Worle Energy Investment 2016
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World Energy 20 Investment 16 World Energy 20 Investment 16 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 29 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 Estonia Finland France Germany Secure Greece Sustainable Hungary Together Ireland Italy Japan Korea Luxembourg Netherlands New Zealand Norway Poland Portugal © OECD/IEA, 2016 Slovak Republic International Energy Agency Spain 9 rue de la Fédération Sweden 75739 Paris Cedex 15, France Switzerland www.iea.org Turkey 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 also participates in available online at www.iea.org/t&c/ the work of the IEA. Foreword Investment is the lifeblood of the global energy system. Money invested today in our energy systems, in large-scale power plants and transmission lines, home energy efficiency upgrades or innovative low-carbon technologies will have a lasting influence on energy supply and demand for decades to come. A sustainable, prosperous and healthy future for the world depends on these investment decisions, which are shaped by market frameworks and ultimately determined by government policies. One year ago, I began my new role as Executive Director of the International Energy Agency (IEA) by presenting a new vision for the Agency that is founded on three pillars: opening the doors of the IEA to emerging economies, a strengthened and broadening commitment to energy security, and bolstering the role of the IEA as an international hub for clean energy technology and energy efficiency. The need for timely and cost-effective investments underpins policy goals across these three pillars. With World Energy Investment 2016 we are taking a big step forward. We hope this new annual series will provide a unique benchmark of all the main energy-related investments happening around the world today. It also shines a light on the implications of these investments for energy security, low-carbon energy and energy markets. It is critically important to properly measure and understand what is happening in boardrooms, banks, or construction sites around the world to make sure that the right decisions are made by public and private actors. By moving closer to what is happening on the ground, our aim is to provide decision makers with a tool to assess current trends and identify opportunities. This work on investment complements our other regular IEA publications and is enabled by our close work with governments and businesses, whose insights and contributions have been invaluable. The critical importance of energy investment to global prosperity will grow as countries look for ways to meet their climate goals and hundreds of millions of people gain access to modern energy services. Whether the objective is to build systems that are resilient to supply shocks or to deploy low-carbon technologies in a timely manner, the ability to mobilise investment is ultimately the key determinant of the success or failure of an energy policy. As we continue to implement the three pillars of our new vision, measuring investment flows and assessing their implications for the global energy system will be priorities for the IEA. Dr Fatih Birol Executive Director International Energy Agency Foreword 3 Acknowledgements This report was prepared by the Economics and Investment Office of the International Energy Agency (IEA). It was designed and directed by Laszlo Varro, Chief Economist of the IEA. The lead authors were Simon Bennett (investment in energy end use and efficiency), Alessandro Blasi (investment in oil, gas and coal) and Michael Waldron (investment in electricity and renewables). Principal contributors to the report were Alfredo Del Canto, Tomi Motoi and Yoko Nobuoka. Other key contributors were Ingrid Barnsley, Carlos Fernandez Alvarez, Thomas Giehm, Christopher Gully, Kristine Petrosyan, Andrew Wilson and Yang Lei. Trevor Morgan edited the manuscript and Janet Pape provided essential support. The report is indebted to the high standard of investment data production across all parts of the IEA. In particular, the work of the Energy Supply Outlook Division (Tim Gould, Chris Besson, Ian Cronshaw, Christophe McGlade and Pawel Olejarnik), the Energy Efficiency Division (Brian Motherway, Tyler Bryant, Brian Dean and Samuel Thomas), the Energy Demand Outlook Division (Laura Cozzi, Marco Baroni, Timur Gül, Brent Wanner, David Wilkinson and Shuwei Zhang) and the Renewable Energy Division (Paolo Frankl, Yasmina Abdelilah, Heymi Bahar, Pharoah Le Feuvre and Megan Mercer) was invaluable to the analysis. We would like to thank the following organisations that gave their time to answer questions and respond to cost surveys covering different parts of the energy value chain: Banpu, Barclays, BP, Chevron, Citigroup, Enel, Eni, ExxonMobil, European Solar Thermal Electricity Association (ESTELA), GE, Goldman Sachs, Iberdrola, J-Power, Morgan Stanley, Navigant, OMV, Petrofac, Philips, Repsol, Schlumberger, Shell, Statoil, Total and WindEurope. The report benefited from valuable inputs, comments and feedback from other experts within the IEA, including Manuel Baritaud, Kamel Ben Naceur, David Benazeraf, Mariano Berkenwald, Pierpaolo Cazzola, Loïc Coent, Karolina Daszkiewicz, John Dulac, Marc-Antoine Eyl-Mazzega, Duarte Figueira, Nathan Frisbee, Jean-François Gagné, Costanza Jacazio, Joerg Husar, Alexander Keeley, Simon Keeling, Florian Kitt, Markus Klingbeil, Vladimir Kubecek, Sonja Lekovic, Raimund Malischek, Duncan Millard, David Morgado, Noor Miza Muhamad Razali, Luis Munuera, Roberta Quadrelli, Uwe Remme, Keisuke Sadamori, Jesse Scott, Paul Simons, Tristan Stanley, Johannes Trueby, Kevin Tu, Aad Van Bohemen, Matthew Wittenstein. Thanks also go to Muriel Custodio, Astrid Dumond, Rebecca Gaghen, Jad Mouawad, Bertrand Sadin, Robert Stone and Therese Walsh of the IEA Communication and Information Office for their help in producing the report. Acknowledgements 5 Many experts from outside of the IEA provided input, commented on the underlying analytical work and reviewed the report. Their comments and suggestions were of great value. They include: Géraldine Ang Organisation for Economic Co-operation and Development (OECD) Marco Annunziata GE Alexander Antonyuk European Investment Bank (EIB) Jean-Paul Bouttes EDF Barbara Buchner Climate Policy Initiative (CPI) Prach Chongkittisakul Banpu Carlo Crea Terna Giles Dickson WindEurope Szilvia Doczi Arup Jonathan Elkind Department of Energy, Government of the United States Paolo Falcioni European Committee of Domestic Equipment Manufacturers Mark Finley BP Nikki Fisher AngloAmerican Benjamin Freas Navigant Jaejoo Ha Nuclear Energy Agency Michael Hackethal Federal Ministry for Economic Affairs and Energy, German Government Tom Howes European Commission, Directorate-General for Energy Anil Jain National Institution for Transforming India (NITI) Aayog, Government of India Christopher Kaminker OECD Ken Koyama Institute of Energy Economics, Japan (IEEJ) Alex Körner Consultant Jochen Kreusel ABB Ross Lambie Department of Industry, Innovation and Science, Australian Government 6 Acknowledgements Richard Lavergne Ministère de l'Environnement, de l'énergie et de la mer, Government of France Benoit Lebot International Partnership for Energy Efficiency Cooperation (IPEEC) Mark Lewis Barclays Michael de la Mothe Natural Resources Canada, Government of Canada Steve Nadel American Council for an Energy-Efficient Economy (ACEEE) Gilles de Noblet Schlumberger Nick Norton Foreign and Commonwealth Office, UK Government Hokuto Otsuka OECD Gregor Pett E.ON Andrew Prag OECD Geoffrey Rothwell OECD Nuclear Energy Agency Felix Rüsch OMV Pierre Sigonney Total Filipe Silva OECD Manpreet Singh KPMG India Konstantin Staschus ENTSO-E James Steel Department for Business, Energy and Industrial Strategy, UK Government Kuniharu Takemata J-Power Cecilia Tam Asia Pacific Energy Research Centre (APERC) Michael Taylor