Most energy efficiency policies are justified on the basis of energy savings, together with contributions to energy security and climate change mitigation. However, improved energy efficiency also delivers additional, non-energy benefits for individuals, the broader economy, and society. We call this the “multiple benefits” of energy efficiency. These benefits include various macroeconomic benefits (e.g. shifts in energy trade balances and employment), increased access to energy, and affordability of energy services, reduced air pollution, and fiscal improvements for national and sub-national entities.
Current energy market structures were designed to secure supply while at the same time they may create incentives to reduce overall costs of electricity production in an oligopolistic market. In the transition towards a low-carbon economy, global and local energy markets are undergoing profound changes.
The International Energy Agency and the National Development and Reform Commission (NDRC) of the People’s Republic of China have signed a Memorandum of Understanding (MoU) on energy efficiency collaboration. Mr Zhang Yong, Vice Chairman of the NDRC, and Dr Fatih Birol, the IEA’s Executive Director signed the agreement at the IEA headquarters in Paris today.
The Renewables Policy Forum also included the launch of the IEA’s 20 Renewable Energy Policy Recommendations. “These 20 recommendations provide guiding principles for policy-making, based on best practice observed across IEA member states and partner countries, and can be adapted to suit specific national and local circumstances” said Ute Collier, Senior Renewables Analyst at the IEA. The forum reviewed global deployment of solar technologies and solar innovation, as well as the issue of scaling up solar deployment and how to attract investment.
Both global oil demand and supply are now close to new, historically significant peaks at 100 mb/d, and neither show signs of ceasing to grow any time soon. Fifteen years ago, forecasts of peak supply were all the rage, with production from non-OPEC countries supposed to have started declining by now. In fact, production has surged, led by the US shale revolution, and supported by big increases in Brazil, Canada and elsewhere. In future, a lot of potential supply could come to the market from places like Iran, Iraq, Libya, Nigeria and Venezuela, if their various challenges can be overcome.
BERN – Switzerland has the lowest carbon-intensity of its energy supply among all IEA countries thanks to a largely carbon-free electricity sector dominated by hydro and nuclear generation. However, with the country’s 2017 decision to gradually phase-out nuclear power, Switzerland faces a considerable energy-sector transition in coming decades.
Modern bioenergy will have the biggest growth in renewable resources between 2018 and 2023, underscoring its critical role in building a robust renewable portfolio and ensuring a more secure and sustainable energy system, according to the International Energy Agency’s latest market forecast.
Dr Fatih Birol, the International Energy Agency’s executive director, met with Werner Hoyer, President of the European Investment Bank, to discuss areas of mutual interest and cooperation.
Petrochemicals – components derived from oil and gas that are used in all sorts of daily products such as plastics, fertilisers, packaging, clothing, digital devices, medical equipment, detergents and tyres – are becoming the largest drivers of global oil demand, in front of cars, planes and trucks, according to a major study by the International Energy Agency.
The IEA released today Towards a competitive natural gas market in Brazil: A review of the opening of the natural gas transmission system in Brazil. This paper represents the final outcome of the IEA-Brazil gas market peer-review and dialogue process in which experts from the IEA Secretariat and IEA member countries developed policy recommendations for Brazil’s Gas to Grow (Gás para Crescer) initiative.
The IEA released today a pair of reports on energy transitions in G20 countries, describing progress and challenges along the path towards modernising and diversifying our economies, improving energy security, securing energy access, improving air quality, and of course mitigating climate change.
Dr Fatih Birol, the Executive Director of the International Energy Agency, visited Baku to meet with Mr Parviz Shahbazov, Energy Minister of the Republic of Azerbaijan. Dr Birol and Mr Shahbazov discussed the Southern Gas Corridor and its role in improving energy security by increasing the diversity of sources and delivery routes of gas to Europe.
Since the previous edition of this Report, the price of Brent crude oil fell close to $70/bbl and is now flirting with $80/bbl. Two reasons for the swing are that Venezuela’s production decline continues, and we are approaching 4 November when US sanctions against Iran’s oil exports are implemented. In Venezuela, production fell in August to 1.24 mb/d and, if the recent rate of decline continues, it could be only 1 mb/d at the end of the year. Evidence provided by tanker tracking data suggests that Iran’s exports have already fallen significantly but we must wait to see if the 500 kb/d of reductions seen so far will grow. (See Iran supply tumbles as buyers take heed of US sanctions).
Investments are leading indicators of the direction of change in the energy sector. This is particularly true for investments in innovation and digitalisation, so-called “intangible assets” that will shape the technologies for supplying and using energy in the decades to come.
The IEA held a workshop on natural gas market design in Brazil on 23 August, hosted by the Brazilian Ministry of Mines and Energy (MME). The workshop was part of the IEA-Brazil gas market peer-review and dialogue process in which experts from the IEA and IEA member countries developed policy recommendations for Brazil’s Gas to Grow (Gás para Crescer) initiative. The event provided the opportunity for IEA experts to present their preliminary evaluations and recommendations for Brazil, based on experience with the reform of the European natural gas market.
More than 100 participants from 15 countries, largely from Southeast Asia, convened in Singapore from 28 to 30 August for the Singapore-IEA Clean Energy Investment and Financing Training Programme. This programme aims to increase knowledge and skills for decision making on policies and regulatory frameworks that mobilise bankable investments in renewables and energy efficiency across the region.
It has been a summer of broken heat records in the northern hemisphere, from Japan to Spain and Oman to Canada. News headlines have underscored the heavy toll that extreme heat can bear on human health and lives, with prolonged high temperatures further fuelling droughts and wildfires. Yet it is also important to recognize the less obvious impacts on the fundamental systems and services upon which we all depend, including energy.