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IEA Country Reviews
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Energy Policies of IEA Countries - Germany -- 2013 Review, 212 pages, ISBN 978-92-64-19075-7, paper €75, PDF €60 (2013)Since the IEA last reviewed Germany’s energy policies in 2007, the country has taken two fundamental policy decisions that will guide its energy policy in coming decades. In September 2010, the federal government adopted the Energy Concept, a comprehensive new strategy for a long-term integrated energy pathway to 2050. Following the Fukushima Daiichi nuclear accident in March 2011, Germany decided to accelerate the phase-out of nuclear power by 2022 starting with the immediate closure of the eight oldest plants. This decision resulted in the adoption of a suite of new policy measures and determined renewable energy as the cornerstone of future energy supply, a set of policy instruments commonly known as the Energiewende.
In order to achieve the ambitious energy transformation set out in the Energiewende, by 2030 half of all electricity supply will come from renewable energy sources; Germany must continue to develop cost-effective market-based approaches which will support the forecasted growth of variable renewable generation. Furthermore, the costs and benefits need to be allocated in a fair and transparent way among all market participants, especially households.
In the future, renewable energy capacity must expand in parallel with the timely development of the transmission and distribution networks. In addition, a stable regulatory system is necessary to ensure long-term finance to network operators. Furthermore, close monitoring of Germany’s ability to meet electricity demand at peak times should continue in the medium term.
Energy policy decisions in Germany inevitably have an impact beyond the country’s borders and must be taken within the context of a broader European energy policy framework and in close consultation with its neighbours.
This review analyses the energy-policy challenges facing Germany and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
Download here the executive summary in German.
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Energy Policies of IEA Countries - Finland -- 2013 Review, 176 pages, ISBN 978-92-64-19077-1, paper €75, PDF €60 (2013) Finland’s economy is highly industrialised. Yet with over one-third of its territory located above the Arctic Circle, the country is largely rural and sparsely populated, except for its southern tip. With its energy-intensive industries and its cold climate, Finland’s energy consumption per capita is the highest in the IEA.
Finland is highly dependent on imported fossil fuels, and energy policy is at the heart of the government’s concerns. The government’s energy strategy aims to strengthen Finland’s energy security, to move progressively towards a decarbonised economy, and to deepen its integration in the wider European market.
Finland has a very ambitious renewable energy programme, with a view to meeting 38% of its final energy consumption from renewable sources by 2020. Finland is the most forested country in Europe; biomass will thus play a central role in meeting the target.
Finland is one of few IEA countries with plans to expand its nuclear capacity, and the Parliament has approved the construction of two more nuclear power plants. If all planned projects are completed, the share of electricity produced by nuclear could double by 2025, reaching around 60%. This would contribute to diversifying Finland’s energy security and meeting its low-carbon objectives.
Also, Finland participates in the Baltic Energy Market Interconnection Plan (BEMIP), which aims to further regional integration through EU-supported infrastructure projects.
This review analyses the energy policy challenges facing Finland, and provides sectoral studies and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
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Energy Policies of IEA Countries - Sweden -- 2013 Review, 182 pages, ISBN 978-92-64-19073-3, paper €75, PDF €60 (2013)Download here the free chapter on the Swedish energy policy framework
Sweden has made progress in recent years towards a more secure, sustainable energy future. The Scandinavian nation already has an almost carbon-free electricity supply and has phased out oil use in residential and power sectors. It is increasingly integrated within the Nordic and Baltic electricity markets, and its joint renewable electricity certificate market with Norway offers a unique model for other countries.
Now Sweden must take concrete steps to realise its vision of a fossil-fuel-independent vehicle fleet by 2030 and no net greenhouse-gas emissions by 2050. Although Sweden has decided to allow the replacement of its existing nuclear reactors, further emission reductions will come at a higher cost and require technology change. This means Sweden will need to carefully evaluate the most cost-effective pathways for its transition to a low-carbon economy.
Sweden has a high energy-intensity level, which requires greater energy efficiency in industry, buildings, heat and transport. A decarbonisation vision should be mapped out for each industry sector. Starting with transport, Sweden must specify how it will wean its vehicle fleet from fossil fuels by 2030.
Sweden’s industry lead in smart grids is an asset. Sweden should scale up investment in clean energy technologies. As all Nordic countries decarbonise, cost-effective regional solutions can control consumers’ costs. The large-scale deployment of renewable and energy technologies in a common Northern European energy market can drive decarbonisation without comprising competitiveness, security of supply and affordability.
This review analyses the energy-policy challenges currently facing Sweden, and provides studies and recommendations for each sector.
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Energy Policies of IEA Countries - The Republic of Korea -- 2012 Review, 140 pages, ISBN 978-92-64-17150-3, paper €75, PDF €60 (2012) Korea, the world’s thirteenth-largest economy and the seventh-largest exporter, is an energy-intensive nation. In 2008, the country adopted a long-term “green growth” strategy to foster economic development by means of low-carbon technologies and clean energy; since then, the government has implemented many policies to support these goals.
In 2012, Korea announced an emissions-trading scheme -- the first of its kind in Asia -- which will be implemented in 2015. This represents a major step towards achieving its target of a 30% reduction in greenhouse gas emissions by 2020. Strong energy efficiency policies have been developed to complement the emissions-reduction target. Korea has made efforts to enhance energy security by taking measures to diversify energy sources, reduce the use of fossil fuels and foster the development of renewable energy alongside the expansion of its nuclear energy programme. Government expenditure on energy-related RD&D is among the highest in the OECD.
Progress in some sectors has been slower, and the lack of a clear, long-term vision for its electricity and natural gas markets is one of the greatest energy-policy challenges facing the Korean government. Energy markets are dominated by incumbents and have been slow to open up to competition.
This review analyses the energy-policy challenges facing Korea and provides sector-based assessments and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
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Energy Policies of IEA Countries - Australia -- 2012 Review, 170 pages, ISBN 978-92-64-17072-8, paper €75, PDF €60 (2012) Australia enjoys the benefit of abundant and diverse energy resources; it is the world’s ninth-largest energy producer and is one of only three net energy exporters in the OECD. Its substantial conventional energy resource base includes coal, natural gas, oil and uranium. The country also enjoys extensive wind, solar and geothermal resources as well as large biomass and ocean energy potential.
The energy sector is a significant contributor to the Australian economy. Exports have more than tripled over the past decade and surging economic and social expansion in relatively nearby emerging economies such as China and India has driven significant demand for Australian energy and mineral resources. This boom is widely forecast to continue in the coming decades.
Late in 2011, the Australian government released a draft energy white paper, which sets out a comprehensive strategic policy framework to guide the development of the energy sector. Also in 2011, the Australian government announced a climate change plan including a wide-ranging package of clean-energy proposals and the introduction of a carbon price mechanism accompanied by significant levels of financial support for innovation in clean-energy technologies.
The scale of Australia’s energy policy ambitions is enormous and very costly even for a resource-rich nation. Significant investments will be needed for the clean-energy transition and building the infrastructure necessary to expand the domestic resource base. This review analyses the energy-policy challenges facing Australia and provides critiques and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
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Ukraine 2012 -- Energy Policies Beyond IEA Countries Series, 224 pages, ISBN 978-92-64-17151-0, paper €75, PDF €60 (2012) Ukraine’s energy sector faces unprecedented challenges, from a heavy reliance on expensive fossil-fuel imports to inefficient infrastructure and markets. Yet there is also potential for Ukraine to experience an energy revolution, one that could boost employment, lift economic growth and enhance energy security. Modernisation of Ukraine’s energy-supply sectors has only begun and will require investment on a huge scale, complemented by a fundamental reform of the business environment. A strong dependency on oil and gas imports and often-inefficient energy production, transportation and supply sectors means that reducing energy demand must be a greater priority. The potential for energy efficiency gains in the residential, district heating and industrial sectors is large. Endowed with large conventional energy reserves, alongside sizeable renewable potential, Ukraine can build the capacity to significantly increase its resource production.
Releasing this potential will require deep regulatory reform and full implementation of international treaty provisions. Effective competition, alongside a progressive move towards market prices, will also help Ukraine attract investment to develop the sector. A draft energy strategy, which sets out a series of supply-side measures, was published in 2012. Broadening and implementing a comprehensive energy strategy, one that takes greater account of demand-side policies, could significantly improve progress in the medium term.
This review analyses the large energy-policy challenges facing Ukraine and provides recommendations for further policy improvements. It is intended to help guide policy makers in the country towards a more secure and sustainable energy future.
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Energy Policies of IEA Countries - Ireland -- 2012 Review, 176 pages, ISBN 978-92-64-17146-6, paper €75, PDF €60 (2012) Ireland has suffered a significant economic downturn, but remains committed to its ambitious energy targets to bring the country towards a low-carbon economy. Ireland’s location at the edge of the Atlantic Ocean ensures one of the best wind and ocean resources in Europe, and Ireland has set the ambitious target of producing 40% of its electricity from renewable sources by 2020.
Ireland is highly dependent on imported oil and gas. While the push to develop renewable energies is commendable, this will result in an increased reliance on natural gas, as gas-fired power plants will be required to provide flexibility in electricity supply when wind power is unavailable. With two-thirds of Ireland’s electricity already coming from gas-fired generation, this poses concerns with regard to gas security, particularly as 93% of its gas supplies come from a single transit point in Scotland. In order to meet Ireland’s ambitious renewable targets and improve the island’s level of energy security, the country must successfully develop a range of gas and electricity infrastructure projects and market solutions while continuing to integrate its energy markets with regional neighbours.
Ireland also has a pro-active energy efficiency policy, including a detailed National Energy Efficiency Action Plan outlining 90 measures and actions to be implemented in order to achieve the target of 20% energy savings in 2020.
This review analyses the energy-policy challenges currently facing Ireland, and provides sectoral studies and recommendations for the further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
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Energy Policies of IEA Countries - Switzerland -- 2012 Review, 140 pages, ISBN 978-92-64-17148-0, paper €75, PDF €60 (2012) Switzerland has taken bold decisions to gradually phase out nuclear power and to reduce by a fifth its greenhouse gas emissions by 2020 with domestic measures only. These are challenging objectives, and the country now needs to identify the most viable ways to meet them at least cost and minimum risk to energy security.
In the absence of nuclear power, maintaining sufficient electricity capacity will require strong policies to promote energy efficiency and renewable energy. Such measures have already been outlined, but they will likely not be enough. For baseload generation, gas-fired power plants would be the simplest option. Treating their CO2 emissions the same way as in the neighbouring countries would be a strong positive incentive for investors.
Because Switzerland’s energy-related CO2 emissions come mostly from oil use in transport and space heating, action is most needed in these areas. Commendably, the country is making polluters pay by using a CO2 tax for financing decarbonisation efforts in space heating. Stronger efforts will be needed to reduce emissions from private car use, however.
Since the 2007 IEA energy policy review, Switzerland has made clear progress in electricity market reform. Moving to a fully open market by 2015 would be a further positive step. The system of regulated end-user prices, however, is subsidising electricity consumption at a time when low-carbon power supply is becoming more constrained and expensive. It should be reconsidered. Switzerland should also continue to take an increasingly European approach to developing its electricity infrastructure, to its own benefit and to that of its neighbours.
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Energy Policies of IEA Countries - The United Kingdom -- 2012 Review, 182 pages, ISBN 978-92-64-17086-5, paper €75, PDF €60 (2012) The United Kingdom is preparing for a deep decarbonisation of its energy system. The country has decided to halve its greenhouse gas emissions from 1990 to 2027 and to cut them by a total of 80% by 2050. For this to happen, significant private-sector investment in new energy infrastructure is needed.
As it seeks concrete solutions to the low-carbon investment challenge, the United Kingdom is leading by example. The UK’s proposed Electricity Market Reform is a pioneering effort that will be closely observed by other countries. Ideally, this complex and ambitious reform would in the long run lead to a more liberalised marketplace in which low-carbon power generation technologies compete to deliver innovative and least-cost outcomes.
Security of supply remains a key focus of energy policy. Fossil fuel production in the United Kingdom has peaked, and a fifth of the country’s ageing power generating capacity will have to be closed this decade. However, oil and gas imports are well diversified, and the government intends to promote various technologies to generate low-carbon electricity – renewable and nuclear energy and carbon capture and storage.
More efficient energy use is essential to both decarbonisation and energy security. The Green Deal programme, which the UK plans to launch later this year, aims to improve energy efficiency in buildings and public spaces. The programme has the potential to help energy consumers overcome economic challenges, but for it to succeed, the general public must be sufficiently aware of its benefits.
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Energy Policies of IEA Countries - The Slovak Republic -- 2012 Review, 160 pages, ISBN 978-92-64-09824-4, paper €75, PDF €60 (2012) The Slovak Republic imports virtually all of its natural gas and crude oil from a single supplier, the Russian Federation. Energy security is therefore an overarching concern and priority in the Slovak Republic’s energy policy agenda. The government is taking steps to diversify supplies and build on lessons learned from the gas supply disruption in 2009.
Enhancing regional co-operation, particularly in the development of gas and electricity interconnections, is an essential step towards meeting the dual policy objectives of enhancing energy security and market competition. The Slovak Republic has moved forward with coupling its electricity market with the Czech Republic's, and supports the construction of a North-South pipeline connection that would link planned LNG terminals in Croatia and Poland, including an interconnector to Hungary.
Despite a sharp decline in greenhouse gas (GHG) emissions since 1990, the Slovak Republic remains a GHG-intensive economy by OECD standards, with energy-related CO2 emissions accounting for over 70% of total GHG emissions. The country must continue to implement policies that ease the transition to a low-carbon economy. Nuclear power and renewable energy can play crucial roles in the Slovak Republic’s efforts to decarbonise its electricity production. Significant efforts can also be made to improve energy efficiency, especially in the transport and building sectors. District heating is a notable area with huge potential for reducing national GHG emissions.
This review analyses the energy-policy challenges currently facing the Slovak Republic, and provides sectoral studies and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.
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