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2002 Review INTERNATIONAL ENERGY AGENCY prepaComp2002 12/12/02 10:58 Page 1 INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries 2002 Review INTERNATIONAL ENERGY AGENCY Energy Policies of IEA Countries 2002 Review INTERNATIONAL ENERGY AGENCY ORGANISATION FOR 9, rue de la Fédération, ECONOMIC CO-OPERATION 75739 Paris, cedex 15, France AND DEVELOPMENT The International Energy Agency (IEA) is an Pursuant to Article 1 of the Convention signed in Paris autonomous body which was established in November on 14th December 1960, and which came into force 1974 within the framework of the Organisation for on 30th September 1961, the Organisation for Economic Co-operation and Development (OECD) to Economic Co-operation and Development (OECD) shall implement an international energy programme. promote policies designed: It carries out a comprehensive programme of energy co- • to achieve the highest sustainable economic growth operation among twenty-six* of the OECD’s thirty and employment and a rising standard of living in Member countries. The basic aims of the IEA are: Member countries, while maintaining financial stability, and thus to contribute to the development • to maintain and improve systems for coping with oil of the world economy; supply disruptions; • to contribute to sound economic expansion in • to promote rational energy policies in a global Member as well as non-member countries in the context through co-operative relations with non- process of economic development; and member countries, industry and international organisations; • to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance • to operate a permanent information system on the with international obligations. international oil market; The original Member countries of the OECD are Austria, • to improve the world’s energy supply and demand Belgium, Canada, Denmark, France, Germany, Greece, structure by developing alternative energy sources Iceland, Ireland, Italy, Luxembourg, the Netherlands, and increasing the efficiency of energy use; Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States. The following • to assist in the integration of environmental and countries became Members subsequently through energy policies. accession at the dates indicated hereafter: Japan (28th April 1964), Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973), * IEA Member countries: Australia, Austria, Belgium, Mexico (18th May 1994), the Czech Republic Canada, the Czech Republic, Denmark, Finland, France, (21st December 1995), Hungary (7th May 1996), Germany, Greece, Hungary, Ireland, Italy, Japan, the Republic Poland (22nd November 1996), the Republic of Korea of Korea, Luxembourg, the Netherlands, New Zealand, (12th December 1996) and Slovakia (28th September Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the 2000). The Commission of the European Communities United Kingdom, the United States. The European takes part in the work of the OECD (Article 13 of the OECD Commission also takes part in the work of the IEA. Convention). © OECD/IEA, 2002 Applications for permission to reproduce or translate all or part of this publication should be made to: Head of Publications Service, OECD 2, rue André-Pascal, 75775 Paris cedex 16, France. FOREWORD Reviewing the energy policies of Member countries is a central activity of the International Energy Agency. Regular peer reviews have contributed substantially over the years to policy-making at the national level. Each Member country is reviewed in depth every four years. This book contains summaries of reviews of Denmark, Germany, Greece, Korea, Norway, the United Kingdom and the United States,conducted from October 2001 to June 2002.Shorter standard reviews are also included covering six other Member countries: Canada, France, Luxembourg, the Netherlands, Portugal and Sweden. An overview focuses on recent developments in the energy market and in energy policies.The subjects highlighted this year include energy security, the progress of Member countries in regulatory reform, their actions to meet the Kyoto greenhouse gas emission targets and their R&D policies as well as developments in major non- member countries. Key statistical information is also included. Robert Priddle Executive Director 3 ACKNOWLEDGEMENTS Much of the information in this report is drawn from in-depth reviews conducted by representatives of IEA Member countries and members of the IEA Secretariat. The information contained in this publication is the best available as of July 2002 and is subject to change. The desk officer listed in each team was responsible for managing the review and was principal author of the report, which has also been published in a separate volume and appears in summary form here. The desk officers also wrote the shorter standard reviews included here. Shigetaka Seki, the outgoing head of the Country Studies Division, and Jun Arima, its incoming head, supervised preparations for this book and wrote the Energy Market Trends section. Many members of the IEA staff contributed to this book. Major contributions came from Shigetaka Saki (energy security). Carlos Ocaña (electricity), Sylvie Cornot-Gandolphe (gas), John Cameron (coal), Jonathan Pershing (environment), Mitsuhide Hoshino (R&D), Laurent Dittrick (renewables), Xavier Chen (China), Pierre Audinet (India), Bret Jacobs (South-East Asia), Sylvie d’Apote (Latin America), Emmanuel Bergasse (central and south-eastern Europe), Isabelle Murray (Russia), Meredydd Evans (Ukraine and Baltics), Dunia Chalabi (Gas Grid Project in the Middle East). Karen Treanton and Pierpaolo Cazzola prepared the Key Statistics and Indicators, Monica Petit prepared the figures, and Marilyn Ferris provided administrative assistance for the project. 2001–2002 In-depth Reviews Austria At the time of publication this report is under preparation. The summary of conclusions and recommendations will be included in the 2003 edition. Denmark Team Leader: Miklós Poós (Hungary). Team members: Bryan Cook (Canada), Ove Flataker (Norway), Virginie Schwarz (France), Johannes Enzmann (European Commission, EC), Shigetaka Seki (IEA), Kristi Varangu (IEA). Desk Officer: Gudrun Lammers (IEA). Germany Team Leader: Robert S. Price (United States). Team members: Graham Bryce (United Kingdom), Sven-Olov Ericson (Sweden), Mikio Aoki (Japan), Håkan Karlström (EC), Peter Wilmer (NEA), Olivier Appert (IEA) Sylvie Cornot-Gandolphe (IEA). Desk Officer: Lea Gynther (IEA). 5 Greece Team Leader: Christophe Baulinet (France). Team members: Gerhard Behnke (Germany) Håvard Vaggen Malvik (Norway), Manfred Decker (EC), Shigetaka Seki (IEA). Desk Officer: Lea Gynther (IEA). Korea Team Leader: Olivier Appert (IEA). Team members: Paul Kay (Australia), Noriyuki Shikata (Japan), Peter Wilmer (NEA), Peter Fraser (IEA), Izuru Shimmura (IEA). Desk Officer: Pierre Audinet (IEA). Norway Although the in-depth review for Norway was conducted in the 2000-2001 review cycle, the timing of its publication meant that the summary of conclusions was unable to appear in Energy Policies of IEA Countries – 2001 Review. Team Leader: Didier Houssin (France). Team members: David Burpee (Canada), Kevin Williamson (United Kingdom),Magnus Thorstensson (Sweden),Olivier Appert (IEA), Martina Bosi (IEA). Desk Officer: John Cameron (IEA). United Kingdom Team Leader: Kenji Kobayashi (Japan). Team members: Siw Anette Rinker (Norway), Timo Pekka Aaltonen (EC), Evelyne Bertel (NEA), Alain Bilot (IEA), Shigetaka Seki (IEA), Ralf Dickel (IEA). Desk Officer: Gudrun Lammers (IEA). United States Team Leader: Neil Hirst (United Kingdom). Team members: Doug Cooke (Australia), Dieter Kunhenn (Germany), Peter Wilmer (NEA), Olivier Appert (IEA), Richard Baron (IEA). Desk Officer: John Cameron (IEA). Standard Reviews Canada – Pierre Audinet; France – Gudrun Lammers; Luxembourg – Lea Gynther; Netherlands – Gudrun Lammers; Portugal – Lea Gynther; Sweden – Jonathan Coony. 6 TABLE OF CONTENTS Foreword .................................................. 3 Acknowledgements ......................................... 5 PART1 OVERVIEW OF ENERGY POLICY AND MARKET DEVELOPMENTS .. 11 Introduction ............................................. 13 Market Trends ........................................... 17 • Energy Demand: OECD .................................. 17 • Energy Consumption by Sector: OECD ..................... 24 • World Energy Production ................................. 28 • Energy Prices ............................................ 32 • Energy Intensity and CO2 Emissions ....................... 45 Energy Security ......................................... 53 • Recent Developments ..................................... 53 • Energy Security and Sustainable Development .............. 55 • Energy Security and Market Liberalisation .................. 55 • Approaches to Security ................................... 56 • Prospects for Each Fuel ................................... 57 • The Implications of 11 September ......................... 59 • International Co-operation ................................ 59 Energy Market Reform ................................. 61 • Electricity ............................................... 61 • Gas .................................................... 67 • Coal .................................................... 73 Climate Change Policies in IEA Member Countries .... 77 • Fiscal Measures .......................................... 81 • Regulatory Policies ......................................
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