This study investigates whether ICT can help to reduce the energy consumption by enhancing the energy efficiency. The impacts of ICT industry development on the energy consumption of residential sector is investigated since the household energy conservation is the key factor for the success of energy conservation and carbon cut in our social economic system. This paper applies the panel data analysis to examine the impact of ICT on energy consumption in residential sector in Taiwan during the period of January, 2002 to December, 2011. The results show that ICT and energy consumption in the residential sector have a positive relationship. This is because more energy use as living standards increase accompanying by the widely use of electrical appliances, not only increasing in number, species, and the use of time. The consumer price index estimated coefficient is negative, which means the consumer price index has negative relationship with the energy consumption. Oil, natural gas and electricity energy prices estimated coefficients are negative, which means people will consume less energy as energy prices increase. Income estimated coefficient is positive, which means energy consumption will increase due to the higher living standards brought by the higher income levels. Almost all the estimated coefficients of population growth rates, household population and residential building floor area are significantly positive, which means more residential energy demand will be generated as the number of energy consumption equipments enlarges with the increase of population rate, household population and residential building floor area.