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Energy Policies of IEA Countries

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Energy Policies of IEA Countries Energy Policies of IEA Countries Please note that this PDF is subject to specific restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/about/copyright.asp ITALY 2009 Review Energy Policies of IEA Countries ITALY 2009 Review The Italian government has made substantial progress in a number of sectors since the last IEA in-depth energy policy review in 2003. The success of the green certificate and white certificate schemes and continued reform of the electricity and natural gas supply markets are just a few examples and build on the recommendations contained in the previous review. Nonetheless, many challenges remain. Italy recognises the need to diversify its energy supply portfolio to reduce its heavy dependence on fossil fuels and electricity imports, and to decrease its growing greenhouse gas emissions. In 2008, the government announced its intention to recommence the country's nuclear power programme and start building a new nuclear power plant by 2013. To do so, Italy must first develop an efficient process for identifying critical energy infrastructure, including nuclear power, and subjecting it to an effective, streamlined siting and permitting process. Italy will face another major challenge in complying with Europe’s new climate and energy package, particularly in relation to renewable energy and emissions targets. The government must step up efforts to comply with its new responsibilities, specifically by developing and putting in place a comprehensive climate change strategy for the years until 2020. In mid-2009, the legislature enacted a wide-ranging new law that will facilitate the emergence of a robust long-term energy policy. The government must respond to this opportunity and elaborate, with industry, a long-term strategy for the development of the energy sector. This review analyses the energy challenges facing Italy and provides sectoral critiques and recommendations for further policy improvements. It is intended to help guide Italy towards a more sustainable energy future. (61 2009 33 1 P1) €75 ISBN 978-92-64-04343-5 -:HSTCQE=UYXYXZ: Energy Policies of IEA Countries ITALY 2009 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its mandate is two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply and to advise member countries on sound energy policy. The IEA carries out a comprehensive programme of energy co-operation among 28 advanced economies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency aims to: n Secure member countries’ access to reliable and ample supplies of all forms of energy; in particular, through maintaining effective emergency response capabilities in case of oil supply disruptions. n Promote sustainable energy policies that spur economic growth and environmental protection in a global context – particularly in terms of reducing greenhouse-gas emissions that contribute to climate change. n Improve transparency of international markets through collection and analysis of energy data. n Support global collaboration on energy technology to secure future energy supplies and mitigate their environmental impact, including through improved energy efficiency and development and deployment of low-carbon technologies. n Find solutions to global energy challenges through engagement and dialogue with non-member countries, industry, international organisations and other stakeholders. IEA member countries: Australia Austria Belgium Canada Czech Republic Denmark Finland France Germany Greece Hungary Ireland Italy Japan Korea (Republic of) Luxembourg Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain © OECD/IEA, 2009 Sweden International Energy Agency Switzerland 9 rue de la Fédération Turkey 75739 Paris Cedex 15, France United Kingdom United States Please note that this publication is subject to specific restrictions The European Commission that limit its use and distribution. also participates in The terms and conditions are available online at www.iea.org/about/copyright.sp the work of the IEA. TABLE OF CONTENTS 1 EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS ..... 9 Executive Summary ..................................................... 9 Key Recommendations ................................................. 12 PART I: POLICY ANALYSIS 2 GENERAL ENERGY POLICY ................................. 15 Country Overview....................................................... 15 The Economy ........................................................... 15 Energy Supply And Demand ........................................... 16 Institutions .............................................................. 17 Key Policies ............................................................. 19 Security of Supply ...................................................... 21 Market Reform .......................................................... 21 Energy Taxes ............................................................ 22 Critique .................................................................. 22 Recommendations ...................................................... 27 3 CLIMATE CHANGE .......................................... 29 Overview ................................................................ 29 Emissions Profile ........................................................ 30 Climate Change Policy ................................................. 33 Critique .................................................................. 38 Recommendations ...................................................... 39 4 ENERGY EFFICIENCY ....................................... 41 Overview ................................................................ 41 Policies and Measures .................................................. 43 Policies by Sector ....................................................... 46 Cross-Cutting Measures ................................................ 50 Critique .................................................................. 55 Recommendations ...................................................... 57 PART II: SECTOR ANALYSIS 5 RENEWABLE ENERGY ...................................... 61 Overview ................................................................ 61 Legal Framework ........................................................ 65 Electricity Generated from Renewables ............................... 67 Heat Generation from Renewables .................................... 71 2010 OECD/IEA, 3 © Transport Fuels from Renewables ...................................... 71 Critique .................................................................. 71 Recommendations ...................................................... 73 6 ELECTRICITY ............................................... 75 Overview ................................................................ 75 Supply and Demand ................................................... 75 Regulation .............................................................. 77 Industry Structure ...................................................... 78 Electricity Market Design ............................................... 85 Security of Electricity Supply ........................................... 88 Prices and Taxes ........................................................ 90 Critique .................................................................. 94 Recommendations ...................................................... 97 7 NATURAL GAS ............................................. 99 Overview ................................................................ 99 Supply and Demand ................................................... 99 Gas Production ......................................................... 101 Imports .................................................................. 102 Natural Gas Networks .................................................. 104 Market Design .......................................................... 109 Prices and Taxes ........................................................ 111 Infrastructure Development ............................................ 114 Natural Gas Emergency Response Policy .............................. 117 Critique .................................................................. 119 Recommendations ...................................................... 121 8 OIL ........................................................ 123 Overview ................................................................ 123 Supply and Demand ................................................... 123 Domestic Production ................................................... 124 Refining and Infrastructure ............................................ 125 Legislation and Policy .................................................. 128 Oil Markets .............................................................. 129 Emergency Response Policy and Organisation ........................ 130 Critique .................................................................. 137 Recommendations ...................................................... 139 9 COAL ...................................................... 141 Overview ................................................................ 141 Domestic Production ................................................... 141 Industry Structure .....................................................
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