In 2005, Taiwan's per capital energy consumption amounted to 4,771.87 liters of oil equivalent, up 2.8% over 2004. Energy income flexibility, or the rate resulting from the division of growth of per capita energy consumption by economic growth, stood at 0.82, much lower than 2004's 1.11 and lower than 0.92 of the aggregate energy income flexibility during the 1986-1991 period, too. Income flexibility for power consumption was 1.23 in 2005, higher than 2004's 0.83 but lower than 1.21 during the 1986-1991 period.

Taiwan relies on imports for over 98% of its primary energy supply, of which petroleum and its products account for about 50%. With import reliance of petroleum reaching 99.9%, changes in the supply and demand in the global oil market have heavy effect on the structure of the island's various primary energy supply. In 2005, affected by the sharp increase in global energy prices, share of petroleum and its products, and liquefied natural gas in the structure of the domestic primary energy supply rose slightly, the share of coal declined, and that of nuclear power increased slightly.

Due to the soaring international crude-oil prices in the recent three years, Taiwan's imports of petroleum and its products surged to US$21 billion in 2005, up from 2003's US$9 billion. Coal import jumped to US$3.8 billion, up from 2003's US$1.8 billion.

Hikes in oil and electricity prices boost production costs and living expenses and lower product competitiveness and purchasing power of income, creating adverse effect on the general economy. However, unreasonably low oil and electricity prices will dampen the utilization efficiency of resources, which runs counter to the welfare of local people. How to develop clean and sustainable new energy is an important task confronting the government.