Open Energy 2019: Taiwan's Annual Energy Review

 Author / Energy System Analysis Research Group, RSPRC, National Taiwan University


This column, Taiwan's Annual Energy Review, will analyze Taiwan's key energy statistics annually, provide an overview on Taiwan's energy structure, track on the energy and climate policy and make policy recommendations.

Generally speaking, in 2019, we can see negative trends both on Taiwan's energy consumption and power generation. Based on the latest data provided by Energy Bureau, the total amount power generation in 2019 is 0.5% less than 2018. This is the first degrowth after 2015. On the other hand, total power consumption declined the first time for the last four years. Industry sector contributed the most for this decrease.

Regards to each county's individual performance, the most argumentative case will be Taichung City. We compare the power generation curtailments with the air pollutants decrease. Though the air quality was improved by the curtailing order on Taichung coal-fired power plant, the improvement was limited. The government should further take an eye on the moving pollution sources. However, under the pressure from the internal combustion engine vehicle industry, the goal on electric scooters and cars are all suspended in the mid-2019.

Lastly, the overall energy transition scoreboard is provided below. It will clarify and track the Taiwan energy transition policies.


A. The power generation mix and the share of renewable energy generation by types of Taiwan in 2019

● In 2019, power generation decreased by 0.5% compared with 2018, and about 1.39 billion kWh was reduced, which is the first negative growth since 2015. Among them, thermal power generation decreased by 3.71% (3.66% reduction in coal combustion, 30.25% reduction in fuel oil, and 1.40% reduction in gas); renewable energy generation increased by 21.57%, and nuclear energy increased by 16.77% (Bureau of Energy,2020a).

● Coal-fired power generation and its share of power generation have declined for the first time since 2016, and its share of power generation has fallen to 46.11% (Bureau of Energy,2020a). Compared with the previous years, this number is only higher than year 2015 and 2016, which is the third lowest in the past 20 years.

Compared with the 2019 electricity structure provided in the "National Electric Power Supply and Demand Report of 2018", the share of coal-fired power generation is very much consistent with the plan. However, the total power generation is 1.5% lower than the original plan, coal-fired power generation is 0.6% lower (Bureau of Energy, 2017).

● The overall gas-fired power generation decreased by 1.4% in 2019 and its share of power mix decreased by 0.3% to 33.2%. The share of gas has declined slightly for three consecutive years since 2017. On the one hand, this decrease might attribute to the overall fewer volume of natural gas imports which is 1.6% lower than year 2018; on the other hand, it may also be affected by the increase in gas consumption in the industrial sector. Compared with 2017, gas consumption in the industry sector increased by 330 million m3, an increase of 13%. For power generation and steam power, it was reduced by 660 million m3, or 4% (Bureau of Energy, 2020b).

● If the power generation system of Taipower is calculated solely, the proportion of coal-fired power will decrease from 38.8% in 2018 to 37.3% in 2019, and the proportion of gas-fired power plants will slightly decrease from 38.6% to 37.3%, which is the first time when gas-fired power plants overtook coal-fired power plants, noting the first golden cross of Taiwan's energy transition (Bureau of Energy, 2020a).[1]


● The share of renewable energy power generation in 2019 increased from 4.58% to 5.6%. The share of wind power and solar photovoltaic also reached 2.2%. The total renewable power generation increased by 2.726 billion kWh, with the largest growth rate of solar photovoltaic, which contributed more than half of the growth of renewable energy power generation. However, compared with the 2019 electricity structure planning in the “National Electric Power Supply and Demand Report of 2018", the amount of renewable energy power generation is 15% lower than the plan, and the proportion does not reach the planned rate 6.5%, either (Office of Energy and Carbon Reduction, EY, 2019). It shows that the annual average growth rate of renewable energy power generation in the next five years need to be increased from the original 23% to 26% in order to reach the 20% goal and 61.7 billion kWh of renewable power generation in 2025(Bureau of Energy, 2017, 2020a).

● In regards of the development of solar photovoltaic, the original promotion target for 2019 was set modestly at 1.5 GW and progressively at 2.2 GW. In fact, according to the energy statistics monthly report, the newly installed capacity in 2019 is only 1.4 GW. However, there have totally 2.2GW installed capacity got approval in 2019. Based on this trend, the short-term goal of 6.5GW of solar photovoltaic installations could be achieved in 2020 (Bureau of Energy, 2020c, 2020d).

● Wind power generation increased by 11% compared to 2018, and power generation increased by 185.4 million kWh (Bureau of Energy, 2020a). The installed capacity target for offshore wind power plant in 2025 is 5.7 GW. By now, about 0.2GW was built by the demonstration unit of various operators; a total of 7 operators have allocated capacity to 3.836 GW through selection operations; two developers obtained a total of 1.664 GW via tendering. Subsequent implementation stages such as construction, grid connection, verification, and commercial conversion all affect whether the 2025 target will be implemented properly, and it is also crucial for the institutional learning required for the following zonal development for year during 2026 to 2035 (Bureau of Energy, 2018a, 2019).

The cumulative installed capacity of land-based wind turbines in 2019 is 0.717 GW, which is about 0.5 GW away from 1.2GW of the 2025 installation capacity target set in the "Wind Power 4 Years Promotion Plan" (Bureau of Energy, 2017a). However, there is no specific plan for the development of onshore wind power after 2020. In addition, the FIT guarantee onshore wind turbine operators have been received since 2009 will be expired in 2028. Under the reality of the saturated onshore wind farms and the enlarged NIMBY effect, the uncertainty of the development of onshore wind turbines will be enlarged.

● Thermal power generation fell by approximately 8.6 billion kWh. It was mainly made up by the growth of renewable energy and nuclear energy. In 2019, renewable energy power generation increased by 2.726 billion kWh, and nuclear power generation increased by 4.641 billion kWh. Despite the deep concerns and doubts towards nuclear power growth, there are still insufficient cognitions in this debate. After the decommissioning of Chinshan nuclear power plan, the maximum power generation of Kuosheng nuclear power plant, Maanshan nuclear power plant and Lungmen nuclear power plant will be around 31 billion kWh. It may also be maintained in 2020. But in March 2021, when the No. 1 unit of Kuosheng nuclear power plant being decommissioned, nuclear power generation will decline. According to current policy planning, the second golden cross of energy transition will occur in 2021, that is, the annual generation of renewable energy will be higher than nuclear power (Bureau of Energy, 2020a).


B. Trends of Taiwan Energy consumption

Policy Objective

The main policy objective for overall energy consumption is based on the evaluation indicators proposed by departments respectively under "Greenhouse Gas Emission Control Action Programs". The main sources of energy consumption are the "industrial" and "Non-energy use" sectors, which account for about 60% of the consumption (Bureau of Energy, 2018b).

● According to the "Action Plans for Greenhouse Gas Emission Control of Energy Sector (Phase I)", the estimated average annual growth rate of energy consumption from 2016 to 2020 is 0.18% (Bureau of Energy, 2018b).


Table 1. Comparison of changes in Taiwan's energy consumption in 2018 and 2019

  Energy sector's own consumption Industrial sector Transportation sector Agricultural sector Service sector Residential sector Non-energy use sector Total (per million oil equivalent)
Energy Consumption In 2018 733.92 2,707.23 1,343.45 69.56 593.77 655.95 2,625.90 8,729.80
Energy Consumption In 2019 744.38 2,661.96 1,351.54 69.55 587.01 647.64 2,397.67 8,459.74
Growth Rate of Energy Consumption in 2019 1.51% -1.79% 1.51% 2.13% -0.98% -1.22% -8.58% -2.92%
Growth Contribution 4% -19% 8% 1% -2% -3% -88% -100%
Share of energy consumption in 2019 9% 31% 16% 1% 7% 8% 28% 100%

Source: Bureau of Energy (2020f), compiled by the research group.


Trend Analysis

● The overall energy consumption in 2019 was -3.17%. It showed a negative growth and was the most significant drop in recent years (Bureau of Energy, 2020f).

● The drop mainly comes from the contribution of the non-energy use sector, which is mainly the production of petrochemical and refining-related petrochemical primary products. In 2019, it is affected by the poor demand of the terminal market and the decline in international oil prices; hence, the overall sales of the petrochemical industry have shown a decline in price and volume. The annual growth rate of sales value of the petrochemical industry in 2019 turned into a recession, and the industrial prosperity was viewed as a recession. (Taiwan Economic Research Institute, 2020). As a result, the overall energy consumption of the non-energy use sector has declined with a growth contribution of -85% (Bureau of Energy, 2020f).

● In 2019, the consumption of industrial sector changed from growth to recession, contributing -17%, second only to non-energy use sector, which ultimately led to a significant reduction in overall energy consumption in 2019 (Bureau of Energy, 2020f).

● Compared to 2018, consumption growth in the "industrial sector" and "non-energy use sector" has driven overall energy consumption growth. Therefore, it can be said that the consumption growth or decline of the "industrial sector" and "non-energy consumption sector" controls the general trend of Taiwan's overall energy consumption (Bureau of Energy, 2020f).

● On the other hand, the energy consumptions of the service sector and the residential sector have declined for two consecutive years, but the transportation and agricultural sectors have turned from recession to growth (Bureau of Energy, 2020f).

● In terms of energy intensity, the energy intensity will reach 4.42 (liters of oil equivalent per thousand dollars) in 2019, showing a decrease of 5.7% from 2018. In terms of degree of reduction and intensity, the year of 2019 was the best performance for the past 5 years, measuring up to annual average improvement target of 2.4% set by the energy saving path under the 2018 Energy Transformation White Paper, and even overpassing annual average improvement target of 3% set by the International Energy Agency (Bureau of Energy, 2018).




C. Trends of Taiwanese electricity consumption in 2019

Policy Objective

● The "Industry sector" is the main source of electricity consumption, accounting for about 56%, and the "commercial sector" and "residential sector" each account for about 18%. The three account for more than 90% of Taiwan's overall electricity consumption. Therefore, the discussion of electricity consumption trends is mainly focused on the greenhouse gas reduction policies and related strategies of these three sectors (Bureau of Energy, 2020e).

● According to the estimated electricity consumption of the " Action Plans for Greenhouse Gas Emission Control of Energy Sector (Phase I), Approved Version, Bureau of Energy", the average annual growth rate of electricity consumption from 2016 to 2020 is 0.72% (Bureau of Energy, 2018b).

● In accordance with the goals of the "Smart Grid Master Plan", a total of 1 million low-voltage systems using smart meter will be built in 2020 and 3 million in 2024.


Table 2. Comparison of changes in growth rate of electricity consumption and growth contribution of total electricity consumption by sector in 2018 and 2019

  Energy sector's own consumption Industry sector Transportation sector Agricultural sector Commercial sector Residential sector Total (billion kwh)
Electricity Consumption In 2018 189.69 1489.84 14.68 29.60 471.15 468.76 2663.76
Electricity Consumption In 2019 191.71 1475.74 14.92 30.45 467.23 471.76 2651.83
Growth Rate of Electricity Consumption in 2019 1.06% -0.95% 1.64% 2.85% -0.83% 0.64% -0.45%
Increased (or Decreased) Consumption 201,733 (1,410,482) 24,027 84,459 (392,365) 300,130 (1,192,497)
Growth Contribution 17% -118% 2% 7% -33% 25% -100%
Share of energy consumption in 2019 7% 56% 1% 1% 18% 18%  

 Source: Bureau of Energy (2020e), compiled by the research group.


Trend Analysis

● The overall electricity consumption in 2019 showed the first negative growth, -0.45%, for the past 4 years (Bureau of Energy, 2020e).

● Compared with the growth rate of 1.15% in 2018, the overall electricity consumption decreased. The main reason is the contribution of the decline in the industry sector, with a contribution of -118%. However, part of the decline was offset by increases in the residential sector (Bureau of Energy, 2020e).

● For the smart meters deployment for the ordinary households, i.e. the low-voltage users, Taipower has completed the installation of 200,000 smart meters in 2018. Also, they installed another 175,000 units in 2019, reaching a cumulative installation of 375,000 units. By 2020, a cumulative installation of 1 million units is expected.

● In terms of the share of electricity consumption, the industry sector accounts for 56% of Taiwan's electricity consumption, while the commercial sector and the residential sector each account for 18%. It is noteworthy that in 2019, the electricity consumption of the industry sector and the commercial sector was both reduced, but the residential sector had switched from last year's reduction to growth (Bureau of Energy, 2020e).

● If we check the various businesses among the industry sector thoroughly, the electricity consumption of the computer, communications and audiovisual electronics manufacturing industry increased by 1.21%, while all the remaining main industries (excluding the category “other") decreased. As in 2018, the electronics industry, basic metals industry, and chemical materials manufacturing industry were the main factor affecting the overall electricity consumption of the industry sector (Bureau of Energy, 2020e) (See Figure 3).




D. Taichung Coal-Fired Power Plant Curtailing and Air Pollution Emission

The Environmental Protection Administration introduced the newly amended "Emergency Prevention Measures for Serious Deterioration of Air Quality" on June 9, 2017. Taipower then by law reduced the emission and began to curtail its load on November 3, 2017, with a view to jointly improving Taiwan's air quality problems. However, the air quality in Taichung City was still foggy which induced many questions.

The total curtailing instances of Taichung Plant's load reduction in 2018 was 368, and 462 in 2019, as shown from the chart below. The curtailing peaked from October to March (air pollution season); the relative curtailing capacity is also proportional to the number of load reductions. The total load reduction capacity from October to December in 2018 and 2019 respectively is 1.275 billion kWh in 2018 and 3.82 billion kWh in 2019 (Taipower, 2018, 2019a, 2019b).




Air Pollution Emissions of Taichung Coal-Fired Power Plant in 2018, 2019 - Sulfur Oxide and Nitrogen Oxide

In order to solve the air quality problem, the Environmental Protection Administration launched the "14 + N Air Pollution Prevention Strategy" in 2017. One of the measures is improving the regulation on power plants. It cooperated with the load reduction during the air pollution season. The data shows that the total emissions of sulfur oxides were 11,500.807 metric tons in 2018 and reduced to 8.23.172 metric tons in 2019; the total emissions of nitrogen oxides were 16652.219 metric tons in 2018 and reduced to 9744.31 metric tons in 2019.

According to EPA, the PM2.5 in the Central Air Quality Zone in 2018 was improved by 22% compared with 2015, and the number of days at the red alert was improved by 87%. This markedly improvement is under the significant reduction of Taichung Coal-Fired Power Plant. However, in solving the air quality problems in the central region, the power plant's load reduction still has its limit. The direction of policy measures should be shifted to actively improve mobile sources (large diesel vehicles, etc.), surface sources (such as sand and dust of Zhuoshui River, etc.) and reduce the impact of CHP and bituminous coal combustion. These are the key to enabling the central region to meet the air quality standards.



E. The trend of electric vehicles in the transportation sector

Policy Objective

Solving mobile air pollution sources with electric cars and scooters has become an important policy actively promoted by various countries. Coupled with the trend of energy transformation, internal combustion engines that rely on fossil fuels as the main body will gradually be replaced by electrification. Countries that have proposed a ban on the sale of fuel vehicles, including: Norway, the Netherlands, France, the United Kingdom, and India. Taiwan also proposed a series of exit schedules for fuel vapor and scooters at the end of 2017 (fuel motorbikes will be banned in 2035 and fuel vehicles in 2040) and an interim target for the proportion of electrified vehicles in new sales from 2020 to 2040. However, in the face of industry and market pressure, this policy was suspended in mid-2019 (Bureau of Energy, 2018c).

The current policy objective can be only seen in the "Action Plan for Greenhouse Gas Emissions Control in the Transportation Sector (Phase I)" which is set at "Increasing the number of electric scooters by 121,000 from 2018 to 2020" (Ministry of Communications, 2020).

Open Energy 2019 1

Figure 8. Interim target for Sales of Electric Vehicles accounted for New Vehicle sales
Source: Bureau of Energy (2018c), “Brief report on the development schedule of electric vehicles and electric locomotive". Compiled by the research group.


Trend Analysis

● Overall sales figures for electric scooters show that the number of scooters sold in 2019 exceeded 900,000. This record is the second year that exceeding 900,000 new scooter sales in history after 2017. Not only is the number of sales of new cars reached the highest in history, but the number of newly registered in 2019 also reached a record high of 168,000. For electric vehicles, the proportion of "nonconventional fossil fuel vehicles" increased from 9,296 (2.75%) in 2018 to 29,769 (8.8%). However, it is still dominated by hybrid fuel vehicles. The proportion of pure electric vehicles in the new sales market has not increased correspondingly. Although the number of new electric vehicles sold in 2019 has increased from 404 in 2018 to 3,361, but the number only accounted for 0.73% of the annual sales.

● The main reason for the slow growth of electric vehicles compared to electric scooters is that the related infrastructure and usage methods are different from traditional oil vehicles. Also, the price of electric vehicles is higher than ordinary vehicles. In 2019, Taiwan's new electric vehicle market is dominated by TESLA, accounting for more than 93%. The main reason for the increase in the number of electric vehicles in 2019 can be attributed to TESLA's strategy of drastic global price reduction in March 2019, and the introduction of the affordable model 3 in August, resulting in the growth of sales.


Table 3: Statistics of TESLA and electric passenger car sales in 2019



Total sales of electric vehicles









































● In the scooters market, in addition to the existing Gogoro, Zhonghua, Gwangyang and other electric car manufacturers with different systems, after mid-2019, Gogoro-powered PBGN (Power By Gogoro Network) car manufacturers also joined the market. With the continued support of government subsidies, the proportion of electric vehicles in the overall new car sales market has reached 18% (Bureau of Energy, 2018c).

● It is worth noting that the sales of electric vehicles in December 2019 reached 28,000, which is also a record high. But the main reason is the expected reduction in subsidy pressure in 2020, which made the year-end sales surge.

● In 2020, with the reduction of the subsidy policies of the Industrial Development Bureau and the Environmental Protection Administration, some local governments have even stopped subsidies. Furthermore, as the traditional vehicle industry has proposed the movement that the oil-powered vehicles should enjoy the same treatments as electric-powered vehicles, the government reduced the subsidies for electric vehicles. This will bring a significantly decline and the promotion of long-term electric vehicle policies may suffer from adverse effects.

● If we compare the past promotion schedules for the electric cars and scooters, the target of the proportion of electric vehicles in new sales in 2020: scooters (20%) and cars (10%). Although the clear policy promotion period has been suspended, with the continuous promotion of related subsidy policies, the goals of electric vehicles and scooters continue to grow. Even if the policy goal has been suspended, there is still a very high probability of achieving the goal in 2020 (Bureau of Energy, 2018c).



F. Brief summary – Tracking the Progress of Energy Transition

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Status Quo in 2019

Policy Objectives

Progress Rating

Comment and Analysis

Residential and commercial sector

  • Residential Sector's electricity consumption increased by 0.64%
  • Commercial Sector's electricity consumption reduced by 0.83%

Annual average growth rate target in electricity consumption (2016~2020):

  • Residential sector: 1.01%
  • Commercial Sector: 0.89%

Based on Residential and Commercial Sector's Electricity Saving Programs under County and City launched in 2018 (縣市共推住商節電行動), it provides subsidies for equipment and empower local governments' energy management capabilities. If we compare the temperature change trend with the power consumption change trend in 2019, the initial result could be deemed as positive. However, the Program will be ended in 2020. The government should begin to plan a complete energy-saving strategy for the next stage as soon as possible. It should be moved from the solely device replacement to the promotion of nearly zero-energy buildings.

Industry sector

  • Energy consumption decrease by 1.79%
  • Electricity consumption decreased by 0.95%
  • Non-energy consumption reduced by 8.58%
  • Annual average growth rate of energy consumption should be under 0.18% during 2016 - 2020;
  • Annual average growth rate of electricity consumption should be under 0.72%;
  • Level of non-energy consumption should remain the same.

In 2019, due to the recession in the petrochemical industry, industrial energy consumption has declined for the first time since 2015. In terms of changes in power consumption, the reduction in industrial power consumption mainly comes from the users that contract capacity is 800 kW and below. By contrast, large users' power consumption is slightly increased.

Although Bureau of Energy extended the effective date for the Regulation on Setting and Implementing the Energy Users' Energy Saving Targets from 2019 to 2024, it still lacks the needed imposing power. It is still not enough to improve the industrial energy efficiency to achieve energy transformation and carbon reduction goals.

Smart electricity meters

  • 0.0175 million smart meters have been installed in 2019.
  • Accumulative Installation: 0.0375 million.
  • Accumulatively 1 million by 2020

The speed of Taipower smart meter deployment must be tripled in 2020 to achieve the deployment target. However, as of May 2019, only 1% of low-voltage residential users apply the time of use rates. Also, less than 10% of small businesses have smart meters. It shows that the benefits of smart meters haven't fully explored.

Solar photovoltaic

  • Total installed capacity reaches 4.15 GW.
  • Installed capacity Target: 4.3 ~ 4.5GW by 2019.

Although the Executive Yuan had a cross-ministerial management and control mechanism to promote photoelectricity and the market had huge investment momentum, it did not reach the original target in 2019.

For the next step, it is necessary to amend the building regulations accordingly and introducing renewable portfolio standards for the major electricity users in order to reach the target.

Wind power

  • The total installed capacity reaches 845MW.
  • Installed capacity Target:1.05 GW by 2019.

With the huge administrative resources, the bottlenecks posed on offshore wind development have been solved mostly. However, on the other hand, the failure to regain momentum for onshore wind power has a detrimental effect on reaching the 1.2GW target of 2025.

Coal-fired power

  • The proportion of coal-fired generation is 46%.
  • For the first time, large-scale coal-fired power generation become lower than gas-fired one.
  • The original plan is to lower the proportion to 46% by 2019, then to 27% by 2025.

Due to the deep concern and pressures from the public and local governments, large-scale coal-fired power generation is continuing to decrease.

However, at present, no corresponding countermeasures have been formulated for coal-fired cogeneration, resulting in CPH power generator with coal as fuel is still reaching 95% of cogeneration. With no structural changes, it will cast an adverse impact on the subsequent coal phase-out.

Electrified vehicles

  • Sales of electric scooters made 18% of the new sale market in 2019.
  • The new sale market share of non-conventional vehicles achieved 8.8%.
  • Electric scooters should account for 20% of new motorbike sales by 2020.
  • Non-conventional vehicles should account for 10% of new vehicle sales by 2020.

Although last year the Executive Yuan abandoned the policy target of prohibiting the sale of fuel vehicles by specific year, the share of electric vehicles and non-conventional vehicles is still approaching the interim target timely.

Energy storage

  • Chang-bin "Clean Energy Center" has set up 2.4MW, but there is no specific information on the ancillary services.
  • Cumulatively reached 10MW in 2019 and 590MW in 2025


Energy storage is a key technology to enhance the flexibility of the power system. Taipower also proposed a yearly energy storage development plan. However, there is no information on the overall energy storage promotion progress. It is difficult for the public to understand the process and hard to build up the needed trust for energy transition.

Source: Prepared by the research group.



[1] The deference between the data calculated by BOE and Taipower is the amount of production for civil energy users'self-consumption which is not included in Taipower system.



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