Who governs energy? The challenges facing global energy governance

This article conceptualizes the energy problems facing society from a global governance perspective. It argues that a notion of “global energy governance,” taken to mean international collective action efforts undertaken to manage and distribute energy resources and provide energy services, offers a meaningful and useful framework for assessing energy-related challenges. The article begins by exploring the concepts of governance, global governance, and global energy governance. It then examines some of the existing institutions in place to establish and carry out rules and norms governing global energy problems and describes the range of institutional design options available to policymakers. It briefly traces the role of a selection of these institutions, from inter-governmental organizations to summit processes to multilateral development banks to global action networks, in responding to energy issues, and points out their strengths and weaknesses. The article concludes by analyzing how the various approaches to global governance differ in their applicability to addressing the conundrums of global energy problems.     

Fusion energy : An energy source of the future?

With an increasing world population and a growing economy, the demand for energy is sure to grow. The latest predictions for world energy demand all show an upward trend and even with increased energy efficiency we will still need substantially more energy by 2050 than we use today. Where's it to come from? Dr Federico Casci of the European Fusion Development Agreement (EFDA) organisation believes part of the answer is fusion…     

Does energy efficiency save energy? The debate and its consequences

This paper considers the debate in the UK and the USA on some economists' claims that improving energy efficiency will lead to a greater energy consumption (than would have otherwise occurred), a concept termed the Khazzoom–Brookes postulate. It analyses the criticisms of this claim and of the responses, particularly of the concept of ‘dematerialization’. The paper attempts to tackle the paucity of empirical evidence in the UK by looking at long-term trends in efficiency and use with respect to UK public lighting. Finally, it focuses on the views of two economists, namely Len Brookes and William Rees, who both accept the postulate but have differing views and policies on measures to reduce carbon emissions from fossil fuels. Brookes believes in free-market solutions, whereas Rees puts forward a vision of a sustainable future based on ecological tax-reform and reafforestation.     

Developments of energy in EU–unlocking the wave energy potential

The New Entrance Reserve (NER300) is one of the leading mechanisms used for the application and promotion of clean energy projects. In this context, this study aims to investigate the evolution of wave energy projects within the first and second call of NER300. Furthermore, the study tries to identify the reasons of successful applications through an estimation analysis of energy production, avoided emission and energy security. Milder resources contain ‘hidden’ opportunities for wave energy, with lower expenditure and capacity factors equivalent and even over 20%. Lower extreme events indicate that associated installation costs can be considered reduced, thus the potential cost of energy may act as a positive driver for future development. The results of the study argue that there are regions with ‘hidden’ opportunities that can accelerate proof-of-concept and enhance viability for wave energy.     

Do energy efficiency measures really reduce household energy consumption? A difference-in-difference analysis

This study investigates the impact of energy efficiency measures installed through the Carbon Emission Reduction Target (CERT) and the Community Energy Saving Programme (CESP) on domestic gas and total energy consumptions. The recently released National Energy Efficiency Data-Framework (NEED) database is used to examine the changes in domestic gas and total energy consumptions for the dwellings in the sample relative to the changes in gas and total energy consumptions for a comparable control group in the year after installation. The results obtained from this difference-in-difference analysis confirm that observed energy consumption decreases significantly in dwellings following upgrades such as cavity wall insulation, loft insulation and a new efficient boiler. The single most effective energy efficiency measure when installed alone is found to be cavity wall insulation, reducing annual gas consumption by 10.5 % and annual total energy consumption by 8.0 % in the year following installation. Comparing bundles of different energy efficiency measures, we find that dwellings retrofitted with both cavity wall insulation and a new efficient boiler experience the largest reductions in annual gas and total energy consumptions of 13.3 and 13.5 %, respectively. This is followed by a mean annual reduction of 11.9 and 10.5 % in gas and total energy consumptions for dwellings with all three energy efficiency measures installed in the same year. Contrary to expectations, installing cavity wall insulation on its own is found to be more effective in reducing measured energy consumption than combining loft insulation and a new efficient boiler.     

Seasonal relationship of peak demand and energy impacts of energy efficiency measures—a review of evidence in the electric energy efficiency programmes

While energy efficiency programmes traditionally focus on energy savings, there is also a policy interest in their impact on system peak demand. Examples include demand-side management, integrated resource planning and recent developments to integrate energy efficiency into forward capacity markets. However, there is only limited research on the relationship between peak demand impacts and overall energy savings from efficiency measures, although this relationship can have important bearings on efficiency programmes. This paper reviews utility efficiency programmes in nine jurisdictions in North America and analyses how the seasonal peak-energy relationship differs between commercial and industrial (C&I) and residential sectors, among efficiency measures. In terms of the seasonal difference in peak demand impacts, these programmes show that residential lighting and residential water heating can deliver greater peak savings in weekday early evening winter peak periods. By contrast, C&I lighting and residential appliances make higher peak savings in weekday afternoon summer peak periods. A seasonal difference is more significant in lighting, especially residential lighting, than other measures. The evidence from North America also suggests that space cooling in both sectors and C&I lighting may well make greater peak savings relative to non-peak impacts than other measures during summer peak periods, while in winter peak periods, residential lighting can achieve greater peak savings relative to non-peak impacts. This review highlights the significance of regional electricity use patterns along with climatic and regulatory conditions and indicates how further research may contribute to appropriate electricity demand reduction programme design and monitoring regimes in particular regions.     

Climbing the energy ladder or diversifying energy sources? The continuing importance of household use of biomass energy in urbanizing communities in Northeast Thailand

Following the energy ladder model, the role of biomass energy will diminish and even disappear as rural communities become more urbanized. However, the alternative fuel stacking model suggests that, as households become more urbanized, they diversify their energy sources while continue using firewood and charcoal. This study aimed to assess the extent to which biomass energy still plays an important role as a source of energy for household consumption across the urbanization spectrum of communities. Three villages in Khon Kaen province in Northeast Thailand representing the rural, suburban and urban communities were selected for study. Data were collected on energy uses at household level using a formal questionnaire survey along with field observation and field measurement. The results showed that total household energy consumption increased with urbanization. The absolute quantity of biomass energy used slightly increased when going from rural (5.52 GJ caput⁻¹ y⁻¹) to suburban (6.06 GJ caput⁻¹ y⁻¹) but greatly decreased for urban community (1.98 GJ caput⁻¹ y⁻¹), while the relative share declined with greater urbanization, being 46.2, 37.4 and 10.2% for the rural, suburban and urban communities, respectively. Both firewood and charcoal were used primarily for cooking, with a small amount used for home industry. It was concluded that, although the share of biomass energy in household energy portfolios does decline relative to modern energy sources in the course of urbanization, as predicted by the energy ladder model, there is no sharp discontinuity in utilization of energy sources between communities at different stages of urbanization and biomass continue to be an important component of household energy portfolios in all communities, supporting the fuel stacking model. It appears likely that biomass will remain an important source of household energy in Thailand for an extended period.     

The energy sector in Eritrea—institutional and policy options for improving rural energy services

The energy consumption patterns and in particular, those of the rural household and small and medium enterprises (SMEs) in Eritrea are assessed. Eritrea's total final energy consumption in 1998 was estimated to be around 619,580 toe, of which 68% was consumed by the household sector, 16% by the commercial/public sector, 13% by transport and 3% by industry. The sources of energy were 66.3% biomass based (fuelwood, dung, charcoal, agri-residue), 31% oil products and 2% electricity. It is also noted that 98% of the rural population and 20% of the urban residents do not have access to electricity. Over 80% of the energy needs of rural enterprises is met by biomass or animate/human labour. To analyse the root problems hindering the wider dissemination of modern energy services to rural areas, two key hypotheses related to policy and institutional framework were selected and tested. The findings indicate that Eritrea has general energy policies pertaining to the development of electricity, oil and renewable energy sub-sectors for the benefit of the public and the economy. The absence of sharply focussed, pro-rural energy policy and/or their policy instruments has been observed. The key problem is, however, the weakness in implementation of rural energy projects and programmes. This is mainly due to inappropriate institutional structure and/or gaps in the structure, in addition to lack of corporate culture; poor incentives for workers; and, poor linkages among the various stakeholders concerned in energy for rural development.     

Switching towards coal or renewable energy? The effects of financial capital on energy transitions

Does a country's stock of financial capital affect its ability to achieve energy transitions? This paper uses data for up to 137 countries for the period 1998–2013 to investigate the importance of financial capital for changes in the use of each energy type. I find that financial capital supports transition to more capital-intensive energy types. For high-income countries, financial capital facilitates transitions from fossil fuels to modern renewable energy sources, especially wind. Both private credit from banks and domestic private debt securities support greater shares of wind energy. For lower-income countries, financial capital supports progression from biomass towards fossil fuel energy sources such as coal. I also find that countries with larger stocks of financial capital are more likely to move to more capital-intensive electricity generation systems.     

Modeling China’s energy dilemma: conflicts among energy saving,energy security,and CO<Subscript>2</Subscript> mitigation

This study analyzes China’s future energy scenarios stretching until 2050 under different policy portfolios of energy security (e.g., oil import dependency) and CO₂ emissions control. Four scenarios, namely, ① business as usual, ② strong oil import dependency (OID) control, ③ strong CO₂ emissions control, and ④ twofold emphasis on OID and CO₂ emissions control, are designed. The results reveal the existence of conflicts among China’s multiple objectives, particularly energy saving, energy security, and CO₂ mitigation. Based on the analysis, an improvement in China’s efficiency in fossil energy conversion and the promotion of the utilization of non-fossil energy such as nuclear, wind, and hydro energy are recommended. The over-development of coal-derived fuels should also be avoided because of incremental coal consumption and CO₂ emissions. Furthermore, research on and development of carbon capture and storage technologies should be promoted, while the energy efficiency loss caused by integrating these technologies into energy systems should be reduced in view of the high possibility of stricter standards for CO₂ emissions in the future.     

How much will the energy service directive contribute to the 20% EU energy savings goal?

The Energy Service Directive (ESD) of the European Union (EU) stipulates that member states realize 9% energy savings for the period 2008–2016. A harmonized calculation approach, consisting of a combination of top-down and bottom-up methods, will be developed to determine the savings of energy efficiency improvement measures. However, it is unclear which part of all realized energy savings is eligible in meeting the ESD target. One can argue that not all savings, especially the autonomous efficiency gains, should be accounted for, but only savings due to (new) policy. An analysis is made of the way the methods can be applied, how baseline choices define the savings and whether these represent policy-induced savings. It is shown that the given target could be met with total energy savings that equal 1.0% of ESD energy use per year, hardly more than realized at present. With other choices, the target is met with total savings of 1.6% per year. The savings found are made comparable with the 2.4% yearly savings derived from the 20% savings target for 2020 formulated by the EU. Given the large gap between ESD savings and the savings target, it is concluded that the methods and baselines used should be chosen such that the ESD target leads to realized savings after 2008 at the upper side of the margin.     

Insurmountable opportunities? Canada's energy efficiency resources

We review the potential for increased energy efficiency in Canada. Following discussion of the theoretical and conceptual basis for treating energy efficiency as a resource, the potential for increased efficiency is assessed in three categories: resource base (the maximum physical potential), ultimate recoverable resources (the maximum technical potential), and proven resources (cost-effective and technically available efficiency increases). The resulting estimates are compared with estimates from a companion paper, in which we assess energy-supply resources using the same set of categories. The policy implications of both sets of estimates are discussed.     

Solar–hydrogen energy system for Egypt

A model for a solar–hydrogen energy system for Egypt has been developed by obtaining relationships for and between the main energy and energy related parameters. The magnitude and trends of the parameters, with and without hydrogen introduction, have been investigated over a period of time. The results indicate that the fossil fuel resources in Egypt could be exhausted within one to two decades. They also indicate that adopting the solar–hydrogen energy system would extend the availability of fossil fuel resources, reduce pollution, and establish a permanent energy system for Egypt. They show that Egypt could become an exporter of hydrogen. © 1999 International Association for Hydrogen Energy.     

Will energy crop yields meet expectations?

Expectations are high for energy crops. Government policies in the United States and Europe are increasingly supporting biofuel and heat and power from cellulose, and biomass is touted as a partial solution to energy security and greenhouse gas mitigation. Here, we review the literature for yields of 5 major potential energy crops: Miscanthus spp., Panicum virgatum (switchgrass), Populus spp. (poplar), Salix spp. (willow), and Eucalyptus spp. Very high yields have been achieved for each of these types of energy crops, up to 40 t ha⁻¹ y⁻¹ in small, intensively managed trials. But yields are significantly lower in semi-commercial scale trials, due to biomass losses with drying, harvesting inefficiency under real world conditions, and edge effects in small plots. To avoid competition with food, energy crops should be grown on non-agricultural land, which also lowers yields. While there is potential for yield improvement for each of these crops through further research and breeding programs, for several reasons the rate of yield increase is likely to be slower than historically has been achieved for cereals; these include relatively low investment, long breeding periods, low yield response of perennial grasses to fertilizer, and inapplicability of manipulating the harvest index. Miscanthus × giganteus faces particular challenges as it is a sterile hybrid. Moderate and realistic expectations for the current and future performance of energy crops are vital to understanding the likely cost and the potential of large-scale production.     

The savings of energy saving: interactions between energy supply and demand-side options—quantification for Portugal

Reducing demand by increasing end-use energy efficiency on the demand side of energy systems may also have advantages in reducing fossil dependency and greenhouse gas (GHG) emissions on the supply side. This paper addresses interactions between energy supply- and demand-side policies, by estimating the impact of measures addressing end-use energy efficiency and small-scale renewables uses in terms of (1) avoided large-scale electricity generation capacity, (2) final energy consumption, (3) share of renewables in final energy and (4) reduction of GHG emissions. The Portuguese energy system is used as a case study. The TIMES_PT bottom-up model was used to generate four scenarios covering the period up to 2020, corresponding to different levels of efficiency of equipment in buildings, transport and industry. In the current policy scenario, the deployment of end-use equipment follows the 2000–2005 trends and the National Energy Efficiency Action Plan targets. In the efficient scenarios, all types of equipment can be replaced by more efficient ones. Results show that aggressive demand-side options for the industry and buildings sector and the small-scale use of renewables can remove the need for the increase in large-scale renewable electricity capacity by 4.7 GW currently discussed by policy makers. Although these measures reduce total final energy by only 0–2 %, this represents reductions of 11–14 % in the commercial sector, with savings in total energy system costs of approximately 3,000 million euros₂₀₀₀—roughly equivalent to 2 % of the 2010 Portuguese GDP. The cost-effectiveness of policy measures should guide choices between supply shifts and demand reduction. Such balanced policy development can lead to substantial cost reductions in climate and energy policy.     

Capturing energy efficiency in European iron and steel production—comparing specific energy consumption and Malmquist productivity index

European iron and steel producers are working towards increased energy efficiency to meet requirements set by European policies such as the Energy Efficiency Directive. In this study, we show that the specific energy consumption (SEC), representing the iron and steel sector in the Odyssee energy efficiency index (ODEX)—the tool for policy evaluation recommended by the European Commission—is insufficient for capturing energy efficiency trends of European iron and steel production. European producers focus on niche markets, diversifying and specialising their set of products well beyond crude steel, which is the benchmark product for deriving the SEC. We compare the SEC with the more comprehensive Malmquist productivity index (MPI) methodology, which is calculated using data envelopment analysis (DEA) techniques. An evaluation of energy efficiency trends during 2000–2010 showed that the SEC overestimated energy efficiency improvements for European steel industries, while underestimating the improvements achieved by Swedish steel industries. A comparison between the SEC, the MPI/DEA approach, and energy intensity based on value added in the Swedish case provides further insight to the methodological differences between the approaches. We conclude that the approaches highlight different aspects of energy efficiency analyses and that the SEC is not sufficient for capturing the energy efficiency of steel industries.     

The fossil energy/climate change crunch: Can we pin our hopes on new energy technologies?

There is a growing perception by society of the risks of dramatic global climate changes due to anthropogenic greenhouse gases, in particular energy related emissions of CO₂. This has spurred a renewed interest in carbon free or carbon neutral technologies for converting sources of renewable primary energy to electricity and to transportation fuels. However, it takes energy to produce energy, even when the primary source is energetically cost free, such as solar or wind. The aim of this letter is to present a model which allows the simulation of the energy costs of the deployment of a new energy technology. We show that the new technology may actually be an energy sink, instead of an energy source, relative to the global total primary energy supply (TPES) for many years or decades, depending on its intrinsic energy costs and deployment path, even though stated aims for its gross energy output are achieved. As expected, the energy payback time of the conversion devices, as well as fuel and maintenance costs are critical parameters. We illustrate the general model with simulations of the deployment of photovoltaic electricity, at global and national levels.     

Renewable energy strategies for rural Africa: is a PV-led renewable energy strategy the right approach for providing modern energy to the rural poor of sub-Saharan Africa?

Rural areas continue to be home to majority of the population in Africa. The importance of providing modern energy to rural areas cannot, therefore, be overemphasised. Despite numerous efforts by Governments and donors in the region to promote solar photovoltaics (PVs) for rural electrification (almost every country in the region has had a rural electrification PV project), access to modern energy in rural Africa continues to be woefully low. In addition to being unaffordable to the rural masses, solar PV has the limitation that it can only be used for lighting and powering low-voltage appliances. This article reviews emerging trends in the rural energy sector of sub-Saharan Africa, and discusses the limitations of over-reliance on solar PV. It suggests possible options that could have greater impact on rural clean energy development. For the majority of rural households in the region, biomass fuels will continue to be the dominant fuel of choice. Efficient technologies for the use of biomass would, therefore, ensure that scarce biomass resources are effectively utilised, and reduce the negative impacts of biomass use on women and children's health. Solar thermal, windpumps, micro-/pico-hydropower and cleaner fuels such as kerosene and LPG, have not received adequate attention from policy makers. These energy options could significantly improve the performance of rural small- and micro-enterprises. This article argues that rural energy policies that emphasise a broader range of renewables and target income-generating activities are likely to yield greater benefits to the rural poor than the current policies that rely on the solar PV option.