the most for the reduction of electricity consumption are Hsinchu City (-9.3%), Taipei City (-4.5%) and Miaoli County (-2.7%).

The electricity consumption of each sector has all increased in 2017, among which the electricity consumption of Own use of energy sector, Transportation sector and Agricultural sector has grown the most, and the growth rate has significantly improved to less than 1% for the electricity consumption of Service sector and Residential sector in comparison with 2016. In terms of the growth contribution of electricity consumption, Industrial sector has been the main source of contribution for the growth. (refer to Table 1).

 

Table 1. Growth rate of electricity consumption and growth contribution of the total electricity consumption by sector in 2016 & 2017

	Own use of energy sector	Industrial sector	Transportation sector	Agricultural sector	Service sector	Residential sector	Total
Growth rate of electricity consumption in 2016	-0.49%	1.62%	1.04%	0.19%	1.72%	5.46%	2.15%
Growth rate of electricity consumption in 2017	4.63%	3.14%	4.52%	3.96%	0.68%	0.59%	2.32%
Growth contribution of total electricity consumption in 2017	14.77%	71.88%	1.04%	1.95%	5.64%	4.72%	100%

Source: Bureau of Energy (2018), prepared by the research group.

2. Growth variation of consumed (sold) electricity by counties and cities^[1]

(1) Including Industrial sector (Figure 1):
If we rule out the outer islands such as Kinmen and Matsu, the three counties and cities with the largest growth rate of electricity consumption in 2017 are Taichung City (7.1%), Hsinchu County (3.3%) and Yunlin County (2.7%); while the electricity consumption has reduced the most in Hsinchu City (-2.7%), Yilan County (-1.5%) and Taitung County (-1.4%).

The increase of electricity consumption in Taichung City comes mainly from the fast growth of electricity consumption of Industrial sector (energy users with contract capacities higher than 800 kW) and Service sector (al1 energy users with contract capacities higher than 800 kW such as large department stores, transport and warehousing industry and hotels, as well as the users with contract capacities less than 800 kW such as banks, large book stores and hypermarkets). Therefore, despite the negative growth of electricity consumption of Agriculture, forestry, fishery and husbandry sector, Residential sector and Government agency sector, the overall consumption of electricity in Taichung City has largely increased.

The reduction of electricity consumption in Hsinchu City may be primarily attributed to the consumption reduction of Industrial sector (energy users with contract capacities higher than 800 kW) whose contribution reached 93%. Besides, the electricity consumption of Service sector and Residential sector has also reduced, while the electricity consumption of Agriculture, forestry, fishery and husbandry sector and Government agency sector has slightly grown.

The reduction of electricity consumption in Yilan County also came mainly from the Industrial sector in which the electricity consumption of users with contract capacities higher than 800 KW or less than 800 KW has decreased. Therefore, despite the electricity consumption of the users with contract capacities higher than 800 kW in Service sector has considerably increased (growth rate: 10.4%), the overall consumption of electricity in Yilan County has reduced from the previous year.

 

 

Figure 1. Growth contribution of electricity consumption and growth rate of total electricity consumption in 2017 by sector of counties and cities (including Industrial sector)
Source: Taiwan Power Company (2018a; 2018b), prepared by the research group

 

(2) Excluding Industrial sector (Figure 2):

If we rule out the outer islands such as Kinmen and Matsu, the three counties and cities with the largest growth rate of electricity consumption in 2017 are Pingtung County (2.1%), Yilan County (1.4%) and Yunlin County (1.2%); while the electricity consumption has reduced the most in Miaoli County (-2.0%), Taitung County (-1.9%) and Hsinchu City (-1.4%).

The increase of electricity consumption in Pingtung County may be primarily attributed to the fast growth of electricity consumption of Agriculture, forestry, fishery and husbandry sector and Service sector (small company, e.g. small eating establishments and retail stores).

The electricity consumption in Miaoli County has reduced due to the consumption reduction of Government agency sector and Residential sector. The total reduction contribution of the two sectors has reached 89%.

 

 

Figure 2. Growth contribution of electricity consumption and growth rate of total electricity consumption in 2017 by sector of counties and cities (excluding Industrial sector)
Source: Taiwan Power Company (2018b), prepared by the research group

 

3. Growth variation of consumed (sold) electricity by sector of counties and cities

(1) Industrial sector

The growth of Industrial sector’s electricity consumption came in order from Taichung City, Taoyuan City and Kaohsiung City. In 2017, the industrials users with contract capacities higher than 800 kW has increased the most in Taichung City, which led to the significant growth of electricity consumption; while the growth of electricity consumption in Taichung City and Kaohsiung City was because the average electricity consumption of industrial users with contract capacities higher than 800 kW was higher than in previous years.

The industrial consumption of electricity has largely reduced in Yilan County and Hsinchu City. For Yilan County, the reduction may be attributed to the slight decrease of the number of industrial users from 2016 that led to the overall reduction of electricity consumption; while in Hsinchu City, the reduction was primarily due to the significant decrease of average electricity consumption of users with contract capacities higher than 800 kW (growth rate of electricity consumption: -3.4%).

In terms of industrial users with contract capacities less than 800 kW, Lienchiang County and Tainan City accounted for the largest growth (the growth rates are 7.5% and 4.8% respectively).

(2) Service sector ^[2] (Figure 3)

Exclusive of electricity consumption of government agencies, the consumption of Service sector has grown by 1.1%, for which Taichung City, Kaohsiung City and New Taipei City have in order contributed the most.

Taking a closer look at the Service sector by its three categories of user (i.e. users with contract capacities higher than 800 kW, users with contract capacities less than 800 kW, and small companies), one may find that the national electricity consumption of energy users with contract capacities higher than 800 kW (e.g. large department stores, transport and warehousing industry, hotels, etc.) has grown negatively by -0.2% with Taipei City and Tainan City making the main contribution to the reduction, whereas the growth contribution of electricity consumption came from Taichung City, New Taipei City and Yilan County. 

Users with contract capacities less than 800 kW (e.g. banks, large book stores, hypermarkets, etc.): The growth rate of electricity consumption is around 1.1% with Taichung City, New Taipei City and Changhua County contributing the most for the increase, while the decrease came from Hsinchu City.

Small companies (e.g. small eating establishments, retail stores, etc.): 

The growth rate is around 1.8% with Taichung City, Kaohsiung City and Taoyuan City contributing the most for the increase. The electricity consumption in Hsinchu City, Taipei City, New Taipei City, Hualien County and Keelung City has slightly increased with growth rates under 1.0%; as for the rest counties and cities, the growth rates of small companies are above 1%.

Figure 3. Composition of electricity consumption growth (reduction) of Service sector in 2017 by counties and cities
Source: Taiwan Power Company (2018b), prepared by the research group

 

(3) Agriculture, forestry, fishery and husbandry sector, Residential sector and Government agency sector

The electricity consumption of Agriculture, forestry, fishery and husbandry sector has grown by 4.0% with Yunlin County, Pingtung County and Tainan City contributing the most for the increase. In Yunlin County and Tainan City, the increase of electricity consumption came primarily from agriculture and husbandry; while in Pingtung County, agriculture, husbandry and fishery accounted for significant growth of electricity consumption.

In terms of Residential sector, the growth rate of electricity consumption is 0.59%, one may find that except for Kaohsiung City, Yunlin County, Chiayi County, Pingtung County and Lienchiang County, the electricity consumption of the rest counties and cities has grown negatively. The number of households in 2017 is 8.65 million, i.e. an increase of 1% from 2016 (Department of Statistics, Ministry of Interior, 2018), indicating that the average electricity consumption per household has slightly dropped comparing to 2016.

The growth rate of electricity consumption of Government agency sector has grown by -4.5% with Taichung City, Yunlin County and Tainan City contributing the most for the reduction. One may find the electricity consumption of government agencies of the majority of counties and cities has reduced, the consumption has increased only in Hsinchu City and Lienchiang County. If we look into the electricity consumption of universities and colleges, we may find that the growth rate is -2.4%. Except for Taoyuan City whose growth rate is 0.5%, the electricity consumption of universities and colleges in the rest counties and cities has reduced. As shown in Figure 4 below, the top three counties and cities in terms of consumption reduction are Miaoli County (-13.4%), Changhua County (-8.0%) and Taichung City (-7.2%).

 

Figure 4. Growth rate of electricity consumption of universities and colleges in 2017 by counties and cities
Source: Taiwan Power Company (2018b), prepared by the research group

 

4. A brief analysis on the variation factors of electricity consumption

Private sectors might be less willing to save electricity because the annual average temperature has hit a record high in 2017, and the electricity rate has been lowered from the previous year.

According to Central Weather Bureau (2017), using the average of temperature data obtained from the 13 low-elevation stations as Taiwan’s annual average temperature, the annual average temperature in 2017 is 24.4 degrees Celsius, which set the new record for warmest temperature as in 2016, and ranked number 1 in terms of year of high temperature since 1947. During the summer months (June to September) of 2017, the cooling degree hours has grown by 11.9% from 2016, which is an increase of 189.3 hours, especially during August to September, the cooling degree hours has grown by 40.5%, i.e. an increase of 283.2 hours (refer to Figure 5).

In 2016, the average electricity rate was 2.62 NT$/kWh (Bureau of Energy, 2017), and it was lowered by around 2.6% to 2.55 NT$/kWh in 2017. According to the latest statistics of electricity rates published by International Energy Agency (IEA) in 2017 and those of Taiwan’s Asian neighboring countries, the residential electricity rate of Taiwan is the second lowest in the world in 2016, and the industrial electricity rate is the seventh lowest (Taiwan Power Company, 2017). In the long run, this may be disadvantageous to the promotion of power-saving in Taiwan.

 

 

Figure 5. Run chart of monthly average cooling degree hours
Source: Industrial Technology Research Institute (2017)

 

 

Reference:

1. Central Weather Bureau (2017). “Monthly Report on Climate System, 106.”
2. Department of Statistics, Ministry of Interior (2018). “Monthly Bulletin of Interior Statistics 1.1 – Land Area, Villages, Number of Households and Usual Residents.” Retrieval Date: 5 February 2018.
3. Taiwan Power Company (2017). “Information Disclosure – User Information – Knowledge on Electricity Pricing.” Retrieval Date: 5 February 2018.
4. Taiwan Power Company (2018a). “Information on Industrial Consumption of Power in Counties and Cities.” Retrieval Date: 31 January 2018.
5. Taiwan Power Company (2018b). “Information on Residential and Commercial Consumption of Power in Counties and Cities.” Retrieval Date: 31 January 2018.
6. Industrial Technology Research Institute (2017). “Save Your Own Electricity: Electricity-Saving Plan.” Retrieval Date: 20 January 2018.
7. Bureau of Energy (2017). “Annual Report of Energy Statistics, List of Electricity Rates by Year”.