Browse by: "2016"

Analysis on coal often tends to be one-sided. But to truly understand the important role that coal plays, for better or worse, in the global energy system, it is critical that we examine both sides of the coin. This means understanding the implications of climate agreements on the future for coal while at the same time coming to terms with what coal is doing – and will continue to do – for energy security and energy access in developing and emerging economies.

This means taking a close look at those emerging economies, specifically in South and Southeast Asia. For example, given China’s dominance in coal markets, the main problem for the coal industry is adjusting to how Chinese demand and imports will evolve in the future. In India, already the second largest coal consumer in the world, coal use is expected to grow. Will this trigger imports? Viet Nam, a net exporter until 2014, is building coal power plants at a fast pace. How much coal will they need to import? Where will that coal come from?
Meanwhile, despite an increase in the price of natural gas price in the United States, coal consumption continues to drop. Is this decline inevitable? The last coal plants closed in Belgium and Scotland in 2016 while other European nations have announced the end of coal generation. Is coal going to disappear forever from Europe? At the same time, banks and funds are turning away from coal financing. Will this bring a halt to construction of new coal power plants?

The Medium-Term Coal Market Report 2016 addresses these questions and more, providing insight into the drivers of coal demand, supply and trade through 2021.

As the energy system becomes more globalised and interconnected, gas security challenges are evolving. The current period of gas oversupply – driven by overcapacity in the LNG market – should not overshadow the critical importance of global gas security.

Global Gas Security Review 2016, the first edition of a new annual series, examines the evolving global gas market structures and looks at the market’s ability to respond to potential shocks. It shows that the current situation could lead to a false sense of comfort about gas security, which could evaporate quickly once market conditions change.

The report also analyses how LNG markets responded to the Fukushima accident through case studies focusing on Japan and Europe. Both regions have fuelswitching potential but also face structural changes as coal and oil-fired capacity retires, affecting the gas market’s flexibility to respond to overall shocks.

Global Gas Security Review 2016 also addresses two critical forward-looking questions: how much redundancy is embedded in the LNG upstream and liquefaction chain, and how flexible is LNG production?

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.

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.

The landmark Paris Agreement on climate change will transform the global energy system for decades to come.

The latest World Energy Outlook offers the most comprehensive analysis of what this transformation of the energy sector might look like, thanks to its energy projections to 2040. It reviews the key opportunities and challenges ahead for renewable energy, the central pillar of the low- carbon energy transition, as well as the critical role for energy efficiency.

WEO-2016 examines how a post-Paris world redefines the idea of energy security, particularly in the power sector, the frontline in the fight against climate change. The report explores how oil, natural gas and coal are adjusting to today’s market conditions and assesses the risks that lie ahead, from under-investment in essential supply to stranded assets.

WEO-2016 looks at individual country pledges and examines how   close – or far – nations are from reaching their goals. It outlines a course that would limit the rise in global temperature to below 2 °C and also plots possible pathways for meeting even more ambitious goals.

This year, WEO-2016 also devotes a special chapter to the critical interplay between water and energy, with an emphasis on the stress points that arise as the linkages between these two sectors intensify.

Mexico is recasting its entire energy system, in line with a far-reaching Energy Reform package adopted by the government in 2013. How might the multiple changes being implemented today change the energy scene of tomorrow?

This analysis provides a comprehensive assessment of Mexico’s energy demand and supply outlook to 2040.

The report:

• Maps out the implications of the Reforma Energética across the energy economy.
• Explores the ambition of a reformed power market to meet rising demand, while tapping Mexico’s abundant renewable resources and reducing the costs of power supply.
• Assesses how and when the new upstream bid rounds can turn around today’s declines in oil and gas output
• Identifies the challenges that remain, while also quantifying the value of Mexico’s energy transformation in a “No Reform Case”.

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.

Energy efficiency improvements over the last 25 years saved a cumulative USD 5.7 trillion in energy expenditures. This virtual supply of energy generates multiple benefits for governments, businesses and households, including greater energy security from reduced dependence on energy imports and billions of tonnes of greenhouse gas emissions reductions.

Strengthening our understanding of the energy efficiency market and the prospects over the medium term is becoming increasingly important. The 2015 Energy Efficiency Market Report (EEMR) evaluates the impact of energy efficiency in the energy system and assesses the scale and outlook for further energy efficiency investment using detailed country-by-country energy efficiency indicator data and IEA expertise.

This year’s report includes an in-depth look into the buildings energy efficiency market and the electricity sector. Energy efficiency investments in the buildings sector totalled between USD 90 billion in 2014. In the electricity sector, energy efficiency has proved critical in flattening electricity consumption in Organisation for Economic Co-operation and Development member countries, driving utilities to adapt their business models.

Promoting and expanding energy efficiency markets is a worldwide phenomenon, and EEMR 2015 presents a number of case studies at the national, state and municipal level. These include examinations of Latin America’s two largest economies, Brazil and Mexico, which are looking to efficiency to boost productivity and social development. Energy-exporting countries like Saudi Arabia and the Russian Federation are also increasingly turning to efficiency to increase exports and reduce the costs of growing domestic energy consumption. In addition to national governments, major urban areas such as Tokyo, Seoul and Paris are increasingly enabling energy efficiency investment.

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.

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.

The IEA produced its first handy, pocket-sized summary of key energy data in 1997 and every year since then it has been more and more successful.

Key World Energy Statistics contains timely, clearly-presented data on supply, transformation and consumption of all major energy sources.

The interested businessman, journalist or student will have at his or her fingertips the annual Australian production of coal, the electricity consumption in Japan, the price of diesel oil in Spain and thousands of other useful energy facts.

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.

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.

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.

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.

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.

In this inaugural annual report on energy investments around the world, the International Energy Agency (IEA) looks at the lifeblood of the global energy system: investment. The ability to attract and direct capital flows is vital to transitioning to a low-carbon economy while also maintaining energy security and expanding energy access worldwide. The success or failure of energy policies can be measured by their ability to mobilise investments.

The new report measures in a detailed manner the state of investment in the energy system across technologies, sectors and regions. The analysis takes a comprehensive look at the critical issues confronting investors, policy-makers, and consumers over the past year.

World Energy Investment 2016 addresses key questions, including :

• What was the level of investment in the global energy system in 2015? Which countries attracted the most capital?
• What fuels and technologies received the most investment and which saw the biggest changes?
• How is the low fuel price environment affecting spending in upstream oil and gas, renewables and energy efficiency? What does this mean for energy security?
• Are current investment trends consistent with the transition to a low-carbon energy system?
• How are technological progress, new business models and key policy drivers such as the Paris Climate Agreement reshaping investment?

World Energy Investment 2016As a unique benchmark of current investment trends, serves as a complement to the forecasts and projections found in other IEA publications and provides a critical foundation for decision making by governments and industry.

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.

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.