Browse by: "E"

The International Energy Agency's 2002 review of the UK's energy policies and programmes. It finds that the UK energy sector has performed remarkably well during the 1990s. The gas and electricity markets opened up to competition. Real gas and electricity prices fell. Domestic natural gas replaced coal in the power industry, and carbon dioxide emissions and air pollution declined as a result. Increased oil and gas production on the UK continental shelf has contributed significantly to these developments. Central to the success of the energy sector however, was a readiness to adjust policies and regulatory measures when shortcomings became apparent. The last major adjustment was the introduction of the New Electricity Trading Rules in March 2001. These rules provided the decisive step towards a fully competitive power market.

Thanks to energy market reform and the resulting "dash for gas" in power generation, the UK is likely to meet its 12.5% greenhouse gas reduction target under the Kyoto Protocol. But the country has a national target to reduce carbon dioxide emissions by 20% below 1990 levels by 2010. Meeting this target will require extra efforts.

In the gas market, capacity auctions at the St. Fergus entry point into the UK’s onshore pipeline system have fetched very high bid prices in recent years. This has revealed bottlenecks at the St. Fergus terminal and farther afield. But so far the high prices have not resulted in capacity expansion. The regulatory regime may have to be adjusted to give stronger incentives for new pipeline construction.

The International Energy Agency's 2003 review of Ireland's energy policies and programmes. It finds that in the four years since the last in-depth Review, the Irish energy sector has seen a number of important developments, notably reform of the electricity and natural gas markets, and the move towards cutting greenhouse gas emissions. Market reform promises multiple economic benefits, although the government must ensure that the incumbent players do not enjoy undue advantages and that enough new competitors enter the market.

Ireland’s climate change policy is making progress. One uncertainty, however, involves the closure of the coal-fired Moneypoint plant. While this could provide 22% of the country’s required emissions cuts, replacement generation capacity would be required. This could also make the country 80% dependent on natural gas for its electricity, leading to energy security concerns. Ireland should take steps to better integrate Kyoto mechanisms into its overall climate change strategy.

The International Energy Agency's 2002 review of Austria's energy policies and programmes.  This review finds that in the four years since the last in-depth Review, the two most important developments in the Austrian energy sector have been market reform in the electricity and natural gas sectors, and the efforts made toward meeting the country’s emissions reduction targets under the Kyoto Protocol. Austria's security of supply is enhanced by extensive cross-border trading and recent efforts to diversify natural gas import supply sources.

A regulatory framework now allows all customers to choose their natural gas and electricity suppliers. Austria has established an independent regulator and non-discriminatory third-party access rules. While reform of the gas sector is too recent to draw any meaningful conclusions, power sector reform has achieved mixed results. Industrial rates have fallen by up to 40% but residential rates have fallen little, if at all. Effective competition still faces obstacles including high system access charges and dominant incumbent suppliers who could wield market power and deter new entrants.

Austria’s commitment to reduce greenhouse gas emissions by 13% remains a major challenge. Total greenhouse gas emissions increased nearly 2.5% from 1990 to 2000 with CO2 emissions rising 9% over the same period. The finalisation of a comprehensive climate change strategy in 2002 is an important step forward. Austria’s planned use of Kyoto flexible mechanisms could cut the costs of its climate change efforts, although the macroeconomic effect of all emission reduction measures requires constant monitoring. The support scheme for renewable energy and combined production of heat and power could be rendered more cost-effective, if a degression scheme were employed to lower support levels gradually.

This volume contains comprehensive information on the OECD electricity sector. There are over 600 pages on production, consumption, prices and trade in electricity. The report also contains coverage of heat production for OECD countries. The statistics cover 30 OECD countries, providing data for selected years.

Part I provides a detailed summary of the electricity and heat sectors, including production, installed capacity, consumption, electricity trade and prices for electricity and input fuels. These data are presented in a tabular format that permits easy analysis and comparison. Part I also provides a summary of gross electricity and heat production by country in non-OECD countries, including a breakdown of electricity and heat production by combustible fuels.

Part II contains electricity data for each of the 30 OECD countries, and for eight OECD and IEA regional aggregates for selected years. Each country section presents tables containing a comprehensive statistical database on energy consumption, economic and population growth, electricity production and consumption, heat production, electricity imports and exports, sectoral energy and electricity consumption and prices for electricity and electricity input fuels. These data are official country data reported each year to the IEA.

The International Energy Agency's 2003 review of Switzerland's energy policies and programmes.  This review finds that the SwissEnergy Programme constitutes the core of Swiss energy policy for the 2001 to 2010 period, with targets for saving fuel and electricity, use of renewables and climate change mitigation. Switzerland is to be commended for rigorously monitoring its policies and measures, but particular emphasis should be placed on ensuring their cost-effectiveness.

Environmental issues are a central focus of Swiss energy policy but more effort is needed to meet the Kyoto target or the more stringent 10 percent national target for carbon dioxide reductions.  To avoid excessive costs, programmes for emissions trading and other flexible mechanisms could usefully supplement new domestic measures such as voluntary commitments and the proposed CO2 “incentive” tax.

Reform of the electricity and gas sectors is becoming urgent but presents a challenge due to the rejection of the Electricity Market Law in a public referendum held in September 2002. The report discusses possible approaches to increase efficiency in the electricity and gas sectors while respecting the referendum results.

The International Energy Agency's 2003 review of Hungary's energy policies and programmes.  It finds that Hungary has made remarkable progress in liberalising its energy markets, as part of the government's aim to strike a balance between energy security, economic efficiency and environmental protection. A new Electric Power Act was passed in December 2001, partially opening the electricity market to competition by 2003 and to full competition by the time Hungary accedes to the European Union in 2004. A new law on gas will be approved in 2003 introducing competition in the gas market.

Hungary still faces a number of challenges however. In the electricity sector, it needs to ensure that MVM, the largest utility, does not cause distortions through its market power. Security of gas supply is vital for Hungary. Opening the Hungarian upstream market to increase indigenous gas production and to facilitate competition is a positive step. But domestic production is not sufficient. Limited gas-to-gas competition, uncertainty as to future gas demand and the oligopolistic structure of gas distribution companies may constrain the development of competition. Finally, policies which cap energy prices to address social welfare concerns discourage energy saving, distort fuel choices and discourage investment by energy firms.

As part of the IEA’s periodic review process of its Member countries, this report analyses Hungary’s energy sector and policies, and provides proposals and recommendations for the Hungarian government.

The International Energy Agency's 2003 review of Italy's energy policies and programmes.  This review finds that Italy has made substantial progress in implementing electricity and gas market reforms. The gas market is now fully opened to competition and the electricity market is proceeding towards full opening. The government has reduced its shareholding in ENEL and Eni. New market institutions, notably an energy sector regulator, are now operational. Italy ratified the Kyoto Protocol in June 2002 and launched a national strategy to mitigate climate change in December 2002.

But Italy also faces some challenges. High reliance on imported oil and gas raises concerns about security of supply. Energy diversification is restricted since there are few options available apart from natural gas, given the limitations of renewable energy as a source of supply. Timely investments in energy production, transportation and interconnection are crucial for security of supply, but they often meet strong local resistance under the devolution of powers to local authorities. In spite of the progress made, continuous monitoring is needed to further develop competition in the gas and electricity markets and enable energy price reductions. While Italy enjoys relatively low energy and carbon intensities of its economy, these advantages may be eroded over time. More is required to mitigate climate change emissions.

As part of the IEA’s periodic review process of its Member countries, this report analyses Italy’s energy sector and policies, and provides proposals and recommendations for the Italian government.

The International Energy Agency's 2003 review of Japan's energy policies and programmes.  This edition finds that Japan has ratified the Kyoto protocol and is implementing its 2002 climate change plan.  The country has developed an impressive range of policies to address rising CO2 emissions from the energy sector. Some of the measures could be strengthened however, and made more cost-effective. Industry’s use of Kyoto flexible mechanisms could also reduce costs.

Nuclear power plays a key role in Japanese energy policy, but the government’s objective of increasing nuclear generation has been impeded by safety-related incidents in recent years. It is vital to restore public confidence, to clarify the role of nuclear power in the liberalised electricity market and to improve the performance of the existing nuclear units.

Japan has begun to reform its electricity and natural gas markets, but little competition has developed. The report finds helpful new government measures to further reform markets, but points out that the markets should be closely monitored. More effective measures may be necessary if competition does not develop.

This volume contains an analysis of developments in energy policies and markets in the member countries of the International Energy Agency. It includes summaries of the in-depth reviews of Austria, Hungary, Ireland, Italy, Japan and Switzerland conducted from October 2002 to June 2003. The full reviews are published separately. It also includes short reviews of policy developments in Australia, Belgium, the Czech Republic, New Zealand, Norway, Spain and Turkey as well as energy balances and key statistical data for all member countries and key energy statistics since 1973.

The overview section examines trends in energy markets, including an analysis of recent trends in energy demand, supply and the fuel prices. It highlights key issues related to energy security, which remains a major government preoccupation. It examines member countries’ progress in energy market reform, their actions to meet the Kyoto greenhouse gas emissions targets, their policies on energy efficiency and energy R&D. It contains a short study of developments in non-member countries, including China, India, South-East Asia, Latin America, Russia, Central and South-eastern Europe and Saudi Arabia.   

 

The International Energy Agency's 2003 comprehensive review of the energy policies and programmes of Finland.  This edition finds that the most important development in the Finnish energy sector in recent years has been the construction of a new nuclear power plant. Scheduled to come on line in 2009 with a capacity between 1.0 and 1.6 GWe, the plant is expected to provide needed generating capacity with zero greenhouse gas emissions. The report suggests that the Finnish government should monitor the plant’s progress and stand ready to act should delay or other obstacles arise.

Finland uses international trade and other tools to lower energy costs and increase energy security. Greater international co-operation through Nordpool, in international transmission lines and plans for backup power, and efforts to diversify natural gas supply options would reinforce this policy.

While Finland’s light-handed approach to regulation has worked well, the report recommends areas of more proactive regulation, especially in the fields of electricity networks and district heating systems.

Finland has agreed to keep GHG emissions at 1990 levels during the first Kyoto commitment period, yet projections show a 15% increase in emissions under business-as-usual conditions. Actively integrating international measures such as emissions trading into domestic programmes and more market-based approaches to renewable energy will ease the path towards Kyoto compliance.

Swedish energy policy combines strong government involvement with the judicious use of market forces. This dual approach has generally worked well, giving Sweden a reliable, low-cost and environmentally sound energy supply.

 Sweden must now resolve the future of its nuclear power plants, which provide nearly 50% of the country’s electricity.  The government must work with stakeholders to find a credible solution.

This volume contains data on the supply and consumption of coal, oil, gas, electricity, heat, renewables and waste presented as comprehensive energy balances expressed in million tonnes of oil equivalent. Historical tables summarise production, trade and final consumption data as well as key energy and economic indicators. The book also includes definitions of products and flows, explanatory notes on the individual country data and conversion factors from original units to tonnes of oil equivalent. More detailed data in original units are published in Energy Statistics of OECD Countries 2001-2002, the sister volume of this publication.