The past energy consumption in the residential sector in Hong Kong has been analyzed and a simulation model to forecast the total energy consumption in the residential sector has been developed. The residential energy consumption is modeled as a function of households, income per household, energy price of a dominated energy source and weather indicator. Energy consumption is assumed to depend partly on the past level of energy consumption so that the effects of changing appliance ownership and technology development are accounted in the model. Due to rapid population growth and economy development in Hong Kong , the current energy demand in the residential sector has accounted for 1.09 MTOE. The demand will reach 1.45 MTOE at the year 2010, and increase of 34% in 12 years.