Energy Policies of IEA Countries the Czech Republic

Energy Policies of IEA Countries the Czech Republic

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 Energy Policies of IEA Countries The Czech Republic 2010 Review Energy Policies of IEA Countries The Czech Republic The Czech Republic, rich in coal resources, is the third-largest electricity exporter in the European Union. The energy sector plays an important role for the country’s economy and for the regional energy security. Since the last IEA in-depth review in 2005, the Czech Republic has strengthened its energy policy, further liberalised its electricity and gas markets and made laudable efforts to enhance oil and gas security. The Czech government has a unique opportunity to develop coherent and balanced energy and climate strategies as it currently updates its policy documents. The draft State Energy Concept concentrates on energy security and on maintaining the Czech Republic as a net electricity exporter, through a diversified energy mix and a maximised use of indigenous resources, comprising coal, uranium and renewable energy. While the focus on energy security is praiseworthy, energy policy could be further improved. Energy policy should be better integrated with climate change considerations. At the same time, economic efficiency should be another key pillar of energy policy. To improve its energy security while reducing greenhouse gas emissions and enhancing economic development, the Czech Republic could take measures to: improve energy efficiency and broaden demand-side measures; focus on low-carbon technologies; integrate electricity and natural gas markets regionally; and optimise needed new infrastructure. This review analyses the energy challenges facing the Czech Republic and provides sectoral critiques and recommendations for further policy improvements. It is intended to help guide the country towards a more secure and sustainable energy future. -:HSTCQE=U^Y\UX: (61 2010 10 1P1) 978-92-64-09470-3 €75 Energy Policies of IEA Countries The Czech Republic 2010 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 effi ciency 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, 2010 Sweden International Energy Agency Switzerland 9 rue de la Fédération 75739 Paris Cedex 15, France Turkey United Kingdom Please note that this publication United States is subject to specifi c 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. Tableofcontents TABLEOFCONTENTS 1.EXECUTIVESUMMARYANDKEYRECOMMENDATIONS..........................................................................9 Executivesummary......................................................................................................................9 Keyrecommendations...............................................................................................................14 PARTI:POLICYANALYSIS 2.GENERALENERGYPOLICY......................................................................................................................17 Overview....................................................................................................................................17 Supplyanddemand...................................................................................................................18 Keyenergypolicydirections......................................................................................................22 Institutionsandgovernmentorganisations...............................................................................26 Marketreform...........................................................................................................................28 Energypricesandtaxes.............................................................................................................28 Energysecurity...........................................................................................................................29 Critique.......................................................................................................................................30 Recommendations.....................................................................................................................31 3.ENERGYANDTHEENVIRONMENT........................................................................................................33 Keydevelopmentsinenergyandenvironmentpolicy..............................................................33 Trendsingreenhousegasemissions.........................................................................................34 Greenhousegasemissionprojections.......................................................................................36 EUEmissionsTradingSchemeandNationalAllocationPlans...................................................37 Jointimplementationprojects...................................................................................................39 Localairpollution.......................................................................................................................39 Critique.......................................................................................................................................42 Recommendations.....................................................................................................................43 4.ENERGYEFFICIENCY...............................................................................................................................45 Energyintensity.........................................................................................................................45 Energyefficiencypolicies...........................................................................................................46 Implementation.........................................................................................................................50 Institutionalframework.............................................................................................................50 Critique.......................................................................................................................................51 Recommendations.....................................................................................................................52 3 Tableofcontents PARTII:SECTORANALYSIS 5.COAL......................................................................................................................................................57 Overview....................................................................................................................................57 Reservesandproduction...........................................................................................................58 Trade..........................................................................................................................................60 Demand......................................................................................................................................60 Coalfiredpowerplantemissions..............................................................................................6 0 Carboncaptureandstorage......................................................................................................63 Critique.......................................................................................................................................63 Recommendations.....................................................................................................................64 6.NATURALGAS........................................................................................................................................65 Overview....................................................................................................................................65

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