Free download includes information on the supply, transformation and consumption of all major energy sources.

The International Energy Agency’s latest annual publication of energy data – Key World Energy Statistics 2011 – can now be downloaded free of charge on iPhone and iPad. The annual summary, which was first produced in 1997, contains timely, clearly-presented data on everything from the annual Canadian production of coal to the electricity consumption in Thailand, the price of diesel oil in Spain and thousands of other useful energy facts.

Click here to download.

Read press release…

'Those seeking a more tranquil 2012 oil market may be disappointed' – IEA Deputy Executive Director

The relative stability in oil prices may be fragile, the IEA’s Deputy Executive Director has warned, with much depending on whether economic malaise or supply-side problems predominate in 2012.

Ambassador Richard Jones was addressing the US Senate Committee of Energy and Natural Resources in Washington DC. He briefed the Committee on oil market developments in 2011 and the IEA’s outlook for the oil market in the year ahead, stressing that those hoping for a calm oil market in 2012 may be disappointed.

Impact of high prices on economy

Since last spring, the high level of USD100-120 per barrel of oil has become relatively established, with prices oscillating within that range. Before this period, prices had risen from a low point of below USD40 per barrel in February 2009 to a high of around USD120.

“Oil prices at elevated levels pose significant problems for import-dependent countries,” Ambassador Jones said in his testimony on 31 January.

“In this regard, [the IEA] estimates that the proportion of total world GDP dedicated to oil expenditures was back up above 5% for 2011, as it was during the economic slump of 2008 and during several previous periods of severe economic downturn. High oil prices may or may not have caused these episodes of economic difficulty, but they certainly did not help.”

Demand growth in 2012

Looking ahead to 2012, Ambassador Jones explained that the IEA’s ‘base case’ view envisages global oil demand growth of just over 1 million barrels per day (mb/d).

The IEA believes that non-OPEC oil supply and OPEC gas liquids (which are not subject to OPEC’s production management system) will rebound by as much as 1.6 mb/d combined, leaving OPEC producers an opportunity to trim their collective crude supply by around half a million barrels per day to 30 mb/d, while still maintaining inventory levels to roughly where they are now.

At the same time, the Deputy Executive Director stressed that there is uncertainty surrounding the ability of non-OPEC supply to rebound “from the awful year it suffered in 2011.”

Ambassador Jones noted, however, that the IEA and many of its analytical peers believe non-OPEC supply can rebound, continuing the trend of reinvigorated growth that was seen in 2009 and 2010.

What about Iran?

The recently announced US sanctions on entities having financial dealing with Iran, and the upcoming EU embargo on oil imports from Iran, will clearly affect the mix of crude oil supply available on a regional basis, Ambassador Jones acknowledged.

Iran exports around 2.5 mb/d of crude oil, with 65% of this going to Asia, and some 30% into Europe, he explained. A significant portion of the 1.3 mb/d of Iranian crude oil imported by IEA member countries is likely to be affected by these measures, but the full impact of the sanctions and embargo have yet to be fully assessed.

“Ultimately, [the IEA] thinks refiners denied the ability to import Iranian oil will most likely find the extra barrels they need, albeit they may need to pay higher prices than might otherwise have been the case,” he said.

In addition, Ambassador Jones observed that there is a widespread expectation that Iran will try to retain or increase sales to non-OECD buyers, potentially making extra spot sales into Asia at discounted prices.

The Deputy Executive Director added that of greatest concern for the oil market is the threat by Iran to impede traffic through the Strait of Hormuz (17 mb/d, equivalent to some 20% of global oil supplies) if an embargo is applied, as well as its threat to retaliate against neighbouring producers if they try to boost exports.

“[However,] to a degree, such threats have already been priced into the market, while the likelihood of a prolonged stoppage for Hormuz transits is seen as being fairly low,” he added.

IEA stands ready

Ambassador Jones concluded that at present there is no physical oil supply disruption underway, but added that the IEA remains vigilant and ready to act if a major disruption occurs.

“Emergency oil stocks, as their name suggests, are for use only when the market’s ability to efficiently reallocate supplies in a crisis is compromised,” he said.

“Ongoing investment in new productive capacity, especially in diverse areas likely to be less susceptible to geopolitical risks, and a progressive improvement in energy and oil use efficiency provide longer term routes to greater supply security. But, if the mere availability of IEA strategic stocks helps calm otherwise jittery market nerves in 2012, so much the better.”

Photo: ©GraphicObsession

Meeting organised by International Energy Agency, International Energy Forum and Organisation of Petroleum Exporting Countries

The second Symposium on Energy Outlooks took place in Riyadh, Saudi Arabia, on 23-24 January, 2012.

Click here to read the joint press release from the Symposium.

Global information resource is set up by IEA and World Resources Institute

The International Energy Agency has helped create a database that will act as a one-stop-shop for researchers, planners, and policymakers to source information and data on Bus Rapid Transport (BRT) systems, such as the costs of such systems in different countries, which until now has not been possible.

This database, which will be launched in February 2012, is the first globally encompassing effort to map out BRT Systems around the world and will include a web portal, which is publicly available for anyone wishing to access information about BRT data. 

BRT systems – which were originally popularised in Curitiba, Brazil, and Bogotá, Colombia – are networks of low-cost surface metro systems, featuring large, fast buses that are highly efficient, popular with passengers, and much more advanced than regular bus systems. They are now being considered and actively adopted by hundreds of cities around the world.

These systems incorporate a number of technical innovations which aim to slash carbon dioxide emissions by enticing people away from their cars to a cost-effective and attractive alternative, and by making the bus routes more efficient, thereby saving energy.

Their numerous features include introducing dedicated lanes for buses in urban areas and creating bus stations with pre-pay systems that allow high volume, rapid boarding and alighting of buses, similar to metro systems.

For this project the IEA teamed up with Embarq, a division of the World Resources Institute, a think tank based in Washington D.C.

“The culmination of our joint efforts will result in the most comprehensive and robust database for a transit system which promises carbon reduction and increased mobility at a cost-effective rate,” said Tali Trigg, Energy Analyst, within the Energy Technology Policy Division at the IEA.

In addition to this new database, a new Standard of assessing the quality of BRT systems is also being developed.

The official Standard, which the IEA welcomes, is being developed by the Institute for Transportation & Development Policy (ITDP), a leading non governmental organisation working in the area of sustainable transport in the developing world. It allows projects that have been branded as BRT to be scored as gold, silver, or bronze. ITDP and a technical committee of international BRT experts will take on the roll of assessing cities to decide on their respective scores. The IEA has assisted in reviewing the technical details of this Standard.

Fuel subsidies are not only enormously wasteful but they also greatly distort the efficient distribution of resources – Oil Market Report

Demand for oil products in Nigeria is likely to fall in the first quarter of 2012 following the removal of a gasoline subsidy, according to the International Energy Agency’s latest Oil Market Report (OMR).

The decision by the government to instigate a subsidy removal programme was made after it revealed that the subsidy cost the economy an unsustainable $8 billion in 2011. The subsidy cost more than double the estimate for 2010. With two-thirds of the population living on $1.25 a day, it was difficult for the government to continue to support a subsidy that cost nearly $50 per person last year.

The OMR noted that this was a bold decision, adding that “fuel subsidies are not only enormously wasteful but they also greatly distort the efficient distribution of resources, whilst often fuelling corruption.”

However, when the subsidy was removed at the start of this year, gasoline prices more than doubled, reaching $0.90/litre, which sparked political unrest. Workers went on a national strike, disrupting the Nigerian economy.

The government quelled the unrest by agreeing to partially scale back on its subsidy removal programme. A gasoline price of $0.60/litre has now been set. Although this is still 50% higher than pre-removal price levels, it is one-third down on the initial price hike.

“In hindsight, a more gradual process might have been advisable,” the OMR stated. “Nor do the measures seem to have been accompanied by much in the way of public consultation or targeted assistance for the poorest members of society.”
  
“Nigeria is on the watch list for 2012, with oil product demand likely to fall, at least in [the first quarter of 2012],” the OMR concluded. “Persistent industrial disputes, of the kind seen in January, could further reduce forecasts, not just for oil demand but also for economic growth in general.”

The IEA’s World Energy Outlook 2011 estimates subsidies to fossil fuels amounted to $409 billion in 2010, with oil products representing almost half of the total. Nigeria has been among the world’s biggest subsidisers of oil products in recent years.

What is the Oil Market Report?
The Oil Market Report (OMR), a monthly IEA publication which provides a view of the state of the international oil market and projections for oil supply and demand 12-18 months ahead.

What is a subsidy?
Any government action directed primarily at the energy sector that lowers the cost of energy production, raises the price received by energy producers, or lowers the price paid by energy consumers.

New IEA report offers detailed guidance for governments on how to partner with private sector to finance energy efficiency measures

Improvements in energy efficiency can achieve a whole array of economic, societal and environmental benefits, often at low cost. In many cases it seems unexplainable that consumers, business and government authorities do not exploit the full potential of energy efficiency, yet there are a range of market and human behavioural failures that stop us from doing so.

Improving energy efficiency often requires an initial upfront cost, for example, for a more advanced or new piece of technology, a change in process, or the refurbishment of a building, that is paid back later through reduced energy bills. Even though the rate of return in investment in energy efficiency can be high, lack of finance can still be a key barrier to investment in energy efficiency.

Because of the finance challenges often associated with energy efficiency projects, the IEA encourages governments to support private investment in energy efficiency measures. The IEA recommends that governments facilitate private investment in energy efficiency through collaboration with private financial institutions to develop public-private partnerships (PPPs) and other frameworks that facilitate energy efficiency financing. Now, in a new report on public-private approaches to energy efficiency finance, the IEA provides guidance on the essential steps and milestones in implementing PPPs in financing energy efficiency measures.

The latest IEA Policy Pathway report, “Joint public-private approaches for energy efficiency finance”, aims to support policy makers at all levels of government and other relevant stakeholders who seek practical ways to develop, support, monitor or modify energy efficiency policies in their home country and abroad.

PPPs are mechanisms that use public policies, regulations and/or funding to leverage private-sector financing for energy efficiency projects. The active participation of commercial banks and financial institutions is needed for the long-term growth and development of the market for delivering energy efficiency financing and implementation services. PPP mechanisms can be used to obtain such leveraging of commercial financing and to reduce the cost of energy efficiency finance to the public purse.

This Policy Pathway describes how to implement three particular kinds of PPPs - Dedicated Credit Lines where credit lines are established by a public entity (such as a government agency and/or donor organisation) to enable financing of energy efficiency projects by a private-sector organisation (bank or financial institution); Risk-Sharing Facilities involving a partial risk or partial credit guarantee programme established by a public entity (such as a government agency and/or donor organisation) to reduce the risk of energy efficiency project financing to the private sector (by sharing the risk through a guarantee mechanism), thereby enabling increased private sector lending to energy efficiency projects; and Energy Saving Performance Contracts (ESPCs) which are public-sector initiatives, in the form of legislation or regulation, to facilitate the implementation by energy service companies (ESCOs) of performance-based contracts using private-sector financing.

This publication proposes a policy pathway that supports the development and implementation of PPPs comprising ten critical steps in the following four stages.

• Plan: policy makers begin the PPP process by identifying the market segment where energy efficiency needs to be improved, choosing among the different public-sector intervention approaches available, and structuring an agreement between the public and private partners.
• Implement: the public partner defines the implementation steps and manage the implementation process, while the private-sector partner takes the lead in implementation of the PPP mechanism, making adjustments as necessary to meet objectives and respond to market changes.
• Monitor: the public partner manages the contract to ensure delivery of services (including authorising payments and maintaining records) and assesses performance relative to the standards defined in the PPP agreement.
• Evaluate: an independent third-party organisation evaluates the PPP design and implementation to assess its success in meeting objectives, factors affecting performance, and key lessons learned.

Countries around the world have accumulated considerable experience with PPPs for energy efficiency financing, which should be useful for other policymakers setting up such programmes. Case studies included in the Policy Pathway report (the Thailand Energy Efficiency Revolving Fund, the Commercialising Energy Efficiency Finance programme across six countries in central and eastern Europe, and the US Federal Energy Management Programme) should provide insights along the policy pathway for others. Nonetheless, to be effective in addressing the particular financing barriers to energy efficiency in a given country, PPPs must be adapted and customised to local legislative, regulatory, institutional, financial and energy services market conditions.

The IEA is grateful for the support of the European Bank for Reconstruction and Development (EBRD) Shareholder Special Fund for this work.

The two agencies will develop a Global Renewable Energy Policies and Measures Database, as well as increase co-operation on technology and innovation

The International Energy Agency (IEA) and the International Renewable Energy Agency (IRENA) signed a partnership agreement today which will strengthen co-operation between the two organisations. Although the agencies have collaborated since IRENA’s inception in 2009 – including developing a joint approach on renewable energy statistics – this agreement will launch a number of new initiatives, such as a joint database of renewable energy policies.

The IEA’s Executive Director, Maria van der Hoeven, emphasised the importance of close co-operation. “The Joint Database will eventually allow the coverage of renewable energy policies in 150 countries, which I consider a crucial milestone to foster best policy practices – and consequently cost-effective large-scale deployment of renewables,” she said.

IRENA’s Director-General, Adnan Z. Amin, added: “IRENA and the IEA are natural partners in the global quest to increase the deployment of renewable energy. This agreement will allow us to maximise output by drawing on each others’ respective strengths and complementary areas, while avoiding duplication of efforts.”

The proposed new areas of work are outlined in a Letter of Intent, which was signed by the Executive Director of the IEA and the Director General of IRENA, during the IRENA Assembly in Abu Dhabi on 14 January 2012. IRENA, which was established in January 2009, aims at acting as a global voice for renewable energy, promoting its widespread and increased adoption.

The existing IEA database will now be known as the IEA/IRENA Global Renewable Energy Policies and Measures Database and will be improved with additional datasets from IRENA Members and Signatory countries. Both parties will collect and verify information for the database, which will open to free public access and be updated at least twice a year.

Other points covered in the Letter of Intent include the regular exchange of information, the organisation of joint conferences and workshops and reciprocal participation in technical committee meetings.

There will also be increased collaboration between the two agencies at the Secretariat level, and in energy technology networks, including the IEA’s Multilateral Technology Initiatives. (These initiatives, also known as Implementing Agreements, are well-established programmes for pre-commercial international technology co-operation between countries, and many of which focus on renewable energy technologies).

100 participants from up to 50 countries are expected to attend the 2012 Energy Training Week

Following their success last year, the International Energy Agency is organising more training courses for government officials and private sector experts from developing countries and emerging economies. Interested individuals who work in the energy field are welcome to apply (see below).

The Energy Training Week, which will take place from 2 to 6 April 2012 at the IEA’s headquarters in Paris, will focus on the latest trends and developments in a range of energy sectors, including oil, gas and renewables.

“This training week offers the opportunity for officials from all over the world who may not have other opportunities to meet, to network and share expertise on a broad range of energy-related issues,” said Assen Gasharov, Head of the IEA’s Training and Capacity Building programme.

IEA experts and guest lecturers will deliver the training through a mixture of lectures, practical exercises – such as simulating an oil supply disruption – and field visits to energy efficient buildings and renewable energy installations.

Seven courses will be offered – of which five are advanced and two introductory – which focus on energy security, markets, sustainability, technology and analysis. All of these courses will be in English, the working language of the IEA. No interpretation in any other language will be provided.

Details on the training courses>

Participants can take one advanced five-day course and (optional) one preparatory course. While attending these courses is free of charge, participants must cover their own travel and accommodation costs.

The two preparatory courses, which each last two days and take place the week before the advanced courses, are:

• Energy Security (introduction to oil and gas markets) and
• Sustainable Energy (introduction to energy efficiency and renewables)

• Energy Essentials for Decision Makers: A mixture of key energy topics are discussed for the benefit of experienced managers and policy-makers with broader responsibilities and interests. The course will offer a strong combination of the latest energy developments internationally and some innovative practical tools for designing policy interventions and planning technology deployment. Particular attention will be given to sustainable and low-carbon energy options, such as energy efficiency and renewables
• Energy Markets and Security : A range of important issues regarding oil and gas market trends and prices, supply disruption and response, and market regulation will be explored. Particular attention will be given to natural gas as a fuel which contributes to the security and flexibility of national and international energy systems. The course has a very strong practical experience approach, and includes a simulation exercise of an oil supply disruption and a site visit to oil and gas facilities
• Energy Efficiency Policy and Measures: The programme will cover energy efficiency best practice and interventions and discuss some options for specific sectors, including buildings, industry and transport. A range of case studies from around the world will be presented, and the course also offers concrete policy development tools, group problem-solving exercises and site visits
• Renewable and Low-Carbon Energy Technology: This theme will explore the key principles of policy formulation for renewable energy planning and low-carbon technology deployment. It uses the IEA’s unique expertise in developing energy technology roadmaps – a methodology that encompasses the policy objectives, stakeholder engagement, and financial incentives needed to support a particular technology
• Energy Analysis and Modelling: A close look is given to a range of practical IEA energy analysis applications – from developing energy efficiency indicators to modelling a national power generation portfolio. Participants are introduced to the fundamental principles of energy analysis and modelling and then receive hands-on training on using tools, such as the Mobility Modelling (MOMO) transport model. This is a global transport spreadsheet model that has been developed since 2003. It contains historical data and projections to 2050 and includes all modes of transport and most vehicle types, including two and three-wheelers, passenger cars, light trucks, medium and heavy freight trucks, buses and non-road modes (rail, air and shipping)

The IEA constantly monitors developments in global oil markets and the current situation of heightened tensions surrounding the Middle East Gulf is no exception. As always, we remain prepared to respond to any significant oil supply disruption, but as no specific supply disruption is underway, we are not actively considering any action at the present time.

More than 250 million tonnes of CO2 emissions can be saved by 2050 by embracing wind power, smart grids, and electric vehicles

Three roadmaps, which outline paths to a sustainable energy future for Ireland, a member of the International Energy Agency (IEA), were unveiled by the Sustainable Energy Authority of Ireland (SEAI) on 15 December.

The roadmaps – which focus on wind power, smart grids and electric vehicles – were each constructed in line with methodologies developed by the IEA and Deputy Executive Director Richard H Jones was on hand to congratulate the Irish authorities on their successful adaptation of the IEA work to their national circumstances.

“The Roadmaps are a further important mapping of the long-term opportunities in energy and the road to a decarbonised energy system for Ireland,” said Professor J. Owen Lewis, Chief Executive of SEAI. “They show a great many benefits, including reduced energy imports leading to increased security of supply, increased use of renewables leading to lower CO2 emissions and significant employment and economic opportunities.”

The roadmaps concluded:

• The use of smart grids – networks that monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end users – will lead to an accumulated reduction in energy-related CO2 emissions in Ireland of 250 million tonnes by 2050;
• The potential economic value of electricity generated by wind could reach almost EUR 15 billion by 2050;
• By 2050, transport fossil fuel imports could be reduced by up to 50% compared with 2011 - equating to a reduction of 800,000 tonnes of oil per annum;
• The Electric Vehicles analysis, which focused on the passenger car fleet only, found that carbon dioxide reduction of 4 million tonnes per annum for the passenger car fleet is possible by 2050; and
• Onshore and Offshore wind represent a significant carbon abatement opportunity; wind could abate between 400 and 450 megatonnes of CO2 by 2050.

In response to requests from Ministers from G8 countries, the IEA has led the creation of a series of international energy technology roadmaps with almost 20 either published or currently under development. These low-carbon energy technology roadmaps cover the most important technologies, from biofuels to energy efficient buildings. But it lies in the hands of national governments to implement selected roadmaps to really make a difference.

Click here to read a press release from the Sustainable Energy Authority of Ireland

OPEC crude production capacity set to reach 38.1 million barrels per day by 2016

Crude oil production capacity in Iraq is set to increase by 1.87 million barrels per day (mb/d) between 2010 and 2016, according to the International Energy Agency’s latest Oil Market Report (OMR). This will increase production in the country to 4.36 mb/d by 2016.

This revised forecast means that Iraq is expected to account for 80% of the increase in OPEC’s crude oil production capacity in the six-year period. Overall production capacity in OPEC is now forecast to increase by 2.33 mb/d, to 38.1 mb/d by 2016. (That is 37.5% of the global liquids production capacity in 2016).

The latest outlook for Iraq, which is 335 thousand barrels per day (kb/d) higher than the OMR’s report in June, is mainly due to steady progress at the country’s 12 joint venture projects with energy companies.

The report – a monthly publication which provides a view of the state of the international oil market and projections for oil supply and demand – however, warns of potential risks to this production increase in Iraq, notably the withdrawal of US troops and fears of escalating instability as insurgency bombing increases.

“International Oil Companies also report that continued bureaucratic, logistical and operational constraints are posing significant challenges and delays to project work, which we have already largely built into our forecast,” the OMR stated.

Aside from Iraq, the only other OPEC countries which are set to contribute significant growth in the next few years are the United Arab Emirates (UAE), Angola and Nigeria, which combined will add a further net 1.3 mb/d by 2016:

• Total oil production capacity in UAE is now forecast to rise by 710 kb/d, to 3.41 mb/d by 2016;
• Angola is forecast to increase capacity by 360 kb/d to 2.4 mb/d by 2016; and
• Production capacity in Nigeria is expected to increase by a net 240 kb/d to 2.93 mb/d by 2016.

IEA report sees no let-up in world’s appetite for coal over next 5 years Medium-Term Coal Market Report 2011 also addresses global implications of Chinese coal demand

read press release…

The pace of recovery in Libyan oil production was among the topics discussed

The International Energy Agency’s Executive Director, Maria van der Hoeven, met with US Secretary of State, Hilary Clinton, on 28 November at the US Department of State.

They discussed the many uncertainties affecting energy markets in the world today, including the pace of recovery in Libyan oil production and the potential for continuing instability in the critical Middle East North Africa region.

The IEA’s efforts to reach out to non-member countries in order to ensure energy security, stable markets, and the transition to cleaner sources of energy were welcomed by Secretary Clinton, who congratulated Ms van der Hoeven on her recent appointment as Executive Director.

US State Department Special Envoy and Coordinator for International Energy Affairs Carlos Pascual and IEA Deputy Executive Director Richard Jones also participated in the meeting.

Photo: © U.S. Department of State photo by Michael Gross.

read press release…
Video of IEA press conference at COP 17
IEA events at COP 17
COP 17 side events organised by the IEA and the South African Department of Energy

Buying a diesel car instead of its gasoline equivalent is one way to improve fuel economy

Faster rates of improvement will be needed in order to meet the goal of slashing greenhouse gas emissions from new cars by 50% by 2030 when compared with 2005 levels, according to new analysis by the International Energy Agency (IEA).

A report launched today by the IEA at the United National Climate Change Conference in Durban, South Africa, shows that while the fuel economy of cars in the EU and 21 other sampled countries did improve between 2005 and 2008, not enough progress is being made to achieve this ambitious target. The countries in the study account for about 90% of global new car sales.

The results show a 1.7% annual improvement over the three-year period, which is well below the required 2.7% improvement per year that is needed from 2005 to 2030 to halve vehicle CO2 emissions.

This target was set by (and the report sponsored by) the Global Fuel Economy Initiative, a group of four organisations working together to promote greater vehicle fuel efficiency. The GFEI partnership is made up of the IEA, the United Nations Environment Programme, the International Transport Forum, and the Fédération Internationale de l’Automobile (FIA) Foundation.

The target of reducing vehicle emissions by half is global, and not intended to be applied at a country-by-country level. It is expected that some countries will improve by more than 50% and others less. This reflects different starting points, market and cultural situations.

The research, undertaken by the IEA in partnership with the GFEI and with a grant from the FIA Foundation, shows that sampled non-OECD countries had a lower average fuel consumption than sampled OECD countries in 2005. In 2008, however, OECD countries became more efficient than non-OECD countries on average.

The global improvement, while shy of the GFEI target, appears to be mainly due to progress made in OECD countries, where average fuel consumption rates decreased by 2.1% per year between 2005 and 2008.

Due to the big increase in passenger cars sales in non-OECD countries, in years to come, average fuel economy of vehicles sold in these countries will substantially impact the worldwide average. The GFEI is intensively working to show emerging and developing economies the benefits of a fuel efficient vehicle fleet.

The new report highlights key areas of focus which will help countries collectively meet the 50% target in under two decades time.

The report flags three main drivers which will help countries collectively meet the 50% target in under two decades time:

• Better technologies, such as turbocharged direct injection gasoline engines or start/stop starters
• Buying a diesel car instead of its gasoline equivalent, because of the better efficiency of the diesel engine
• Buying small vehicles, which are more fuel efficient than big vehicles

A high-level workshop organised by the International Energy Agency, the International Energy Forum, and the Organisation of the Petroleum Exporting Countries focused on the interactions between physical and financial energy markets. Participants exchanged views on oil price formation, and the progress and potential impact of proposed market regulation.

The event, which took place in Vienna on 29 November, brought together experts from industry, academia, governments, price reporting agencies, and the financial and regulatory sectors.

Read the joint statement released by the three Secretariats

In 90 minutes, enough sunlight strikes the earth to provide the entire planet's energy needs for one year

Solar Energy Perspectives, a new book released today by the International Energy Agency, provides relevant information, accurate data and sound analyses on solar energy technologies, market trends, and integration issues. It also considers how policy makers can best favour the deployment of solar energy while furthering cost reductions.

The publication builds upon Energy Technology Perspectives – a biennial IEA publication which outlines possible pathways to a more sustainable and secure energy system – in considering end-use sectors and the ever-growing role of electricity. It also follows on from many IEA Technology Roadmaps in elaborating an integrated approach to various solar energy technologies. It shows how best to use, combine and successfully promote the major categories of solar energy: solar heating and cooling, photovoltaic and solar thermal electricity, as well as solar fuels, and how they could combine to respond to our energy needs.

“In 90 minutes, enough sunlight strikes the earth to provide the entire planet's energy needs for one year,” emphasises Cédric Philibert, the report’s author and a senior policy analyst at the IEA. “While solar energy resources are abundant, their use currently represents only a tiny fraction of the world’s current energy mix. But this is changing rapidly and is being driven by action to improve energy diversification and security, mitigate climate change and provide energy access.”

Yet many questions remain on the costs and benefits as well as who will bear or reap them. The rapid evolution of these technologies makes policy answers to those questions unusually difficult. Concerns about costs have also sometimes led to abrupt policy revisions. Policies may lapse or lose momentum just a few years before they would have succeeded.

Solar Energy Perspectives looks at which solar technologies are close to competitiveness, in which circumstances and for which uses. It also reviews the different types of policy support they require and for how long and investigates ways to make them more effective and cost-effective.

Up to now, only a limited number of countries have been supporting most of the effort to drive solar energy technologies to competitiveness. Comprehensive and fine-tuned policies supporting a large portfolio of solar energy technologies could be extended to most sunny regions of the world, where most of the growth of population and economy is taking place, and where seven out of nine billion people will live in the second half of this century. Under specific circumstances, solar energy could well become a competitive energy source in many applications within the next twenty years.

This publication also depicts a world in which solar energy reaches its very fullest potential by the second part of this century. A number of assumptions are made to see what might be possible in terms of solar deployment, while keeping affordability in sight.

Under these assumptions, solar energy has immense potential and could emerge as a major source of energy, in particular if energy-related carbon dioxide emissions must be reduced to quite low levels and if other low-carbon technology options cannot deliver on large scale. While this outcome is hypothetical, it does suggest that current efforts are warranted to enrich the portfolio of clean and sustainable energy options for the future.

“Integrating all solar technologies in a system-oriented policy approach will unlock the potential of solar energy within the broader set of low-carbon technologies needed for a future sustainable and more secure global energy mix”, concludes Paolo Frankl, Head of the IEA’s Renewable Energy Division.

Click here to read a presentation on Solar Energy Perspectives.

Order a copy of Solar Energy Perspectives.

As the energy sector is responsible for the majority of mankind’s carbon dioxide (CO2) emissions, reforming it is critical to solving the climate change dilemma

The challenges of providing reliable, affordable and sustainable energy sources face energy producers and consumers alike. A new report from the International Energy Agency (IEA) and Organisation for Economic Co-operation and Development (OECD) highlights how they can be addressed successfully using green growth policies.

Such policies, the report argues, will spur a large-scale transformation of the energy sector and could reduce worldwide energy-related emissions of CO2 by half in 2050, using a combination of existing and new technologies.

The key policies that are required to transform the energy sector include:

• Eliminating fossil fuel subsidies
• Putting a price on emissions of CO2 and other greenhouse gases, such as methane and nitrous oxide
• Making sure energy market rules and regulations don’t inadvertently lock us into carbon-based technologies but encourage the use of appropriate new technologies
• Radically improving energy efficiency and
• Fostering innovation and green technology policy

Supplying the world’s energy must be done in a sustainable way – IEA Executive Director, during a visit to Saudi Arabia

As demand for energy shifts in the coming years – with notable increasing appetite expected from China, India and the Middle East – it is essential to ensure that this change does not risk global energy insecurity, the International Energy Agency’s Executive Director, Maria Van der Hoeven, said.

In her keynote address to the King Abdullah Petroleum Studies and Research Center (KAPSARC) 2011 Energy Dialogue in Riyadh, Saudi Arabia on 22 November, she stressed the need for more energy to be supplied in a sustainable way. Ms Van der Hoeven noted the emergence of more institutions responsible for energy technology and energy policy.

“This has important implications for us – the evolution of international energy governance. [The IEA is] determined to embrace these changes and to expand our international collaboration so that we can together tackle the global energy challenges that we face,” she said at the conference, the theme of which was ‘Partnering for a Sustainable Future.’

“The key will be extensive engagement, with those institutions whose specific expertise can be leveraged to contribute to global solutions. And also of course, with those countries whose importance and global weight is changing the energy landscape.”

While at the conference Mrs van der Hoeven discussed with the host, HE Ali Naimi, Minister of Petroleum, the scope for future cooperation between the IEA and Saudi Arabia, and with KAPSARC in particular, with special attention to the area of energy efficiency. Mrs van der Hoeven also visited the Ministry of Finance for a meeting with HE Ibrahim al-Assaf.

To underscore the importance of discussion between producers and consumers, Ms Van der Hoeven also spoke at the International Energy Forum – an organisation created to promote dialogue between producers and consumers – in Riyadh.

Click here to read a press release, which focuses on the IEA Executive Director’s speech at the IEF headquarters on 21 November.