Browse by: "2016"

Carbon capture and storage (CCS) technologies are expected to play a significant part in the global climate response. Following the ratification of the Paris Agreement, the ability of CCS to reduce emissions from fossil fuel use in power generation and industrial processes – including from existing facilities – will be crucial to limiting future temperature increases to “well below 2°C,” as laid out in the Agreement. CCS technology will also be needed to deliver “negative emissions” in the second half of the century if these ambitious goals are to be achieved.

CCS technologies are not new. This year is the 20th year of operation of the Sleipner CCS Project in Norway, which has captured almost 17 million tonnes of CO2 from an offshore natural gas production facility and permanently stored them in a sandstone formation deep under the seabed. Individual applications of CCS have been used in industrial processes for decades, and projects injecting CO2 for enhanced oil recovery (EOR) have been operating in the United States since the early 1970s.

This publication reviews progress with CCS technologies over the past 20 years and examines their role in achieving 2°C and well below 2°C targets. Based on the International Energy Agency’s 2°C scenario, it also considers the implications for climate change if CCS was not a part of the response. And it examines opportunities to accelerate future deployment of CCS to meet the climate goals set in the Paris Agreement.

Lack of energy access and frequent electricity shortages are major impediments to economic growth in sub-Saharan Africa. Over 635 million people live without electricity in the region. Because the overall electrification rate remains at less than one-third of the population, the region needs increased investment in the power sector.

As part of their increasing activity in overseas markets, companies from the People’s Republic of China have significantly enhanced their engagement in Africa in the last 15 years, covering a wide range of sectors, including the electricity industry. Chinese-built projects and financial support from China are contributing to power sector development, extending energy access and facilitating economic growth.

This report analyses China’s engagement in the sub-Saharan Africa power sector, including the key drivers underlying Chinese investments. An overview of Chinese projects (generation, transmission and distribution) during the 2010-20 period is provided in this first-ever consolidated effort to map them.

The report identifies the key Chinese stakeholders and assesses their impact on policies affecting energy access, economic development and financing modalities. Two case studies examine Chinese investment at the country level in Ghana and Ethiopia.

In recognition of the fundamental importance of understanding energy related environmental issues, the IEA CO2 Emissions from Fuel Combustion provides a full analysis of emissions stemming from energy use. This annual publication has become an essential tool for analysts and policy makers in many international fora such as the Conference of the Parties, which will be meeting in Marrakesh, Morocco, from 7 to 18 November 2016.

The data in this book are designed to assist in understanding the evolution of the emissions of CO2 from 1971 to 2014 for 150 countries and regions by sector and by fuel. Emissions were calculated using IEA energy databases and the default methods and emission factors from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories.

Belarus, like many countries around the world, faces the challenge of diversifying its energy mix and enhancing its energy security while also reducing greenhouse gas emissions. One of its priorities is to lower its heavy reliance on natural gas imports from Russia by producing more low-emission energy domestically, including renewable and nuclear power. And while Belarus has managed to decouple energy demand from economic growth, a big potential remains for improved energy efficiency due to the country’s inefficient Soviet-era infrastructure and insufficient investments in energy.

Thanks to a favourable regulatory environment and a promising potential for renewables, the IEA selected Belarus for a pilot study for the Clean Energy Technology Assessment Methodology (CETAM). This methodology, developed with the European Bank of Reconstruction and Development (EBRD), aims to provide clear, transparent information about clean energy technology markets in emerging economies. The programme’s goal is to identify the most promising technologies for policy support and investment and to establish metrics for tracking their deployment over time.

This report assesses the range of technological options in Belarus on both the demand and supply side to determine which show the most potential for further development, in line with the country’s policy goals and resource endowment. Appropriate policies and measures that support a well-functioning market for the development of local renewable sources would help the government reach its energy security targets and reduce greenhouse gas emissions. Closer monitoring of priority energy efficiency technologies would allow Belarus to implement planned measures more effectively and optimise its energy savings potential.

Oil exports play a major role in the economic development of Kazakhstan, the largest petroleum producer in Central Asia. But the country’s vast plains also hold significant renewable energy potential that remains largely untouched, particularly solar and wind power. This major potential could help the country reach its ambitious goals of diversifying most of its electricity generation away from coal use while cutting harmful greenhouse gas emissions. Improving the country’s ageing Soviet-era infrastructure also holds significant promise for advancing energy efficiency.

The International Energy Agency selected Kazakhstan as a key player in regional efforts to deploy low carbon technologies in Central Asia for a pilot study developed with the European Bank of Reconstruction and Development. This Clean Energy Technology Assessment Methodology programme aims to provide clear and transparent information about renewable energy and energy efficiency technology markets, with the goal of identifying the most promising technologies for policy support and investment and establishing metrics for tracking their deployment over time.

This report assesses a range of technological options in Kazakhstan on both the demand and supply side to determine which show the most potential for further development, in line with the country’s policy goals and resource endowment. Appropriate policies and measures that support effective renewables deployment and grid integration would help Kazakhstan reach its diversification targets sooner. Phasing-out of energy subsidies and developing in-depth monitoring indicators would allow the country to better track the implementation of planned energy efficiency measures and optimise its energy savings potential.

To reduce its heavy dependence on imported fossil fuels, achieve its ambitious climate goals and meet growing energy demand, the Moroccan government has launched a comprehensive plan to increase the share of renewable energy and improve energy efficiency. It set a target of 42% of its installed electricity generation capacity to come from renewable sources, with the goal rising to 52% by 2030. At the same time, Morocco aims to reduce its energy consumption by 12% by 2020, and 15% by 2030 through increased energy efficiency.

Due to the country’s determination to increase energy efficiency and its supportive policy environment, the IEA selected Morocco for a pilot study of the new Clean Energy Technology Assessment Methodology (CETAM). This methodology, developed with the European Bank of Reconstruction and Development (EBRD), aims to provide clear, transparent information about clean energy technology markets in emerging economies. The goal is to identify the most promising clean energy technologies for policy support and investment and to establish metrics for tracking their deployment over time.

Morocco has an abundance of renewable resources, especially wind and solar power, and is a regional leader in deploying clean energy technologies. This report assesses the range of technological options on both the demand and supply side to determine which show the most potential for further development, in line with the country’s policy goals and resource endowment.

Coal Information provides a comprehensive review of historical and current market trends in the world coal sector, including 2015 provisional data. It provides a review of the world coal market in 2015, alongside a statistical overview of developments, which covers world coal production and coal reserves, coal demand by type, coal trade and coal prices. A detailed and comprehensive statistical picture of historical and current coal developments in the 34 OECD member countries, by region and individually is presented in tables and charts. Complete coal balances and coal trade data for selected years are presented on 22 major non-OECD coal-producing and -consuming countries, with summary statistics on coal supply and end-use statistics for about 40 countries and regions worldwide.

Coal Information is one of a series of annual IEA stat ist ical publ ications on major energy sources; other reports are Electricity Information, Natural Gas Information, Oil Information and Renewables Information.

Electricity Information provides a comprehensive review of historical and current market trends in the OECD electricity sector, including 2015 provisional data. It provides an overview of the world electricity developments in 2014 covering world electricity and heat production, input fuel mix, supply and consumption, and electricity imports and exports. More detai l is provided for the 34 OECD countries wi th information covering production, instal led capacity, input energy mix to electricity and heat production, consumption, electricity trades, input fuel prices and end-user elect rici ty prices. I t provides comprehensive stat ist ical detai ls on overall energy consumption, economic indicators, electricity and heat production by energy form and plant type, electricity imports and exports, sectoral energy and electricity consumption, as well as prices for electricity and electricity input fuels for each country and regional aggregate.

Electricity Information is one of a series of annual IEA stat ist ical publ ications on major energy sources; other reports are Coal Information, Natural Gas Information, Oi l Information and Renewables Information.

Often called the “first fuel” of the global energy system, energy efficiency is one of the most important steps that any government can take to move towards a sustainable energy system.

To check on the progress made on this front, the IEA Energy Efficiency Market Report tracks the core indicators of energy efficiency. This year, the report takes a new approach and expands the scope of analysis by examining the drivers of energy efficiency programmes in emerging economies, as well as the impact of those policies.

Some of the questions that are addressed in this year’s report include:

• Which countries and policies are having the greatest impact, and what is the recipe for their success?
• Are we improving energy efficiency fast enough to achieve our climate goals?
• What is the size of energy efficiency investments around the world and in key energy-consuming sectors?
• What has been the impact of low energy prices on these efficiency investments?
• What are the benefits of efficiency programmes on climate policy, energy security and public budgets?
• What are the market trends for energy efficiency services and financing?

The Energy Efficiency Market Report is the global tracker for energy efficiency programmes, providing policy makers and the private sector with insights on the latest trends and market prospects.

In recent years, Belgium has made clear progress in increasing competition in the electricity and natural gas markets. It has also managed to reduce the use of fossil fuels and increase the use of renewable energy. The country´s economy is becoming less energy intensive.

Belgium has excellent gas transport infrastructure, and its gas market is well-integrated with those of its neighbours. The country’s emergency oil stock levels are also high.

As in all IEA member countries, a major challenge for Belgium is to decarbonise the economy while ensuring security of supply and affordability of energy. A long-term approach is required, and, given that responsibility for energy policy is divided between the federal and regional governments, the authorities must work decisively together to form a national energy strategy.

Nuclear energy accounts for around half of Belgium’s electricity generation. The current policy is to close all nuclear power plants between 2022 and 2025, but this would seriously challenge Belgium’s efforts to ensure electricity security and provide affordable low-carbon electricity. The phase-out schedule should be relaxed to let the plants run as long as the regulator considers them safe.

To attract critical investments in the energy sector – especially in electricity generation – the government should follow closely the principles of transparency, predictability and regulatory certainty.

Under any scenario, energy supply needs to be further diversified and energy demand further limited. Transport and buildings hold a large potential for efficiency and climate gains, and fiscal incentives and price signals could be used more frequently in order to reap them.

Canada has continued to harvest its vast natural resources and witnessed a shale revolution alongside rising oil sands production and investment in the energy sector over the past five years. The medium-term outlook for gas/oil production and exports, however, is challenging amid uncertainties around pipeline developments and an era of low prices, abundant global supplies and surging production in the United States, Canada’s main export market.

Canada maintains the highest energy supply per capita among IEA member countries. Emissions from the oil and gas sectors increased by 14% in 2005-13, despite Canada’s low-carbon electricity mix (largely hydro and nuclear). The federal government, with the provinces, has put forward stringent energy efficiency and emission standards in the buildings, power and transport sectors, but not in industry. To strengthen its position as responsible energy supplier and user, Canada must take action to mitigate emissions and energy intensity. It can continue to develop its resources in a sustainable and cost-effective manner while balancing its economic and sustainability goals.

Canada remains at the forefront of technological and regulatory innovation in unconventional oil and gas production and carbon capture and storage (CCS) with four large-scale CCS projects under way in 2015. The country has adopted ambitious climate targets at provincial and federal levels, but the federation is far from meeting its targets for 2020 and 2030. In July 2015, the Premiers of the provinces and territories agreed a Canadian Energy Strategy. The IEA urges the federal government to seize this opportunity for collective action to meet its 2030 goals and bring certainty to investment in clean-energy technologies and renewables.

This in-depth review analyses the energy policy challenges facing Canada and provides recommendations for each energy sector, including advice for the implementation of the Canadian Energy Strategy.

One of the largest economies in the world, Japan has long been a major consumer and importer of energy and a recognised leader in energy technology development. Japan’s energy policy has been dominated in recent years by its efforts to overcome the fallout from the 2011 earthquake and the subsequent Fukushima nuclear accident. One consequence of the accident was a gradual shutdown of all nuclear power plants, which has led to a significant rise in fossil fuels use, increased fuel imports and rising carbon dioxide emissions. It has also brought electricity prices to unsustainable levels.

Faced with these challenges, the government of Japan has revised its energy policy in recent years to focus on further diversifying its energy mix (less use of fossil fuels, more reliance on renewable energy, restarting nuclear plants when declared safe) and curbing carbon emissions. Building on these plans, Japan has outlined ambitious goals to cut greenhouse gas emissions by 26% between 2013 and 2030.

This emissions reduction commitment requires a balancing act between energy security, economic efficiency, environmental protection and safety. This International Energy Agency (IEA) review of Japan’s policies highlights three areas that are critical to its success: energy efficiency, increasing renewable energy supply and restarting nuclear power generation. The IEA encourages Japan to increase low-carbon sources of power supply. It also recognises that nuclear power can only be restored provided that the highest safety standards are met and the critical issues following the Fukushima accident are addressed, including decontaminating areas affected by the radioactive release and regaining public trust.

This review analyses the energy policy challenges facing Japan and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.

Despite the difficult economic climate, Portugal has continued to develop and reform its energy policies since the previous International Energy Agency (IEA) in-depth review in 2009. These changes have resulted in greater economic activity in the energy sector, increased renewable energy deployment, further market liberalisation and greater emphasis on energy efficiency in policy making.

A new strategy emphasising renewable energy and energy efficiency has focused efforts on meeting national and European energy policy objectives, as Portugal seeks also to lower investment costs and greater national competitiveness. The new strategy includes proposals to reinforce interconnections with transnational European electricity and natural gas networks, and measures to promote economic and environmental sustainability. The strategy should accommodate regular independent reviews and monitoring tools to examine implementation of energy policy to ensure that it remains relevant and cost-effective.

Following the economic crisis, Portugal was left with a substantial tariff deficit as retail electricity tariffs were set below costs, including subsidies to renewables. Portugal’s plan to address the tariff deficit was the outcome of a negotiation process with industry stakeholders. Eliminating the tariff debt by 2020 is a significant challenge. The government must ensure swift implementation of all reform proposals and continue its efforts to identify further potential cost-saving measures in the energy sector.

This review analyses the energy policy challenges facing Portugal and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future.

Since the last International Energy Agency (IEA) review of Turkey’s energy policies, the country’s reliance on natural gas use has grown along with rising oil and gas imports, leaving the Turkish economy increasingly exposed to the volatility in oil and gas prices. Turkey aims to promote sustainable economic growth - the IEA urges the government to set a longer term energy policy agenda for 2030. However, owing to declining global liquefied natural gas prices, Turkey now has an opportunity to reduce its single supplier dependence, build a competitive gas market, and move ahead with its plans to create a regional gas hub.

Turkey’s power sector reforms have attracted private investment and fostered economic growth and energy access. Integration into a regional gas and electricity trade framework is moving along as a result of the first interconnection of Turkey with the European electricity grid and the construction of the Trans-Anatolian Natural Gas Pipeline that will deliver gas from the Caspian to Turkey and the European Union.

In that context, the IEA urges Turkey to complete the liberalisation of its electricity and gas markets in order to attract critically needed investment. The review also notes that Turkey should set up independent transmission system operators, competitive wholesale markets, and foster resilient and modern gas and electricity infrastructure.

This review analyses the energy policy challenges facing Turkey and provides recommendations for further policy improvements. It is intended to help guide the country towards a more secure, sustainable and affordable energy future.

Cities drive economic growth but can also drive sustainable change. As the share of the world’s population living in cities rises, ambitious action in urban areas can be instrumental in achieving long‑term sustainability of the global energy system – including the carbon emission reductions required to meet the climate goals reached at COP21 in Paris. Support from national governments is a strategic prerequisite for leveraging the potential for sustainable energy technology and policy in cities that too often lies untapped.

With global energy demand set to become even greater over the coming decades, Energy Technology Perspectives 2016 (ETP 2016) looks at the technology and policy opportunities available for accelerating the transition to sustainable urban energy systems. Such potential could be the key to successfully driving an energy transition that many still think impossible, provided that local and national actions can be aligned to meet the sustainability objectives at both levels. Indeed, policies still have a long way to go in this regard: ETP 2016 presents the annual IEA Tracking Clean Energy Progress report, which finds once again that despite some notable progress, the rate of needed improvements is far slower than required to meet energy sector sustainability goals.

By setting out sustainable energy transition pathways that incorporate detailed and transparent quantitative analysis alongside well-rounded commentary, ETP 2016 and its series of related publications have become required reading not only for experts in the energy field, policy makers and heads of governments, but also for business leaders and investors.

The historic Paris Agreement on climate change sets the course for a fundamental transformation of the global economy over the next decades. The Agreement’s overarching goal of limiting global average temperature rise to “well below 2°C” will entail profound changes in the global energy system. Achieving the deep cuts in global carbon emissions that this vision requires is no small task given the enormous challenge of implementing – and eventually exceeding – current country climate pledges. This publication examines key sectors, technologies, and policy measures that will be central in the transition to a lowcarbon energy system. It addresses the following questions:

• What are the roles of coal and gas in meeting the stringent decarbonisation requirements for the power sector consistent with IEA modelling of global climate goals?
• What are moderate carbon prices accomplishing in the electricity sector, and how can they be helpful as part of a package of other policies?
• Where are the opportunities for expanding renewables and energy efficiency, and what policies and regulatory frameworks are needed to boost these low-carbon energy sources?
• How can state-owned companies, which produce a large share of global GHG emissions but are also major developers of clean energy, be encouraged to play a more effective role in the energy transition?

This report also looks at building climate resilience in the energy sector, and the use of tracking tools and metrics to monitor the progress of energy sector decarbonisation. Finally, it provides global energy and emissions data, including interregional comparisons and in-depth analysis for ten regions.

This report aims to shed light on how EECCA countries and development co-operation partners are working together to finance climate actions, using the OECD DAC database to examine finance flows by provider, sector, financial instrument, channel, etc. A significant amount was committed by international public sources to the 11 countries comprising the EECCA in 2013 and 2014 (i.e. USD 3.3 billion per year), but the scale of such finance varies considerably from country to country and is insufficient to achieve and strengthen their climate targets communicated through the Intended Nationally Determined Contributions COP21.

In addition, while a range of climate-related policies have already been developed by the EECCA countries, the extent to which such policies are being effectively implemented and conducive to attracting climate finance is still unclear. In this respect, this report proposes a set of questions for the EECCA countries to self-assess their readiness to seize opportunities to access scaled-up climate finance from various sources: public, private, international and domestic.