The policy perspective for RES development in the new member states of the EU

The energy sector of the European Union (EU) is based mainly on fossil fuels and almost two-thirds of the energy demand is imported. In the future, fossil fuels are expected to strengthen their participation in the European energy balance and imports will amount to 70% of overall energy needs. On the other hand, the development of Renewable Energy Sources (RES) is a central aim of the European Commission's energy policy. RES hold a significant share in the 10 new countries recently joined the EU and the adoption of RES-related policies is of imperative importance for the joint cooperation of the new member states with the EU. This paper includes a review of RES status, related policies and prospects in each of the 10-new member states of EU.     

Impact of energy policy instruments on the estimated level of underlying energy efficiency in the EU residential sector

The promotion of energy efficiency is seen as one of the top priorities of EU energy policy (EC, 2010). In order to design and implement effective energy policy instruments, it is necessary to have information on energy demand price and income elasticities in addition to sound indicators of energy efficiency. This research combines the approaches taken in energy demand modelling and frontier analysis in order to econometrically estimate the level of energy efficiency for the residential sector in the EU-27 member states for the period 1996 to 2009. The estimates for the energy efficiency confirm that the EU residential sector indeed holds a relatively high potential for energy savings from reduced inefficiency. Therefore, despite the common objective to decrease ‘wasteful’ energy consumption, considerable variation in energy efficiency between the EU member states is established. Furthermore, an attempt is made to evaluate the impact of energy-efficiency measures undertaken in the EU residential sector by introducing an additional set of variables into the model and the results suggest that financial incentives and energy performance standards play an important role in promoting energy efficiency improvements, whereas informative measures do not have a significant impact.     

Interaction effects of energy efficiency policies: a review

Increasing energy efficiency and savings will play a key role in the achievement of the climate and energy targets in the European Union (EU). To meet the EU’s objectives for greenhouse gas emission reductions, renewable energy use and energy efficiency improvements, its member states have implemented and will design and implement various energy policies. This paper reviews a range of scientific articles on the topic of policy instruments for energy efficiency and savings and evaluates the strengths and weaknesses of different measures. The review demonstrates the variety of possible instruments and points to the complex policy environment, in which not a single instrument can meet the respective energy efficiency targets, but which requires a combination of multiple instruments. Therefore, the paper in particular focuses on assessing potential interactions between combinations of energy efficiency policies, i.e. the extent to which the different instruments counteract or support one another. So far, the literature on energy efficiency policy has paid only limited attention to the effect of interacting policies. This paper reviews and analyses interaction effects thus far identified with respect to factors that determine the interaction. Drawing on this review, we identify cases for interaction effects between energy efficiency policies to assess their potential existence systematically and to show future research needs.     

Monitoring of energy supply sustainability in the Baltic Sea region

BASREC (Baltic Sea Region Energy Cooperation) was established in 1999. It brings together the 11 countries around the Baltic Sea (Denmark, Estonia, Finland, Germany, Iceland, Latvia, Lithuania, Norway, Poland, Russia, and Sweden) and the European Commission. BASREC offers a unique regional forum, in which policies and projects of regional and broader significance can be prepared and implemented. Five working groups within BASREC, for Bioenergy, Climate Change, Electricity, Energy Efficiency and Gas, were active in the period 2003–2005. These working groups quite well represent the priorities of regional energy cooperation in the Baltic Sea region. Since the EU participates actively in BASREC activities, this kind of cooperation can provide for the EU sustainable energy policy promotion in non-member countries, such as Russia, and can help sharing the experience between old and new member states as well as facilitate the know how transfer from such highly developed and advanced in sustainable development countries as Iceland and Norway to less developed ones.     

欧盟可再生能源发展到2010年将达到12%

欧盟可再生能源发展到2010年将占到总能源消费量的12%。为了确保其目标的实现,他们将目标按行业分解到各成员国,并要求各成员国制定相应的政策和措施保证其目标的实现。本文分析了欧盟实现该目标的可能性,介绍了欧洲可再生能源产业界在欧盟目标的基础上发布的2020年产业发展目标。     

The progress of RES environment in the most recent member states of the EU

The most recent EU member states seem to have important Renewable Energy Sources (RES) potential. However, they have serious structural difficulties in development and integration of RES policies. Indeed, the balanced development of RES between the member states is urgent today. The penetration of the RES in these member states is related to the existence of an appropriate environment (political, economical, social, and technological). The current paper is based on an analytical review and specific PEST analysis aiming to assess the current RES environment and the progress so far in each of these most recent EU members.     

Overcoming problems in Turkey's renewable energy policy: How can EU contribute?

Fossil fuels cover most of the energy demand in the world, and this creates significant social, economic and environmental problems. Many countries have taken measures to increase the share of renewable energy sources (RES), especially in electricity generation, and the review of literature shows that the success of a country in RES diffusion depends on a comprehensive renewable energy policy which combines political commitment with stable and long-term support measures that stimulate technological innovation. As the largest economy in the world, EU has also taken steps to increase RES usage in electricity generation in member states. Similar to other developing countries, Turkey is learning lessons from EU experiences regarding RES policies, and Turkey is also reforming its legal framework in line with acquis communautaire as a candidate country. As a result, EU has a multiway impact on Turkey's renewable energy policy. An overview of Turkey's renewable energy policy showed that EU has significantly contributed to Turkey in shaping its renewable energy policy, and Turkey should increase cooperation with EU in order to utilize its renewable energy potential.     

Global energy security and the implications for the EU

The following article will analyse the global and geopolitical dimensions of the future international energy security and its implications for Europe and the EU-27. In this context, I will discuss to which extent the EU's newly proclaimed “Energy Action Plan” of the EU Spring summit of 2007 and its declared common energy (foreign) policy are a sufficient strategy to cope with the new global and geopolitical challenges. The article concludes the following: (1) The interlinkage between globally designed traditional energy security concepts – that rely just on economic factors and “market-strategies” – and domestic as well as regional political stability demands new thinking with regard to both energy supply security and foreign and security policies. (2) Although after the Russian–Ukrainian gas conflict in January 2006, energy security has forced its way up the European energy and foreign policy agendas, the EU-27 member states have largely failed to forge a coherent European energy security and energy foreign policy strategy after their Spring summit of 2007 because its declared political solidarity has been still lacking. But the 2nd Strategic Energy Review of November 2008 has recommended new initiatives to overcome this lack by promoting concrete infrastructure and other projects for enhancing Europe's supply security and its political solidarity as part of a common energy (foreign) policy. If the EU is able to implement the March 2007 and November 2008 decisions, the EU oil and gas demand will drastically reduce and freeze at current levels. In this case, Putin's energy policies by using Russia's energy resources and pipeline monopolies as a political instrument to enforce its economic and geopolitical interests will be proved as self-defeating in Russia's long-term strategic interests. It will reduce Gazprom's gas exports to a much smaller EU gas market than originally forecasted as the result of a deliberate EU policy of decreasing its overall gas demand and by diversifying its gas imports.     

The energy intensity in Lithuania during 1995–2009: A LMDI approach

The measurement, assessment, and effective mitigation of energy intensity compose a foremost objective of contemporary energy policy. Although the European Union (EU) Member States have been experiencing the convergence in energy efficiency indicators, Lithuania, acceded to the EU in 2004, still remains peculiar with relatively high energy intensity. Our study, therefore, is aimed at analyzing the energy intensity trends in Lithuanian economy as a whole as well as in separate economic sectors. The investigation covers the period of 1995–2009. The Logarithmic Mean Divisia Index was applied for decomposition analysis. Our analysis has shown that energy efficiency falls during economic downturn. In order to facilitate these challenges the Lithuanian Government as well as business should opt for increasing energy efficiency in the most problematic sectors of transport and services. In addition, the analysis of legal acts, namely National Energy Efficiency Programme for 2006–2010 and Energy Efficiency Action plan for 2010–2016, was taken into consideration. Some suggestions, thus, were offered for successful implementation of strategic goals outlined in the aforementioned strategic documents.     

A harmonized calculation model for transforming EU bottom-up energy efficiency indicators into empirical estimates of policy impacts

This study is an impact analysis of European Union (EU) energy efficiency policy that employs both top-down energy consumption data and bottom-up energy efficiency statistics or indicators. As such, it may be considered a contribution to the effort called for in the EU's 2006 Energy Services Directive (ESD) to develop a harmonized calculation model. Although this study does not estimate the realized savings from individual policy measures, it does provide estimates of realized energy savings for energy efficiency policy measures in aggregate. Using fixed effects panel models, the annual cumulative savings in 2011 of combined household and manufacturing sector electricity and natural gas usage attributed to EU energy efficiency policies since 2000 is estimated to be 1136 PJ; the savings attributed to energy efficiency policies since 2006 is estimated to be 807 PJ, or the equivalent of 5.6% of 2011 EU energy consumption. As well as its contribution to energy efficiency policy analysis, this study adds to the development of methods that can improve the quality of information provided by standardized energy efficiency and sustainable resource indexes.     

Analysis and decomposition of energy consumption in the Chilean industry

With rising energy costs and climate change concerns, energy efficiency will be important in maintaining competitiveness and reducing the environmental impact of industrial activities. In this paper we study the Chilean industrial sector, which is the largest consumer of energy within the country. Energy demand and CO₂ emissions in Chile have grown rapidly in recent years while energy supply is mostly imported and subject to disruption. Therefore, it is important to understand energy consumption in this sector and determine which sub-sectors have the greatest potential to reduce energy consumption. We used the Index Decomposition Analysis (IDA), applying the Logarithmic Mean Divisia Index method I (LMDI-I), to quantify the impact of diverse driving factors on energy consumption. Furthermore, a panel data analysis was used to determine whether there are differences in energy intensity across firms with different characteristics. Our results show that energy intensity has risen over time although energy consumption remains stable. This fact supports the idea that energy efficiency policies could play an important role for the industrial sector. Additionally, energy consumption and energy intensity follow different patterns in each sub-sector; therefore we conclude that the application of differentiated sectoral policies is preferable over a single global policy.     

Formulating a modern energy companies’ environment in the EU accession member states through a decision support methodology

One of the current energy policy's goals in the European Union (EU) is the exchange of knowledge and experience between the EU-15 member states and the new as well as the candidate countries in issues regarding the development of Renewable Energy Sources and the promotion of Energy Efficiency (EE). Nowadays, the liberalization of energy markets and the deterioration of the climate, in combination with the non-stop crude oil price increase, have had a decisive influence on the development of the above sectors. In addition, one of the most important elements for the renewable energy and EE development is the enhancement of energy producers by renewable energy and Energy Service Companies (ESCOs), respectively. These companies’ success is based on the formulation of a modern environment in each EU member state. However, the environment in the new and candidate member states is less mature than the environment in the EU-15 member states, as it is still in its development phase. In this context, the main aim of this paper is to present a “multi-dimensional” decision support methodology for the formulation of modern energy companies’ operational environment in the 13 new and candidate member states of the EU.     

Energy efficiency trends and policy in Slovenia

The energy dependency of Slovenia is high (52.1%), but it is a little lower than the average energy dependency in the EU 27 (53.8%). Slovenia imports all its petroleum products and natural gas and partly coal and electricity. The energy intensity of Slovenia is higher by about 50% than the average in the EU 27. The target of the EU Directive on energy end-use efficiency and energy services adopted in 2006 is to achieve a 9% improvement of EE (energy efficiency) within the period 2008-2016. The new target of the EU climate and energy package “20-20-20 plan” is a 20% increase in EE by 2020. Since 1991 the Slovenian government has been supporting energy efficiency activities. The improvement of EE was one of the targets of strategic energy documents ReSROE (Resolution on the Strategy of Use and Supply of Energy in Slovenia from 1996 and ReNEP (Resolution on the National Energy Programme) from 2004 adopted by the Slovenian National Assembly (Parliament) in previous years. The Energy Act adopted in 1999 defines the objective of energy policy as giving priority to EE and utilization of renewable energy sources. The goals of the “National Energy Action Plan 2008-2016 (NEEAP)” adopted by the Slovenian government in 2008 include a set of energy efficiency improvement instruments in the residential, industrial, transport and tertiary sectors. The target of the NEEAP is to save final energy in the 2008-2016 period, amounting to at least 4261 GWh or 9% of baseline consumption. The indicators of energy efficiency trends show considerable improvement in the period from 1998 to 2007. The improvement of EE was reached in all sectors: manufacturing, transport and households. The paper analyses the structure, trends of energy consumption and energy efficiency indicators by sectors of economic activity. A review of energy efficiency policy and measures is described in the paper.     

Comparison of the evolution of energy intensity in Spain and in the EU15. Why is Spain different?

Energy intensity in Spain has increased since 1990, while the opposite has happened in the EU15. Decomposition analysis of primary energy intensity ratios has been used to identify which are the key sectors driving the Spanish evolution and those responsible for most of the differences with the EU15 energy intensity levels. It is also a useful tool to quantify which countries and economic sectors have had most influence in the EU15 evolution. The analysis shows that the Spanish economic structure is driving the divergence in energy intensity ratios with the EU15, mainly due to strong transport growth, but also because of the increase of activities linked to the construction boom, and the convergence to EU levels of household energy demand. The results can be used to pinpoint successful EU strategies for energy efficiency that could be used to improve the Spanish metric.     

ASEAN towards clean and sustainable energy: Potentials,utilization and barriers

This paper reports the outcome of the project on “Capacity building in formulating harmonized policy instruments for the promotion of Renewable Energy and Energy Efficiency in the ASEAN member countries”. With the growing concerns about green house gas (GHG) emission and consequent climate change, renewable energy sources have become more attractive option for electricity generation around the world. Studies have been made on the status of renewable energy potential and utilization, major barriers in promoting renewable energy in ASEAN countries, major energy policies to overcome barriers, and existing renewable energy and energy efficiency policies in ASEAN countries. Paper concludes that ASEAN has not utilized its renewable energy resources anywhere near to the potential. Analysis found that the key factor that has to be amended is “policies and regulations in renewable energy and energy efficiency” at both country level and regional level. But, ASEAN is not yet ready for the full harmonization of the policies. However, it recommends that, with the project outputs it is possible to focus on the specific policy instruments common to most of the member countries, such that it could use to augment ASEAN Plan of Action for Energy Cooperation (APAEC) initiatives.     

Analysis of the energy intensity of Kazakhstan: from data compilation to decomposition analysis

There are large gaps in energy consumption data and consequently in the estimates of CO₂ emissions from fuel combustion in Kazakhstan. This study provides the first comprehensive review of energy consumption trends in Kazakhstan, discusses several important discrepancies in energy statistics and presents an improved versions of Energy Balances, developed using additional data. The results indicate that Kazakhstan’s energy intensity of gross domestic product (GDP) declined by 30% from 1.14 to 0.8 toe/thousand 2005USD between 2000 and 2014. To understand factors influencing this decline, the change in energy intensity of GDP was decomposed using the Logarithmic Mean Divisia Index I method. The upstream sector (mainly oil and gas) played the most important role in the observed GDP energy intensity change. Although the share of this sector in total GDP increased, causing an increase in energy intensity due to inter-sectoral structural effects, the consequences were counteracted by a twofold decline in the sector’s energy intensity, resulting in a net decrease. On the contrary, the power and heat, transport and household sectors saw an increase in energy intensity between 2000 and 2014. The results clearly demonstrate that there is an urgent need for policies and measures to be put in place in the power and heat, household and transport sectors, to support renewable energy development, increase buildings’ energy efficiencies, replace inefficient stoves and improve heating systems and encourage changes in public transportation systems. Furthermore, improving energy statistics and setting appropriate sectoral energy intensity reduction targets are crucial for achieving real efficiency improvements in the economy.     

Measuring persistent and transient energy efficiency in the US

The promotion of US energy efficiency policy is seen as a very important activity. Generally, the level of energy efficiency of a country or state is approximated by energy intensity, commonly calculated as the ratio of energy use to GDP. However, energy intensity is not an accurate proxy for energy efficiency given that changes in energy intensity are a function of changes in several factors including the structure of the economy, climate, efficiency in the use of resources, behaviour and technical change. The aim of this paper is to measure persistent and transient energy efficiency for the whole economy of 49 states in the US using a stochastic frontier energy demand approach. A total US energy demand frontier function is estimated using panel data for 49 states over the period 1995 to 2009 using two panel data models: the Mundlak version of the random effects model (which estimates the persistent part of the energy efficiency) and the true random effects model (which estimates the transient part of the energy efficiency). The analysis confirms that energy intensity is not a good indicator of energy efficiency, whereas, by controlling for a range of economic and other factors, the measures of energy efficiency obtained via the approach adopted here are. Moreover, the estimates show that although for some states energy intensity might give a reasonable indication of a state’s relative energy efficiency, this is not the case for all states.     

Red light for Green Paper: The EU policy on energy efficiency

The EU Green Paper on energy efficiency calls for action to decrease energy use and thus achieve increased competitiveness, fulfil the environmental targets and increase security of supply. In this comment, we examine the role the EU Commission suggest that energy efficiency, and policies supporting energy efficiency, takes. The policies and the suggestions are qualitatively elaborated upon in the light of the goal of a common European electricity market. We suggest that the rationales for the energy efficiency measures are weak, and that the suggested goals of increased competitiveness, environmental targets, and security of supply are best reached with the direct measures especially designed for each goal. Some of the energy efficiency measures may counter-act other direct policies. Further, The Green Paper measures may prove detrimental to the European Electricity market insofar as the policies suggested could lead to a policy fatigue among the electricity consumers.     

How ambitious are China and India’s emissions intensity targets?

Several developing economies have announced carbon emissions targets for 2020 as part of the negotiating process for a post-Kyoto climate policy regime. China and India’s commitments are framed as reductions in the emissions intensity of the economy by 40–45% and 20–25%, respectively, between 2005 and 2020. How feasible are the proposed reductions in emissions intensity for China and India, and how do they compare with the targeted reductions in the US and the EU? In this paper, we use a stochastic frontier model of energy intensity to decompose energy intensity into the effects of input and output mix, climate, and a residual technology variable. We use the model to produce emissions projections for China and India under a number of scenarios regarding the pace of technological change and changes in the share of non-fossil energy. We find that China is likely to need to adopt ambitious carbon mitigation policies in order to achieve its stated target, and that its targeted reductions in emissions intensity are on par with those implicit in the US and EU targets. India’s target is less ambitious and might be met with only limited or even no dedicated mitigation policies.     

The perspectives of energy production from coal‐fired power plants in an enlarged EU

The aim of this paper is to present the current status of the coal‐fired power sector in an enlarged EU (EU‐15 plus EU member candidate states) in relation with the main topics of the European Strategy for the energy production and supply. It is estimated that 731 thermoelectric units, larger than 100 MW_e, are operating nowadays, and their total installed capacity equals to 200.7 GW_e. Coal contribution to the total electricity generation with reference to other fuel sources, is by far more intensive in the non‐EU part (EU member candidate states), compared to the EU member states. It is expected that even after the enlargement, the European Union will strongly being related to coal. Enlargement will bring additional factors into play in order to meet the requirements of rising consumption, growing demand for conventional fuels and increasing dependence on imports. Besides the technology, boiler size, efficiency, age and environmental performance will determine the necessities of the coal‐fired power sector in each country. Depending on the case, lifetime extension measures in operating coal‐fired power plants or clean coal technologies can play an important role towards the energy sector restructuring. Low efficiency values in the non‐EU coal‐fired units and heavily aged power plants in EU countries will certainly affect decisions in favour of upgrading or reconstruction. The overall increase of efficiency, the reduction of harmful emissions from generating processes and the co‐combustion of coal with biomass and wastes for generating purposes indicate that coal can be cleaner and more efficient. Additionally, plenty of rehabilitation projects based on CCT applications, have already been carried out or are under progress in the EU energy sector. The proclamations of the countries' energy policies in the coming decades, includes integrated renovation concepts of the coal‐fired power sector. Further to the natural gas penetration in the electricity generation and CO₂ sequestration and underground storage, the implementation of CCT projects will strongly contribute to the reduction of CO₂ emissions in the European Union, according to the targets set in the Kyoto protocol. In consequence, clean coal technologies can open up new markets not only in the EU member candidate states, but also in other parts of the world. Copyright © 2004 John Wiley & Sons, Ltd.