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IEA Country Reviews
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Energy Policies of IEA Countries - Spain -- 2009 Review, 160 pages, ISBN 978-92-64-06035-7, paper €75, PDF €60 (2009) Since the last IEA in-depth review in 2005, Spain has made significant progress in improving its energy policy. In Europe, the country is now leading in gas diversification and LNG development. Together with Portugal, it has set up the common Iberian electricity market, MIBEL, and has strong ambitions in developing it further. It has also become prominent in developing wind and solar energy technology, and succeeded in integrating large amounts of intermittent power in the electricity grid.
Along with other IEA member countries, Spain has set ambitious climate and energy security targets. Achieving these will require a transition to a low-carbon economy. Spain will need to increase its efforts to reduce CO2 emissions, particularly in the transport but also the critical power sector. As fossil fuels still provide more than half of electricity, Spain will need to keep open all the options - including nuclear, renewables, and the technology of carbon capture and storage - for making its power sector less carbon-intensive. The country should also increase its efforts to limit peak electricity demand through energy efficiency.
Spain has substantially de-regulated its electricity and gas tariffs, and developed a financial plan to end the large deficit that had built up under the previous tariff regime. Prices for many small electricity users, however, are still regulated and low enough to potentially distort the market. In addition, the still remaining subsidies for domestic coal production should be eliminated and replaced by direct social policy measures.
This review analyses the energy challenges facing Spain and provides critiques and recommendations for further policy improvements. It is intended to help guide Spain towards a more sustainable energy future.
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Energy Policies of IEA Countries - Portugal -- 2009 Review, 160 pages, ISBN 978-92-64-06037-1, paper €75, PDF €60 (2009) Portugal has made considerable efforts to strengthen its energy policy since the last IEA in-depth review in 2004. A large number of IEA recommendations have been successfully implemented, including greater diversification of the energy mix and increased energy policy co-ordination. A new National Energy Strategy, published in October 2005, identified three principal means for meeting Portugal’s policy goals: the promotion of renewable energy, increased energy efficiency and competition in energy markets.
Over a short period of time, Portugal has become a leader in terms of renewable energy development. Well-designed incentive mechanisms and the adoption of ambitious targets ensure hydro, wind and other technologies will continue to grow. The National Action Plan for Energy Efficiency was enacted in 2008, and Portugal aims to implement energy efficiency measures equivalent to 9.8% of total final energy consumption by 2015. This plan complements a well-developed and co-ordinated climate change policy. Further steps have been taken towards the liberalisation of energy markets, including the innovative creation of a single operator for the transport of natural gas and electricity, natural gas storage and operation of the Sines LNG terminal.
Still, a number of challenges remain. Energy markets are not as competitive as policy makers may have wished, and energy research and development policy co-ordination needs to be strengthened.
This review provides sectoral critiques of existing policy and recommendations for further improvements. It is intended to serve as an indispensable guide for Portuguese policy makers as they travel along the path to a more sustainable energy future.
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Energy Policies of IEA Countries - Luxembourg -- 2008 Review, 96 pages, ISBN 978-92-64-04341-1, paper €75, PDF €60 (2009) Luxembourg has reformed its energy policies across all sectors since the last IEA in-depth review in 2004. The country has fully liberalised its electricity and natural gas markets, and is actively participating in the development of the evolving Central West European regional electricity system. Luxembourg has also prepared a broad action plan on energy efficiency, improved the support system for renewable energy sources and revised taxes to mitigate climate change.
The country’s energy policy in the coming decade will be shaped by the EU 2020 targets that call for substantial reductions in greenhouse gas emissions, and strong increases in renewable energy and energy efficiency. These targets will be hard to meet, given that roughly half of energy-related CO2 emissions come from transport fuel use by foreign truckers and motorists, and that Luxembourg’s potential for producing much more renewable energy is limited.
Luxembourg is heavily dependent on oil. Although oil sources are well diversified by country of origin, more than 85% of oil stocks are held in neighbouring countries and often based on short-term leasing contracts. This leaves the country vulnerable to potential oil supply disruptions. Luxembourg should swiftly implement a plan to improve the security of oil supply.
This review analyses the energy challenges facing Luxembourg and provides critiques and recommendations for further policy improvements. It is intended to help guide the country towards achieving its sustainability targets.
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Energy Policies of IEA Countries – The Netherlands -- 2008 Review, 152 pages, ISBN 978-92-64-04339-8, paper €75, PDF €60 (2009) The energy policies of the Netherlands play an important role in ensuring energy security not only on a national level but in all of north-west Europe. The country’s strategic location makes it an important transit and trade hub for natural gas, oil and electricity. Furthermore, it has important natural gas production and a large oil refining industry. To enhance continental energy security, the government takes a leadership role in natural gas and electricity market development, pushing forward important policies to better integrate and harmonise the existing national and regional markets. One of the world’s leaders in energy research and development (R&D) management, the Netherlands is further increasing its R&D on energy technologies.
With sound policies already in place, the Netherlands has recently announced its intention to create an even more sustainable energy future. As part of this pledge, the government has set ambitious targets: to increase the share of renewables in the energy mix to 20% by 2020; to make a 2% annual efficiency improvement; and to lower greenhouse gas emissions by 30% by 2020 from the 1990 level. These objectives will not be easy to achieve. To ensure their attainment, the Netherlands will need not only well-designed policies but also their timely and effective implementation.
This review analyses the energy challenges facing the Netherlands and provides critiques and recommendations for further policy improvements. For example, it urges the government to provide policy continuity – such as in promotion regimes for renewable energy – to underpin a sustainable investment climate. It also highlights the need for closer co-ordination among national, regional and local authorities.
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IEA Energy Policies Review -- The European Union 2008, 224 pages, ISBN 978-92-64-04337-4, paper €75, PDF €60 (2008) For the first time, the IEA has reviewed the energy policies of the European Union which shape the energy use of almost 500 million citizens in 27 EU member countries. A unique entity governed under complex and almost constantly evolving structures, the EU constitutes a challenge for energy policy makers. Its energy policy has a global impact, not only because of its 16% share of world energy demand, but also because of the EU leadership in addressing climate change.
Strong policy drives are underway in the EU to achieve the completion of the internal energy market, increase renewable energy supply, reduce CO2 emissions and make the EU more energy-efficient. Concerns about security of supply have also led to a greater focus on improved energy relations with supplier countries, and new institutional structures are being put in place. How much progress has been made in the field of security, internal market and external energy policies? And in which of these areas has the EU already implemented a fully integrated policy? IEA Energy Policies Review – The European Union 2008 addresses these questions and also analyses the impact of the most recent major EU policy measures, in particular the Energy & Climate Package of January 2008 and the 3rd Liberalisation Package of September 2007.
This book finds that both of these proposals are highly ambitious. But implementing them and reviewing both volume and allocation of energy R&D will be necessary to achieve a sustainable energy future in a fully competitive integrated EU energy market.
CLARIFICATION OF IEA STANCE ON EU POLICY REVIEW
The IEA has consistently stated that overall energy sector R&D investment needs to be increased in all world regions.
Recent press reports have suggested that the new IEA publication, "IEA Energy Policies Review: The European Union – 2008" calls for cuts in funding of fusion energy, particularly of the ITER project.
The focus in the EU R&D policy review was not on ITER, rather, the total R&D spending envelope.
The study raises the question whether the total amount allotted to R&D is sufficient to attain both the short- and long-term EU policy goals.
The review states that any allocation of funding should be done "keeping in mind its international obligations towards the ITER project."
ITER is an important international project, which many IEA member countries support.
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Energy Policies of IEA Countries – Japan -- 2008 Review, 120 pages, ISBN 978-92-64-04335-0, paper €75, PDF €60 (2008) Declaring climate change and environment as a top priority of the 2008 G8 Summit in Hokkaido, host country Japan has demonstrated its commitment to pressing ahead in these domains. Already a world leader in advancing energy technology transfer and environmental policy, the country is determined to further improve its domestic policies, moving it towards a more sustainable and secure energy pathway for the long term. Along with other accomplishments, government support for energy R&D is very strong and policies to enhance the efficiency of appliances – both for domestic consumption and export – are models for other countries.
Yet there is still room for progress. Most importantly, a greater reliance on market forces throughout the system could lead customers to choices that enhance security, raise economic efficiency and promote environmental protection. Particularly with respect to climate change goals – Japan is the world’s fifth-largest greenhouse gas emitter – strengthening the value on greenhouse gas emissions would help give consumers the appropriate signals they need to make the right choices. Enhancing energy savings through efforts aimed at particular sectors (sectoral approaches) could be a part of the overall policy mix, along with ongoing leadership in promoting energy efficiency. The government should continue to work to complement existing voluntary instruments with stronger ones, including ones that rely more on market incentives, and standards and requirements.
This review takes an in-depth look at the energy challenges facing Japan today and provides critiques and recommendations for policy improvements to help guide the country towards a more sustainable energy future.
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Energy Policies of IEA Countries – Sweden -- 2008 Review, 148 pages, ISBN 978-92-64-04333-6, paper €75, PDF €60 (2008) Sweden is one of the leading IEA countries in the use of renewable energy and has a long tradition of ambitious and successful policies to improve energy efficiency. Compared to the other IEA countries, Sweden’s CO2 emissions per capita and per unit of GDP are low, partly owing to efficient and low-carbon space heating, and virtually carbon-free electricity generation. The country also remains a forerunner in electricity market liberalisation. Still, even if Sweden has continued to make progress in most areas of its energy policy since the IEA last conducted an in-depth review in 2004, there is room for improvement
As Sweden plans to further increase the use of renewable energy, it is crucial that these supplies are produced and used in the most sustainable manner for the environment and the economy as a whole. With regard to CO2 emissions, more can be done in all sectors, but as transport is the largest polluter and its emissions are increasing, it is the logical focus for Sweden’s efforts to reduce emissions further. This is a significant challenge.
Nuclear provides almost half of the electricity in Sweden, at a low cost and without CO2 emissions. But the future of nuclear power in the national power mix is still uncertain. To provide clear guidance to the electricity sector, Sweden will need to resolve the ambiguity about the future of nuclear power in the country.
This review analyses the energy challenges facing Sweden and provides critiques and recommendations for further policy improvements. It is intended to provide input to Swedish energy policy makers to help them identify a path towards a more sustainable energy future.
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Energy Policies of IEA Countries – Finland -- 2007 Review, ISBN 978-92-64-03071-8, PDF €0 (2008)FREE DOWNLOAD: Finland
Faced with considerable challenges related to its geography and size, Finland’s sound energy policies do much to overcome its situation. The country leverages its small market where it can – such as by adopting or harmonising with EU directives and policies. To counter its relative isolation, Finland strengthened its position by becoming part of the larger Nordic electricity market and enhancing energy linkages. At the core, however, the country ensures energy security by relying on transparency and sound market signals to investors and customers, as well as by making good use of domestic sources of biomass and nuclear.
As Finland continues to refine and enhance its energy policy, there are some areas that warrant special attention. As nearly all fossil fuels are imported and all natural gas comes through a single interconnection, the government should continue to explore ways to diversify import sources and routes. The new nuclear power plant currently being built – the first in a liberalised market – will help safeguard energy security, though the construction delays necessitate continued monitoring. Subsidies for peat, a fuel in abundance in Finland, should be reconsidered, as they do not enhance energy security. On the other hand, the government should continue to explore ways to expand new renewables, building on the current stock of biomass and hydro.
This book takes an in-depth look at Finland’s energy policy today and, through comparisons with good examples in other IEA countries, provides critiques and recommendations for improvements to guide the country towards a sustainable energy future. While the review provides comprehensive coverage of all topics, this thematic report highlights energy efficiency and energy R&D.
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Energy Policies of IEA Countries - Austria -- 2007 Review, ISBN 978-92-64-03075-6, PDF €0 (2008)FREE DOWNLOAD: Austria
Since the last review in 2002, Austrian energy policy has seen many positive developments. Today, Austria counts among the IEA member countries with the highest share of renewable energy supply, thus increasing energy security and reducing CO2 emissions. Great progress has also been made in the utilisation of biomass for heat and electricity production. Nevertheless, many challenges remain.
The climate strategy revision in 2007 is commendably realistic, but uncertainty remains whether it will be sufficient, and whether renewables and energy efficiency are well-balanced within it. While Austria is strongly promoting an increase of renewables production by adopting challenging targets, it is less ambitious in the area of energy efficiency. To achieve the renewables target, their supply will have to double, leading to significant increases in costs. In energy efficiency, while Austria is leading in developing efficient building solutions, there are concerns about implementation, especially about the lack of ambition and divergence in building codes. Overall, energy intensity has increased in recent years, and the government will have to put a strong focus on reversing this development.
Despite the early opening of the energy markets, effective competition has failed to emerge. This is partially due to systemic weaknesses such as dominant incumbents, lack of transparency in price formulation and a weak regulatory system with the potential for conflicts of interest.
This review thoroughly analyses Austrian energy policy and identifies the key challenges that need to be addressed. With recommendations for improvements, it is an important guide for Austrian policy makers toward a safer and cleaner energy future.
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Energy Policies of IEA Countries – United States -- 2007 Review, 200 pages, ISBN 978-92-64-03073-2, PDF €0 (2008)FREE DOWNLOAD: United States
The United States is the largest economy and energy user in the world. Significant developments have taken place in its energy policy since the last IEA review in 2002. Most important is the Energy Policy Act 2005 – a comprehensive energy legislation which has set new directions, including opening the way for a nuclear renaissance.
Two closely connected challenges shape all debates on the nation’s energy policy path: how to increase security by reducing the dependence on imported supplies; and how to address growing emissions of greenhouse gases. The United States national strategy is to find solutions largely through technology. It is a world leader in R&D and is driving development of carbon capture and storage and second-generation biofuels. But thus far, no federal government policy is in place to establish as a target an absolute reduction of CO2 emissions. The resulting uncertainty risks holding back investments into new technologies and may delay projects that are urgently required.
The transport sector will be a key to a sustainable success. In the short to medium term, reduced fuel demand through higher vehicle efficiency will increase security and reduce CO2 emissions. Yet the policy for the revision of CAFÉ (the corporate average fuel economy) standards will leave consumers with vehicles that fall short of the technological possibilities.
This review takes an in-depth look at these issues and provides recommendations on how the United States can do more to answer the challenges of both improving its security of energy supply and lowering its emissions intensity, demonstrating the significant improvements that can already be realised through existing technologies.
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Energy Policies of IEA Countries - Switzerland -- 2007 Review, 128 pages, ISBN 978-92-64-03069-5, PDF €0 (2007)FREE DOWNLOAD: Switzerland
Switzerland is entering decisive times in its energy policy. In 2008, the country should see remarkable advance in electricity market reform. Support for renewable electricity is set to increase massively. Decisions on post-Kyoto targets are getting closer, and a CO2 tax will be introduced for heating and process fuels. Plus, new measures to increase energy efficiency and the broader use of renewable energy are high on the political agenda.
Since the last in-depth review in 2003, Switzerland has made progress in most areas of energy policy. Still, more work remains to be done. Maintaining sufficient electricity capacity implies even stronger policies to promote energy efficiency and renewable energy sources. At the same time, the country will also need to decide which sources to use for large-scale power supply.
High dependency on oil can become a burden in a post-Kyoto world. In particular, Switzerland’s climate policy should focus more on reducing emissions from private car use, the largest and fastest-growing emitter. Current measures have not proven effective, and the costs of reducing CO2 emissions are being distorted across sectors.
Switzerland’s world-class energy R&D is expected to more than halve energy needs per capita by the second half of this century. This ambitious goal needs to be supported by consistent policies on energy efficiency and climate change.
This book takes an in-depth look at the energy challenges facing Switzerland and provides critiques and recommendations for policy improvements. The review guides the country towards a sustainable energy future.
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Energy Policies of IEA Countries - Ireland -- 2007 Review, 154 pages, ISBN 978-92-64-02562-2, PDF €0 (2007)FREE DOWNLOAD: Ireland
Ireland’s remarkable economic growth over the last 15 years had strong effects on the energy sector. Due to rapidly increasing demand, Ireland has become much more dependent on international energy markets than it was in the past. For Irish energy policy, 2007 is a watershed year. It marks the end of the transition in market liberalisation with the introduction of a unified national electricity market. In addition, the publication of a new energy policy should help to ensure future security of supply and bring environmental improvements of energy use.
Ireland is highly dependent on oil and increasingly dependent on natural gas. The price of these two commodities has strongly increased recently, which results in a heavy burden for the Irish economy and a risk for energy security. The main alternative in the supply side is coal and peat, which causes greenhouse gas emissions to rise much faster than expected.
This review analyses the energy challenges facing Ireland and suggests solutions, focussing on moving ahead with market reform and increasing the energy efficiency of the Irish economy. Establishing the “All-Island” electricity market will be of critical importance. Sharper focus on energy efficiency in all sectors of the economy, but in particular in transport and buildings, must be a priority. Finally, to achieve its ambitious goals for renewables in energy supply, Ireland will have to provide ample resources for research and development, to allow technologies such as ocean power to move from the laboratory to the market.
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Energy Policies of IEA Countries - Germany -- 2007 Review, 184 pages, ISBN 978-92-64-02223-2, PDF €0 (2007)FREE DOWNLOAD: Germany
Few countries can have as great an impact on energy policy in Europe as Germany. Its large size and strategic location make it a critical component of the region’s energy markets – as a result, sound energy policies and strong energy market design are a necessity. In these respects, Germany continues to make notable progress. The country has continued to reform its electricity and natural gas markets, set a timetable to phase out coal subsidies, is meeting key climate and environmental targets and is bringing energy, efficiency and environment to the top of the world agenda with its presidencies of both the G8 and European Union. The International Energy Agency (IEA) praises these efforts.
Nevertheless, work remains to be done to further improve German energy policies and markets. The planned phase-out of nuclear power over the coming years would have major impacts on the country’s energy mix, raising concerns about energy security, economic efficiency and environmental sustainability for the country and for Europe as a whole. Furthermore, though progress has been made, more needs to be done to set a truly level playing field for competition to develop in gas and electricity markets, which means effective unbundling of transport activities and a strongly empowered regulatory authority. Finally, the country’s environmental policies, though helping meet ambitious goals, are expensive – and sometimes various policies work at cross-purposes.
This book takes an in-depth look at the energy challenges facing Germany, and through comparisons with good examples in other IEA countries, provides critiques and recommendations for policy improvements. The review guides the country towards a sustainable energy future.
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