The Ministry of Economic Affairs' Bureau of Energy (BEI) released its "National Electricity Resource Supply and Demand Report" last week (21st), accumulating that electricity consumption in 2022 totaled approximately 279.45 billion kWh, a 1.3% decrease from the previous year (2021). Last year, total installed power generation capacity nationwide was approximately 61.944 million kWh, a net increase of 2.54 million kWh, driven by significant growth in solar photovoltaic (PV) and offshore wind power. The BEI predicts that electricity demand this year will be similar to last year's.
Last year's electricity consumption was 279.4 billion kWh, with the service sector showing the largest growth. The Bureau of Energy (BE) of the Ministry of Economic Affairs released its "National Electricity Resource Supply and Demand Report" on the 21st, projecting electricity consumption for 2022 to be approximately 279.45 billion kWh, a 1.3% decrease from the previous year (2021). The industrial sector accounted for the largest share of electricity consumption, at 156.8 billion kWh (56%), followed by residential consumption at 50.9 billion kWh (18%) and the service sector at 47.6 billion kWh (17%). Industrial electricity consumption, which had been rising steadily in previous years, has declined this year. The BEI explained that due to global inflation and interest rate hikes, supply chain adjustments have slowed economic activity in the domestic industrial sector, resulting in a decrease in industrial electricity consumption of approximately 4.5 billion kWh, a 2.81% decrease, compared to 2021. In contrast, as the pandemic eased, the service sector saw a return of tourism-related consumption, such as travel and dining. Leisure and entertainment, hotel-related spending, and passenger traffic on Taiwan Railways, High Speed Rail, and the MRT continued to rebound, leading to an increase in electricity consumption in the service and transportation sectors of approximately 2.4 billion kWh, a 5.03% increase. Increased outdoor activities also led to a relative decrease in residential electricity consumption of approximately 1.7 billion kWh, a 3.18% decrease. Energy Bureau Director-General You Zhenwei stated that electricity consumption for this year (2023) decreased by 3.37% year-on-year as of the end of April. Considering the economic situation and the preliminary data released by the Directorate-General of Budget, Accounting and Statistics in May showing a negative 2.87% GDP growth for the first quarter of the Executive Yuan, indicating that some domestic industries are continuing to destock production, electricity demand in 2023 is projected to be similar to last year. The long-term forecast for overall electricity demand from 2023 to 2029 has been slightly lowered, from last year's estimate of 2.3% to 2.03%.
Is gas-fired power generation struggling to meet its targets? According to the National Energy Administration (NEA), total installed power generation capacity in China will be approximately 61.944 million kilowatts in 2022, a net increase of 2.543 million kilowatts compared to 2021. Renewable energy sources such as wind power and solar photovoltaics contribute the most. For example, offshore wind power capacity increased by 476,000 kilowatts, bringing the total installed capacity to 745,000 kilowatts, while solar photovoltaics increased by 2.024 million kilowatts, bringing the total installed capacity to 9.724 million kilowatts. Yu Zhenwei explained future power supply plans. Since solar photovoltaic power generation can already meet peak daytime electricity demand, future power dispatch will focus on nighttime peak demand. To address the intermittent nature of renewable energy, hydropower or gas-fired units will be used for rapid support. The proportion of renewable energy in power generation is estimated to reach 15.5% in 2025 and reach the 20% target by October 2026. Although the government plans to use natural gas as a bridge to renewable energy, the recent delays in the operation of Units 8 and 9 at the Datan Power Plant and the smooth progress of the reconstruction of the Xiehe Power Plant have led to public doubts about the power generation plan. Taipower explained that Datan Unit 8 is expected to be connected to the grid in June and fully support the summer peak electricity demand in July; Unit 9 is also scheduled to be operational during the summer peak next year, and the current progress of all projects is smooth. You Zhenwei emphasized that considering the long installation time of the units, coupled with the uncertainties of environmental impact assessments, local government support, and public support, relevant statistics and estimates will be based on the current power plant plan. A conservative approach will be adopted to strive to achieve the installation goals, and rolling reviews will be conducted annually in the future.
Source: Environmental Information Center (https://e-info.org.tw/node/237054)
