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Energy Policies of IEA Countries Norway Please note that this PDF is subject to specifi c restrictions that limit its use and distribution. The terms and conditions are available online at www.iea.org/about/copyright.asp Energy Policies of IEA Countries Norway 2011 Review Energy Policies of IEA Countries Norway Norway has a unique twin role as a major oil and gas producer and a strong global advocate of climate change mitigation. As the third-largest exporter of energy in the world, it contributes to global energy security by providing reliable supplies to consuming countries. At the same time, the Norwegians highly value environmental sustainability and the country is taking climate policy very seriously. Norway also manages its petroleum resources and revenue in a commendable way, setting a model for other countries. The challenge now for the government is to stimulate further increases in natural gas and petroleum production from safe and environmentally sustainable operations. Norway’s large potential for hydropower generation is an asset, as European electricity markets are integrating and variable renewable energy generation is set to increase. More cross-border interconnections are needed to realise the full potential of hydropower for balancing variations in demand and supply in the regional market. Increased interconnections would also improve electricity security in Norway in times of low hydropower availability. Gas-fi red power plants should also be considered for use for the same purpose. In order to meet its ambitious targets to reduce greenhouse gas emissions, Norway needs to step up efforts at home. Although the dominance of low-carbon electricity in the energy mix limits the scope for domestic measures, large potential for emission reductions remains in oil and gas production, manufacturing and transport. However, measures to promote energy effi ciency and renewable energy should be carefully designed, because they often focus on electricity and would thus not reduce emissions. Recent large increases in spending on energy RD&D and ongoing efforts to develop carbon capture and storage are very welcome. -:HSTCQE=U^]VZW: (61 2011 02 1P1) 978-92-64-09815-2 €75 Energy Policies of IEA Countries Norway 2011 Review INTERNATIONAL ENERGY AGENCY The International Energy Agency (IEA), an autonomous agency, was established in November 1974. Its primary mandate was – and is – two-fold: to promote energy security amongst its member countries through collective response to physical disruptions in oil supply, and provide authoritative research and analysis on ways to ensure reliable, affordable and clean energy for its 28 member countries and beyond. The IEA carries out a comprehensive programme of energy co-operation among its member countries, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports. The Agency’s aims include the following objectives: 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 © OECD/IEA, 2011 Spain International Energy Agency Sweden 9 rue de la Fédération Switzerland 75739 Paris Cedex 15, France Turkey www.iea.org United Kingdom Please note that this publication United States is subject to specific restrictions that limit its use and distribution. The European Commission The terms and conditions are available also participates in online at www.iea.org/about/copyright.asp the work of the IEA. Table of contents TABLE OF CONTENTS 1. EXECUTIVE SUMMARY AND KEY RECOMMENDATIONS .......................................................................... 7 Executive summary ...................................................................................................................... 7 Key recommendations ............................................................................................................... 10 PART I POLICY ANALYSIS .......................................................................................................11 2. GENERAL ENERGY POLICY...................................................................................................................... 13 Country overview ....................................................................................................................... 13 Supply and demand ................................................................................................................... 13 Institutions ................................................................................................................................. 19 Key policies ................................................................................................................................. 21 Critique ....................................................................................................................................... 23 Recommendations ..................................................................................................................... 26 3. CLIMATE CHANGE .................................................................................................................................. 27 Overview .................................................................................................................................... 27 CO2 emissions from fuel combustion ......................................................................................... 27 Institutions ................................................................................................................................. 30 Policies and measures ................................................................................................................ 30 Critique ....................................................................................................................................... 34 Recommendations ..................................................................................................................... 35 4. ENERGY EFFICIENCY ............................................................................................................................... 37 Overview .................................................................................................................................... 37 Institutions ................................................................................................................................. 39 Policies and measures ................................................................................................................ 40 Critique ....................................................................................................................................... 45 Recommendations ..................................................................................................................... 48 PART II SECTOR ANALYSIS .....................................................................................................49 5. FOSSIL FUELS ......................................................................................................................................... 51 Petroleum sector ....................................................................................................................... 51 Oil ............................................................................................................................................... 57 Natural gas ................................................................................................................................. 64 2011 3 OECD/IEA, © Table of contents Coal ............................................................................................................................................ 70 Critique ....................................................................................................................................... 71 Recommendations ..................................................................................................................... 72 6. CARBON CAPTURE AND STORAGE ........................................................................................................ 75 Overview .................................................................................................................................... 75 Policy framework, funding and international engagement ....................................................... 75 Key projects ................................................................................................................................ 77
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