A non-nuclear power facility would take five to six years to complete, thus Taiwan would face a period of serious power shortages, discouraging domestic as well as foreign manufacturers from making new investments on the island. As Taiwan lacks sufficient domestic energy sources, it is almost totally dependent on energy imports. Taiwan has experienced rapid growth in energy consumption in recent years due to high levels of economic growth. Government figures show that annual growth in consumption has averaged 5.0 percent over the past few years and is expected to maintain this rate. GDP growth was 5.3 percent for 1999 and is projected at 7.7 percent for 2000.
Oil is the dominant fuel in Taiwan, accounting for half of total primary energy consumption.
The country's industrial sector accounts for more than half of total energy demand but this share is declining as the country's economy moves toward new, less energy-intensive industries. The transportation sector accounts for one-quarter of total energy demand. By early 2001, the refinery will reach its full capacity of 450,000 bpd, adding 58 percent to Taiwan's previous capacity. The government plans to triple LNG consumption by 2010 for environmental reasons, as natural gas is the cleanest burning fossil fuel. Following the decision to scrap the fourth nuclear plant, the government said it would liberalize the operation of natural gas plants and expedite the completion of a third power transmission line project to improve the supply of power from the south to the north.