Energy policy
Encyclopedia
Energy policy is the manner in which a given entity (often governmental) has decided to address issues of energy development
including energy production, distribution
and consumption
. The attributes of energy policy may include legislation
, international treaties, incentives to investment, guidelines for energy conservation
, tax
ation and other public policy techniques.
Frequently the dominant issue of energy policy is the risk of supply-demand mismatch (see: energy crisis
). Current energy policies also address environmental issues (see: climate change
). Some governments state explicit energy policy, but, declared or not, each government practices some type of energy policy. Economic and energy modelling can be used by governmental or inter-governmental bodies as an advisory and analysis tool (see: economic model, POLES
).
. Influential entities, such as municipal
or regional governments and energy industries, will each exercise policy. Policy measures available to these entities are less
er in sovereignty
, but may be equally important to national measures. In fact, there are certain activities vital to energy policy which realistically cannot be administered at the national level, such as monitoring energy conservation
practices in the process of building construction, which is normally controlled by state-regional and municipal building code
s (although can appear basic federal legislation).
has legislated, set targets, and negotiated internationally in the area of energy policy for many years, and evolved out of the European Coal and Steel Community
, the concept of introducing a mandatory common European Union energy policy was only approved at the meeting of the European Council
on October 27, 2005 in London
. Following this the first policy proposals, Energy for a Changing World, were published by the European Commission
, on January 10, 2007.
has achieved success in (a) reducing energy intensity
(but still really high), (b) reducing energy poverty and (c) maintaining energy supply reliability to date. The United Kingdom has an ambitious goal to reduce carbon dioxide emissions for future years, but it is unclear whether the programs in place are sufficient to achieve this objective (the way to be so efficient as France is still hard). Regarding energy self sufficiency, the United Kingdom policy does not address this issue, other than to concede historic energy self sufficiency is currently ceasing to exist (due to the decline of the North Sea oil production). With regard to transport, the United Kingdom historically has a good policy record encouraging public transport
links with cities, despite encountering problems with high speed trains, which have the potential to reduce dramatically domestic and short-haul European flights. The policy does not, however, significantly encourage hybrid vehicle
use or ethanol fuel
use, options which represent viable short term means to moderate rising transport fuel consumption. Regarding renewable energy
, the United Kingdom has goals for wind
and tidal energy. The White Paper on Energy, 2007, set the target that 20% of the UK's energy must come from renewable sources by 2020.
was the largest energy provider in the world until the late 1980s. Russia
, one of the world's energy superpower
s, is rich in natural energy resources, the world’s leading net energy exporter, and a major supplier to the European Union
. The main document defining the energy policy of Russia
is the Energy Strategy, which initially set out policy for the period up to 2020, later was reviewd, amended and prolonged up to 2030. While Russia has also signed and ratified the Kyoto Protocol
.
is characterized by trades between four major drivers:
In recent years, these challenges have led to a major set of continuing reforms, restructuring and a focus on energy conservation
.
is characterized by 1) increasing energy consumption efficiency, 2) increasing domestic energy production, 3) increasing the private sector's role in the energy sector, 4) increasing the role of market mechanisms in setting energy prices. These policies have been consistent since the 1990s, despite various changes in governments. The pace and form of industry liberalization and privatization has been highly controversial.
power stations, and hydro electricity plants. The Australian Government has decided not to build nuclear power
, although it is one of the world's largest producers of uranium..
Energy development
Energy development is the effort to provide sufficient primary energy sources and secondary energy forms for supply, cost, impact on air pollution and water pollution, mitigation of climate change with renewable energy....
including energy production, distribution
Resource distribution
Resource distribution refers to the distribution of resources, including land, water, minerals, fuel and wealth in general among corresponding geographic entities .-Unequal resource distribution:...
and consumption
Consumption (economics)
Consumption is a common concept in economics, and gives rise to derived concepts such as consumer debt. Generally, consumption is defined in part by comparison to production. But the precise definition can vary because different schools of economists define production quite differently...
. The attributes of energy policy may include legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
, international treaties, incentives to investment, guidelines for energy conservation
Energy conservation
Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption from conventional energy sources...
, tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
ation and other public policy techniques.
Measures used to produce an energy policy
A national energy policy comprises a set of measures involving that country's laws, treaties and agency directives. The energy policy of a sovereign nation may include one or more of the following measures:- statement of national policy regarding energy planningEnergy planningEnergy planning has a number of different meanings. However, one common meaning of the term is the process of developing long-range policies to help guide the future of a local, national, regional or even the global energy system...
, energy generation, transmission and usage - legislationLegislationLegislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
on commercial energy activities (trading, transport, storage, etc.) - legislation affecting energy useEnergy useEnergy use or similar terms are discussed in the following articles:* Efficient energy use* World energy resources and consumption* energy use intensity...
, such as efficiency standards, emission standardEmission standardEmission standards are requirements that set specific limits to the amount of pollutants that can be released into the environment. Many emissions standards focus on regulating pollutants released by automobiles and other powered vehicles but they can also regulate emissions from industry, power...
s - instructions for state-owned energy sector assets and organizations
- active participation in, co-ordination of and incentives for mineral fuelFuelFuel is any material that stores energy that can later be extracted to perform mechanical work in a controlled manner. Most fuels used by humans undergo combustion, a redox reaction in which a combustible substance releases energy after it ignites and reacts with the oxygen in the air...
s exploration (see geological surveyGeological surveyThe term geological survey can be used to describe both the conduct of a survey for geological purposes and an institution holding geological information....
) and other energy-related research and developmentResearch and developmentThe phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of... - fiscal policiesFiscal policyIn economics and political science, fiscal policy is the use of government expenditure and revenue collection to influence the economy....
related to energy products and services (taxes, exemptions, subsidies ... - energy securityEnergy securityEnergy security is a term for an association between national security and the availability of natural resources for energy consumption. Access to cheap energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led...
and international policy measures such as:- international energy sector treaties and alliances,
- general international trade agreements,
- special relations with energy-rich countries, including military presence and/or domination.
Frequently the dominant issue of energy policy is the risk of supply-demand mismatch (see: energy crisis
Energy crisis
An energy crisis is any great bottleneck in the supply of energy resources to an economy. In popular literature though, it often refers to one of the energy sources used at a certain time and place, particularly those that supply national electricity grids or serve as fuel for vehicles...
). Current energy policies also address environmental issues (see: climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
). Some governments state explicit energy policy, but, declared or not, each government practices some type of energy policy. Economic and energy modelling can be used by governmental or inter-governmental bodies as an advisory and analysis tool (see: economic model, POLES
Prospective Outlook on Long-term Energy Systems
Prospective Outlook on Long-term Energy Systems is a world simulation model for the energy sector that runs on the Vensim software...
).
Factors within an energy policy
There are a number of elements that are naturally contained in a national energy policy, regardless of which of the above measures was used to arrive at the resultant policy. The chief elements intrinsic to an energy policy are:- What is the extent of energy self-sufficiency for this nation
- Where future energy sources will derive
- How future energy will be consumed (e.g. among sectors)
- What fraction of the population will be acceptable to endure energy povertyEnergy povertyEnergy Poverty is a term for a lack of access to electricity, heat, or other forms of Power. Often referring to the situation of peoples in the developing world, the term also implies any quality of life issues relating to this lack of access....
- What are the goals for future energy intensityEnergy intensity]Energy intensity is a measure of the energy efficiency of a nation's economy. It is calculated as units of energy per unit of GDP.* High energy intensities indicate a high price or cost of converting energy into GDP....
, ratio of energy consumed to GDP - What is the reliability standard for distribution reliability
- What environmental externalities are acceptable and are forecast
- What form of "portable energy" is forecast (e.g. sources of fuel for motor vehicles)
- How will energy efficient hardware (e.g. hybrid vehicles, household appliances) be encouraged
- How can the national policy drive province, state and municipal functions
- What specific mechanisms (e.g. taxes, incentives, manufacturing standards) are in place to implement the total policy
State, province or municipal energy policy
Even within a state it is proper to talk about energy policies in pluralPlural
In linguistics, plurality or [a] plural is a concept of quantity representing a value of more-than-one. Typically applied to nouns, a plural word or marker is used to distinguish a value other than the default quantity of a noun, which is typically one...
. Influential entities, such as municipal
Municipality
A municipality is essentially an urban administrative division having corporate status and usually powers of self-government. It can also be used to mean the governing body of a municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district...
or regional governments and energy industries, will each exercise policy. Policy measures available to these entities are less
Less
Less may refer to:* Less , a band from the San Francisco bay area* LESS , a dynamic stylesheet language.* less , a Unix utility used to view the contents of a text file one screen at a time...
er in sovereignty
Sovereignty
Sovereignty is the quality of having supreme, independent authority over a geographic area, such as a territory. It can be found in a power to rule and make law that rests on a political fact for which no purely legal explanation can be provided...
, but may be equally important to national measures. In fact, there are certain activities vital to energy policy which realistically cannot be administered at the national level, such as monitoring energy conservation
Energy conservation
Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption from conventional energy sources...
practices in the process of building construction, which is normally controlled by state-regional and municipal building code
Building code
A building code, or building control, is a set of rules that specify the minimum acceptable level of safety for constructed objects such as buildings and nonbuilding structures. The main purpose of building codes are to protect public health, safety and general welfare as they relate to the...
s (although can appear basic federal legislation).
European Union
Although the European UnionEuropean Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
has legislated, set targets, and negotiated internationally in the area of energy policy for many years, and evolved out of the European Coal and Steel Community
European Coal and Steel Community
The European Coal and Steel Community was a six-nation international organisation serving to unify Western Europe during the Cold War and create the foundation for the modern-day developments of the European Union...
, the concept of introducing a mandatory common European Union energy policy was only approved at the meeting of the European Council
European Council
The European Council is an institution of the European Union. It comprises the heads of state or government of the EU member states, along with the President of the European Commission and the President of the European Council, currently Herman Van Rompuy...
on October 27, 2005 in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
. Following this the first policy proposals, Energy for a Changing World, were published by the European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....
, on January 10, 2007.
United Kingdom
The energy policy of the United KingdomEnergy policy of the United Kingdom
The current energy policy of the United Kingdom is set out in the Energy White Paper of May 2007 and Low Carbon Transition Plan of July 2009, building on previous work including the 2003 Energy White Paper and the Energy Review Report in 2006...
has achieved success in (a) reducing energy intensity
Energy intensity
]Energy intensity is a measure of the energy efficiency of a nation's economy. It is calculated as units of energy per unit of GDP.* High energy intensities indicate a high price or cost of converting energy into GDP....
(but still really high), (b) reducing energy poverty and (c) maintaining energy supply reliability to date. The United Kingdom has an ambitious goal to reduce carbon dioxide emissions for future years, but it is unclear whether the programs in place are sufficient to achieve this objective (the way to be so efficient as France is still hard). Regarding energy self sufficiency, the United Kingdom policy does not address this issue, other than to concede historic energy self sufficiency is currently ceasing to exist (due to the decline of the North Sea oil production). With regard to transport, the United Kingdom historically has a good policy record encouraging public transport
Public transport
Public transport is a shared passenger transportation service which is available for use by the general public, as distinct from modes such as taxicab, car pooling or hired buses which are not shared by strangers without private arrangement.Public transport modes include buses, trolleybuses, trams...
links with cities, despite encountering problems with high speed trains, which have the potential to reduce dramatically domestic and short-haul European flights. The policy does not, however, significantly encourage hybrid vehicle
Hybrid vehicle
A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle. The term most commonly refers to hybrid electric vehicles , which combine an internal combustion engine and one or more electric motors.-Power:...
use or ethanol fuel
Ethanol fuel
Ethanol fuel is ethanol , the same type of alcohol found in alcoholic beverages. It is most often used as a motor fuel, mainly as a biofuel additive for gasoline. World ethanol production for transport fuel tripled between 2000 and 2007 from 17 billion to more than 52 billion litres...
use, options which represent viable short term means to moderate rising transport fuel consumption. Regarding renewable energy
Renewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
, the United Kingdom has goals for wind
Wind energy
Wind energy is the kinetic energy of air in motion; see also wind power.Total wind energy flowing through an imaginary area A during the time t is:E = ½ m v2 = ½ v 2...
and tidal energy. The White Paper on Energy, 2007, set the target that 20% of the UK's energy must come from renewable sources by 2020.
The Soviet Union and Russia
The Soviet UnionSoviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
was the largest energy provider in the world until the late 1980s. Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
, one of the world's energy superpower
Energy superpower
The term energy superpower does not have a clear definition. It has come to be used to refer to a nation that supplies large amounts of energy resources to a significant number of other states, and which therefore has the potential to influence world markets to gain a political or economic...
s, is rich in natural energy resources, the world’s leading net energy exporter, and a major supplier to the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. The main document defining the energy policy of Russia
Energy policy of Russia
The Energy policy of Russia is contained in an Energy Strategy document, which sets out policy for the period up to 2020. In 2000 the Russian government approved the main provisions of the Russian energy strategy to 2020, and in 2003 the new Russian energy strategy was confirmed by the government...
is the Energy Strategy, which initially set out policy for the period up to 2020, later was reviewd, amended and prolonged up to 2030. While Russia has also signed and ratified the Kyoto Protocol
Kyoto Protocol
The Kyoto Protocol is a protocol to the United Nations Framework Convention on Climate Change , aimed at fighting global warming...
.
India
The energy policy of IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
is characterized by trades between four major drivers:
- Rapidly growing economy, with a need for dependable and reliable supply of electricity, gas, and petroleum products;
- Increasing household incomes, with a need for affordable and adequate supply of electricity, and clean cooking fuels;
- Limited domestic reserves of fossil fuelFossil fuelFossil fuels are fuels formed by natural processes such as anaerobic decomposition of buried dead organisms. The age of the organisms and their resulting fossil fuels is typically millions of years, and sometimes exceeds 650 million years...
s, and the need to import a vast fraction of the gas, crude oil, and petroleum product requirements, and recently the need to import coal as well; and - Indoor, urban and regional environmental impacts, necessitating the need for the adoption of cleaner fuels and cleaner technologies.
In recent years, these challenges have led to a major set of continuing reforms, restructuring and a focus on energy conservation
Energy conservation
Energy conservation refers to efforts made to reduce energy consumption. Energy conservation can be achieved through increased efficient energy use, in conjunction with decreased energy consumption and/or reduced consumption from conventional energy sources...
.
Thailand
The energy policy of ThailandEnergy Industry Liberalization and Privatization (Thailand)
The management of energy in Thailand has been in a process of liberalization and privatization which was initiated by the government of Anand Panyarachun.- Electricity generation and transmission :...
is characterized by 1) increasing energy consumption efficiency, 2) increasing domestic energy production, 3) increasing the private sector's role in the energy sector, 4) increasing the role of market mechanisms in setting energy prices. These policies have been consistent since the 1990s, despite various changes in governments. The pace and form of industry liberalization and privatization has been highly controversial.
Australia
Australia's energy policy features a combination of coalCoal
Coal is a combustible black or brownish-black sedimentary rock usually occurring in rock strata in layers or veins called coal beds or coal seams. The harder forms, such as anthracite coal, can be regarded as metamorphic rock because of later exposure to elevated temperature and pressure...
power stations, and hydro electricity plants. The Australian Government has decided not to build nuclear power
Nuclear power
Nuclear power is the use of sustained nuclear fission to generate heat and electricity. Nuclear power plants provide about 6% of the world's energy and 13–14% of the world's electricity, with the U.S., France, and Japan together accounting for about 50% of nuclear generated electricity...
, although it is one of the world's largest producers of uranium..
See also
- Energy: world resources and consumption
- Energy balanceEnergy balanceEnergy balance may refer to:* First law of thermodynamics, according to which energy cannot be created or destroyed, only modified in form* Energy balance , a measurement of the biological homeostasis of energy in living systems...
- Energy lawEnergy lawEnergy laws govern the use and taxation of energy, both renewable and non-renewable. These laws are the primary authorities related to energy...
- Energie-CitésEnergie-CitésEnergy Cities, previously named Energie-Cités, is the European Association of local authorities focused on energy use. It represents 1000 towns and cities in 30 countries. From 2009 to 2011, Energy Cities is under the Presidency of the City of Heidelberg...
- Environmental policyEnvironmental policyEnvironmental policy is any [course of] action deliberately taken [or not taken] to manage human activities with a view to prevent, reduce, or mitigate harmful effects on nature and natural resources, and ensuring that man-made changes to the environment do not have harmful effects on...
- Nuclear energy policyNuclear energy policyNuclear energy policy is a national and international policy concerning some or all aspects of nuclear energy, such as mining for nuclear fuel, extraction and processing of nuclear fuel from the ore, generating electricity by nuclear power, enriching and storing spent nuclear fuel and nuclear fuel...
- Oil ShockwaveOil ShockwaveThe Oil Shockwave event was a policy wargaming scenario created by the joint effort of several energy policy think tanks, the National Commission on Energy Policy and Securing America's Future Energy. It outlined a series of hypothetical international events taking place in December 2005, all...
- RELP Renewable Energy Law and Policy Review
- Renewable energy policyRenewable energy policyRenewable energy policy is the principal driver of the growth in renewable energy use. As of 2011, 119 countries have some form of national renewable energy policy target or renewable support policy. National targets now exist in at least 98 countries...
- World Forum on Energy RegulationWorld Forum on Energy RegulationThe World Forum on Energy Regulation is the leading international conference on energy regulation, held once every three years.WFER IV is hosted by the Council of European Energy Regulators CEER and the Greek Regulator. WFER IV will be held in ATHENS, GREECE, from 18 to 21 October 2009...
(WFER)
External links
- "Geopolitics of EU energy supply", EurActiv, July 2005
- "Ifri Energy Program", Ifri
- "Our energy future - creating a low carbon economy", UK, February 2003
- Final report on the Green Paper "Towards a European strategy for the security of energy supply", EU, June 2004
- "Energy Policies of (Country x)" series, International Energy AgencyInternational Energy AgencyThe International Energy Agency is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development in 1974 in the wake of the 1973 oil crisis...
- Report of President Bush's National Energy Policy Group, May 2001
- Yahoo News Full Coverage: Energy Policy
- UN-Energy - Global energy policy co-ordination
- Energy & Environmental Security Initiative (EESI)
- Renewable Energy Policy Network (REN21)
- An interesting discussion of CO2 emissions from the Center for Global Studies
- Information on energy institutions, policies and local energy companies by country, Enerdata Publications