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Transcript of IEA 2012 Annual Report - International Energy · PDF fileInternational Energy Agency 2012...
IEA member countries:
Australia Austria
Belgium Canada
Czech RepublicDenmark
Finland France
GermanyGreece
HungaryIreland
ItalyJapan
Korea (Republic of)LuxembourgNetherlandsNew Zealand NorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerland
TurkeyUnited Kingdom
United States
The European Commission also participates in
the work of the IEA.
International Energy Agency
2012 Annual Report
About this review
The IEA Executive Director’s 2012 Annual Report continues our annual practice of reporting on our
operational and organisational achievements and goals.
International Energy Agency 2012 Annual Report
3
Introduction
The global energy map is changing.
That was a clear message from IEA analysis in 2012, and it emerged as a theme across major IEA
reports, public engagements and political consultations.
That changing energy map will recast our expectations about the role of different countries, regions
and fuels over the coming decades. When it comes to energy, we are living in a time of game‐
changers across the fuel spectrum, as well as tectonic changes in terms of a rebalancing global
economy. Like other elements of the international system, international energy governance is being
confronted with a need to adapt in the face of new realities.
The IEA is at the centre of international global energy policy, but we recognise that in order to
maintain that position we need to reach beyond our traditional focus and membership. In many
ways, we already have. The IEA is not only a leader in analysis of the oil market, but across the fuel
spectrum. Not only does it embrace the need for sustainability, it also works to convince its
members and the world of the vital need to transition to a modern and clean energy economy – to
mitigate climate change, but also to improve economic development, energy security, energy access,
and quality of life for this generation and the ones to come. For many years, the IEA has worked
beyond its membership, initiating projects and activities to engage with partners, and identify
shared interests with others beyond its membership.
But we also recognise that the IEA has had to fundamentally reposition itself. That is an ongoing
process, which will be dictated by a clear vision and direction of the Agency. The change in Executive
Director in September 2011 offered a fresh opportunity to lay out that vision – and it is one focused
on energy security in support of economic prosperity and sustainability. It is a direction which not
only serves the interests of our member governments, but also recognises that those interests are
shared with other major energy players, both partner countries and industry – and can only be
realised in close co‐operation. At the same time, our direction must remain focused, particularly in
the context of such a rapidly changing world.
In February 2012, following intense reflection among senior management, the IEA prepared a Strategy
Paper to identify and clarify the Agency’s strategic direction. Given the wider political and economic
environment, and having defined key challenges for the Agency, it identified some key action items:
strengthening the IEA position in global energy governance;
ensuring continued value to member countries;
clarifying the IEA role vis‐à‐vis other international organisations and fora;
strengthening IEA engagement with and relevance to key partner countries and non‐
member stakeholders;
maximising IEA impact and reputation;
responding to the challenge of resource constraints; and
realigning the internal Secretariat structure with Agency priorities.
The Strategy Paper also set forth specific steps to fulfil those action items over the year and beyond.
International Energy Agency 2012 Annual Report
4
In many ways, 2012 was a year of strategic transition for the IEA, which impacted our work, our
products and our global relationships. This report from the Executive Director looks back over the
year, taking stock of IEA accomplishments and achievements across the various parts of the Agency,
and identifying the challenges we expect to face in 2013. By taking a global view of IEA activities, we
hope to track progress toward unified goals as laid down in the Strategic Paper, and to recognise
Agency‐wide challenges.
In 2012, some of those challenges were stark. After nearly four years of economic crisis among many
IEA members, the IEA itself had avoided the worst of budget constraints thanks to stimulus
spending, and other one‐off revenue boosts and voluntary contributions. But in 2012 the crisis fully
caught up with the IEA budget, with major impacts on staffing and cost control. An overhaul of the
Agency’s structure sought to rationalise departments, and limit the numbers of both analytical and
support staff. The aim has been to work more effectively, which also means investing in the tools
and office space to do our work better and often with less. It means investing in working conditions,
office space and infrastructure that meets high standards and allows the IEA to function as a leaner,
more efficient organisation.
Methods for maximizing the impact of our work and clarifying the IEA role and international position
were reformed with a new Communications Strategy and strategic oversight by a Strategic
Communications Committee. As a result, publications and communications were streamlined, and
regular communications impact assessments were conducted – influencing how our substantive
work and external outreach were carried out. This helped to better achieve our strategic goals
within existing budget constraints.
But 2012 challenges were not only on the resources side – demand for IEA expertise was also up.
Energy issues were riding high on the global agenda following major events in 2011 like the
Fukushima‐Daiichi nuclear accident and the Arab Spring. A political cycle in several IEA member
countries also brought forward significant debates about unconventional oil and gas, economic
development and clean energy. The climate change challenge, which had languished during
the economic crisis in terms of political priority, was highlighted in 2012 by a series of extreme
weather events.
The global relevance of such issues had already made external engagement a key IEA priority, as
evidenced at the October 2011 IEA Ministerial Meeting. Our external engagement, from fostering
analytical co‐operation to political consultation at the highest levels of government, is considered
imperative not only because growth in energy demand is being driven by non‐IEA members. It is also
important because interactions among different fuels, markets and prices are intensifying on a
global scale. Our energy policies therefore cannot be set in stone ‐ and they cannot be set alone.
International energy governance cannot be dominated by the energy balances of the 1970s ‐ that is
to say, neither by a few producers and consumers, nor by such simplistic definitions of interests.
The year 2012 saw the adoption of a new IEA Global Engagement Strategy, which lays the
groundwork for intense, practical and institutionalised engagement with key partner countries. We are
striving to intensify our co‐operation with major emerging economies to ensure a global discussion
based on shared interests and goals – bringing together major consumers, major producers and
countries that are both.
International Energy Agency 2012 Annual Report
5
In 2012, the IEA helped to drive the energy agenda – and it steered it toward efficiency. The World
Energy Outlook showcased energy efficiency as its featured fuel and developed an Efficient World
Scenario for the first time. Based on the 25 policy recommendations, the IEA 25 Bright Ideas were
developed to show how people can reduce their everyday energy consumption. The IEA also plans to
add a fifth medium‐term market report to our annual series, putting efficiency on par with oil, gas,
coal and renewables. The first edition of the renewables report was published in July 2012, in
recognition of the increasing role of renewables in global energy markets. Going forward, it is time
we view energy efficiency in terms of the fuel, money and emissions it saves.
But efficiency, and how we see improvements in generation and consumption, will change with
technology. How the IEA promotes technological innovation is, like innovation itself, a moving
target. The release of Energy Technology Perspectives 2012, which looks to 2050, and the IEA Energy
Technology Network served important functions; not only in providing data and advice on
technology and technology policy, but also as a means of outreach to partner countries.
At the same time, our traditional work on energy security and fossil fuels went ahead strongly,
particularly as those markets continue to undergo fundamental change. Our analysis of
unconventional oil and gas addressed rapidly evolving market realities and forecasts, as well as the
policy conditions necessary to see those revolutions endure and spread. We stayed vigilant in terms
of emergency energy policy, keeping a close eye on Iranian sanctions, political disturbances,
technical outages and other events that could affect energy supply.
So while 2012 was a year of transition, we look forward to 2013. Many of the challenges with regard
to budget and workload will remain, but we expect to reap rewards in terms of efficiency and
effectiveness from the internal restructuring and communication changes we implemented this year.
This report of the IEA Executive Director is organised according to the IEA “4 Es” which make up our
mission:
Energy security (and markets);
Environmental sustainability (and technology);
Economic development (and forecasting);
Engagement globally.
It will also look at the functional activities we engage in to achieve those mission aims including
statistics, communication, legal, personnel, and building/IT issues.
International Energy Agency 2012 Annual Report
6
Energy Security (and Markets)
The IEA was founded in 1974 with a principal mission to improve the oil security of its members.
Since then our mission has widened, as has the definition of energy security to other fuels and
concepts. But energy security still remains a main focus of the Agency, including market analysis of
various fuels and management of emergency policy (including the co‐ordination of responses to
supply disruptions), and also adapting to the changing nature of energy security. The bulk of this
work takes place in the Energy Markets and Security Directorate (EMS).
Market analysis products include short and medium‐term outlooks, plus specific renewable energy
products such as roadmaps and databases.
In 2012 the full set of Medium‐Term
Market Reports for major energy sources
was published for the first time.
Analysing a shorter, one‐year outlook
period, the monthly Oil Market Report
(OMR) will celebrate its 30th anniversary
in 2013. Since its launch, the OMR has
expanded the breadth and depth of its
coverage, and has added a number of
new sections, including the most recent
section on oil price formation. Each
release of a new report invariably
generates a flurry of newswire headlines
and occasionally moves markets. OMR
sales bounced back in 2012, hitting well
above the 1 million EUR mark. 2012 was
a very eventful year in terms of oil
market activity, including an
unprecedented record of supply
disruptions, concerns about ripple effects
from the Arab Spring, the implementation
of enhanced international sanctions on
Iranian oil exports, wide price swings,
refinery closures and two major
hurricanes in the United States.
The IEA Renewable Energy Division (RED)
published three new Technology Roadmaps
in 2012 that cover bioenergy for heat and power, solar heating and cooling, and hydro‐power, all of
which were well received. RED will update the roadmaps on wind and solar PV in 2013. The
upgraded Renewable Energy Policies and Measures database was re‐launched through enhanced co‐
operations with IRENA.
The Medium‐Term Market Report series was
prioritised in 2012 as a key IEA publication
product, alongside the World Energy Outlook
(WEO) and Energy Technology Perspectives (ETP).
It expanded in 2012 to cover all major fuels: oil,
gas, coal and renewables. The focus on these
reports has proven to be successful, with all
reports well received and often quoted in major
trade and mainstream journals and publications – in
particular, the debut edition of the Medium‐Term
Renewable Energy Market Report. In terms of time
horizon and format, these publications are good
complements to the WEO. Their five‐year
outlook, unlike WEO forecasting, does not
generally presume policy variations or scenarios.
This series offers unique granularity in the
analysis of their respective fuels. The Medium‐
Term Oil Market Report includes detailed analysis
and forecasting of the refining market and
industry, as well as crude oil and refined product
trade flows – two sectors undergoing dramatic
change and profoundly transformed by the “new
global oil map”. In 2013, a new Energy Efficiency
Medium‐Term Market Report will be added,
underlining its importance as the “hidden fuel”.
International Energy Agency 2012 Annual Report
7
IEA emergency policy management includes
responsibilities involving both member
and non‐member countries.
2012 was a very active year in outreach
to major non‐member countries with
successful events in Delhi, Beijing and
Bangkok. The 6th Emergency Response
Exercise (ERE6) of member countries in
Paris was also a great success and saw
strong participation from non‐member
countries, including India, Indonesia,
Thailand and South Africa. In 2013, an
Emergency Response Assessment (ERA)
of India is planned and the possibility of
a regional Emergency Response Review
(ERR) in Beijing is under discussion. An
ERA of Estonia will be conducted as part
of its accession to the IEA. Emergency
Response Reviews of member countries
saw the completion of the latest five‐year
cycle in 2012 and will cap that cycle with
the Energy Supply Security publication in
2013. The latest cycle expanded beyond
oil to include gas, and introduced mid‐
term reviews to monitor progress and
guard against complacency. In 2012,
a framework for assessing electricity
emergency preparedness was developed
with the IEA Gas, Coal and Power
Division (GCP) to enable ERR to further
extend to electricity security for the
2013‐18 cycle. RED also significantly
increased its work with partner
countries, in particular China and Brazil.
The 2012 Hydropower Roadmap is the
first such IEA publication ever done in
joint effort with a partner country, Brazil.
Looking at the changing nature of energy security and its future, EMS focused in 2012 on the power
sector and the changing oil map.
Based on the mandate given by the 2011 IEA Ministerial, GCP has been working on the Electricity
Security Action Plan, a comprehensive assessment of the electricity security issues in de‐carbonising
electricity systems. This Plan covers power generation, network, market integration and demand
response, and will be presented to the 2013 IEA Ministerial. When we view electricity security issues
with de‐carbonisation from the renewable perspective, system integration issues are seen to be a
Emergency Response Exercises are a key element
of emergency preparedness, and also of energy
security policy outreach to major non‐member
countries. In 2012, the IEA Emergency Policy
Division successfully organised the biennial
Emergency Response Exercise 6 (ERE6), consisting
of a new exercise in June for experienced SEQ
delegates and Industry Advisory Board (IAB)
Members, and the main exercise in November
with some 90 delegates including 30 from
non‐member countries. The exercise allowed
participants to explore more complicated scenarios
including potentially sensitive issues and therefore
was particularly useful for addressing the
Governing Board’s June request to examine the
sufficiency of the existing emergency response
tools. The main exercise used three disruption
scenarios of increasing complexity to
progressively familiarise participants with the
various issues determining if and when to respond
to disruption. It also successfully incorporated
voting buttons to increase participant interaction
and develop learning. Both exercises received
very positive feedback from participants.
A tailored local ERE was held in May with Indian
administration and industry. The exercise, part of
the deliverables agreed under the MoU signed at
the 2011 Ministerial, helped encourage the
Indian administration to agree to an Emergency
Response Assessment (ERA) of its policies and
preparedness, scheduled for mid 2013. China is
also considering an IEA proposal for a similar
exercise or other events. A Chinese decision is
expected shortly.
International Energy Agency 2012 Annual Report
8
key requirement for rapidly expanding renewables. RED has worked on this issue by assessing the
flexibility of power systems and their capacity to integrate variable renewables with the GIVAR
Project. Phase III of this project is underway and is expected to deliver major findings to the 2013
Ministerial. In line with its commitment to constantly review and update existing energy security
measures, EMS has also been reviewing the changing requirement for oil supply security. EMS is
looking into fundamental shifts in the oil supply chain and the changing nature of oil distribution
channels, and assessing their implications for IEA emergency response systems. EMS also will work
on “resilience” issues, starting with an exercise for sharing experiences of oil disruptions caused by
major disasters such as earthquakes and hurricanes.
International Energy Agency 2012 Annual Report
9
Energy Sustainability (and Technology)
Another principal mission of the IEA is to provide policy analysis to assist member countries in
making sustainable energy choices that cost‐effectively mitigate the environmental footprint of the
energy sector and support energy security. This work is led by the IEA Sustainable Energy Policy and
Technology Directorate (SPT).
Energy efficiency was a major topic
worldwide in 2012 and was the
highlighted fuel of the World Energy
Outlook. The IEA Energy Efficiency Unit
(EEU) published two new editions in the
Policy Pathway series and three
publications on finance that show that
governments do not have to shoulder
investment costs of energy efficiency
alone, but can gain leverage from a wide
range of public‐ and private‐sector
instruments. The beginning of a major
new work stream on multiple benefits of
energy efficiency was launched with the
publication, Spreading the Net, a study of
known evaluations for the non‐energy co‐
benefits of energy efficiency. Another
important development was the launch of
the Buildings Energy Efficiency Policy
(BEEP) database. The EEU team also
began preparations for the new efficiency
addition to the Medium‐Term Market
Report series. Broadly, EEU has framed its
work flow around the IEA 25 Energy
Efficiency Policy Recommendations, which
is guided by its immediate governance
committee, the Energy Efficiency Working
Party, to ensure work remains current and
meets the real needs of governments.
The IEA analysis of energy and climate change policy design and integration informs both member
and non‐member countries. The IEA Energy and Climate Change Unit (ECC) addressed issues of
investment in 2012 with work on climate finance and energy efficiency, which included non‐member
countries. Enhanced monitoring of climate policy was undertaken with the expansion of the Policies
and Measures database and the publication Electricity in a Climate Constrained World. Two years of
collaboration by ECC with China’s Energy Research Institute (research think‐tank of the NDRC) and
the China Electricity Council led to the publication and launch of guidance for a realistic emissions
trading system for the Chinese power sector. In 2012, ECC focused on the impacts of a changing
climate on energy systems and how energy‐related sectors could enhance resilience to these
Energy Technology Perspectives (ETP) is a
principal publication of the IEA which focuses on
how technology can deliver a sustainable energy
system by 2050. It represents one of the most
comprehensive and ambitious projects worldwide
to assess the impact of developments in low‐
carbon energy technology.
ETP 2012 was released in June. In the subsequent
road show, 25 dedicated events were held in
23 countries with some 2 500 attendees in total.
A new ETP website (www.iea.org/etp) was
launched together with the publication, where all
figures and the data behind them are available
for download. A new data visualisation tool
allows users to create their own scenarios.
An external impact assessment concluded that
readers found ETP 2012 to be “a relevant, useful
and thought‐provoking insight into the world's
clean energy transformation challenge.” However,
some concerns were raised with ETP’s scope
being “too broad for policy makers who might
want more focused messages”, and with the
need to demonstrate how ETP conclusions can
be realised. As a result of this assessment, the
ETP publication will be revamped for its next
edition.
International Energy Agency 2012 Annual Report
10
impacts. A first exploratory discussion was held with representatives from the energy, manufacturing,
finance and government sectors in November 2012, which helped ECC canvas the experts on a
variety of issues to be addressed as part of improving resilience.
Yet, an important element of our approach to tackling climate change has seen a tough year in 2012.
The potential role of carbon capture and storage (CCS) is significant in any ambitious climate
scenario, providing as much as one‐fifth of the required emissions reductions. However, progress
towards deploying CCS is seriously lagging. 2012 saw some increase in CCS activity worldwide, but
policy frameworks remain largely inadequate to drive a large number of CCS facilities into the
markets in the short term. An IEA Insights paper outlining the need for additional incentive policies
to support initial CCS deployment was very well received with 7 000 downloads. And in 2012, the IEA
provided a report on CCS progress for the 3rd Clean Energy Ministerial (CEM), and also started work
to review its 2009 CCS roadmap.
Indeed, the IEA takes an active role in
many of the initiatives of the CEM. The
main input to CEM3, was the Tracking
Clean Energy Progress (TCEP) report,
released as an early excerpt of ETP 2012.
The TCEP benchmarks progress in key
clean energy technologies against the
ETP 2°C Scenario (2DS). The report received
widespread media coverage and very
positive feedback.
The IEA also released five global Energy
Technology Roadmaps in 2012
(bioenergy for heat and power, solar
heating and cooling, fuel economy for
roadmap vehicles, hydropower and high
efficiency low emissions coal power),
bringing the total to 17 roadmaps since
the programme was launched in 2009.
The success of the global roadmaps led a
number of member countries and key
partner countries to develop national
roadmaps to help accelerate the
development and deployment of important
low carbon energy technologies.
In 2012, the IEA took steps to initiate a
closer relationship between SLT and CERT in order to enhance the co‐ordination between IEA energy
technology work and the Governing Board (GB), and improve the communication flows between the
various committees.
A large number of external partnerships and
collaborations take place in the area of clean
transport. The Mobility Modelling partnership is
sponsored by 12 partners in the automotive and
oil industry to maintain and develop the ETP
transport database and model. The Global Fuel
Economy Initiative (GFEI) includes UNEP, the
International Transport Forum (ITF) and the
Federation Internationale de l’Automobile (FIA),
and supports programmes to improve global
fuel economy. The annual publication, Railway
Handbook: Energy Consumption and CO2 emissions
was launched in 2012 in partnership with The UIC
(Union Internationale des Chemins de Fer) and
will carry on for at least the next five years. The
Electric Vehicle Initiative (EVI) provides a forum
for global co‐operation on the development and
deployment of electric vehicles with a goal to
facilitate the deployment of 20 million EVs by
2020. EVI has 14 member countries from IEA
member and non‐member countries and is one
of the Clean Energy Ministerial initiatives.
International Energy Agency 2012 Annual Report
11
Economic Development (and Forecasting)
As economies grow, they typically require more energy to fuel factories and trucks, to heat and cool
buildings, and to meet growing personal demand for mobility, equipment and electrical appliances.
But just how quickly and in what way those needs are met is far from certain: experience in many
countries over the past four decades shows that the link between GDP and energy use can be
loosened, if not entirely broken, through a combination of government action and technological
advances. This highlights the importance of robust analysis of the medium‐ to longer‐term outlook
for energy demand and supply. A major pillar of the IEA response to this need is its World Energy
Outlook (WEO) series of reports, which provides the public and private sector with a framework on
which they can base their policy making, planning and investment decisions, and identify what needs
to be done to arrive at a supportable and sustainable energy future.
The WEO series, which is prepared by the IEA Directorate of Global Energy Economics (GEE), is based
around the annual publication, which sets out various policy‐driven scenarios projecting energy demand,
production, trade, investment and carbon dioxide (CO2) emissions to 2035, as well as insights into what
the scenarios mean for energy security, environmental protection and economic development. In
addition to the annual report, GEE also produces Special Reports in the WEO series on topical issues or
challenges concerning the energy sector. Furthermore, it maintains ongoing programmes of work aimed
at helping to overcome some of the major challenges facing the energy sector, including fossil fuel
subsidies and energy access. GEE founded the IEA Energy Business Council (EBC) in 2009, which serves as
its Secretariat. The EBC brings together some of the world’s largest companies involved in energy
exploration, production and consumption,
to enhance co‐operation between the
energy sector and energy policy makers.
Since its release in November 2012, the
World Energy Outlook 2012 (WEO 2012)
has been presented by senior IEA officials
at over 50 events in some 30 countries.
This has resulted in unprecedented
public attention, which has had the effect
of significantly increasing the exposure,
visibility and prestige of the IEA and its
mission. The key findings have been widely
cited by ministers and opinion leaders from
industry and NGOs, indicating that the
WEO is being actively utilised as an input
to the process of developing government
policies and business strategies. In terms
of media coverage, it has been the focus
of front‐page stories in many of the
world’s leading newspapers and featured
extensively on television, internet and
radio. It received extensive coverage in
partner countries, where it is serving as a
The IEA High Level Forum for Unconventional
Natural Gas Best Practices was established in late
2012 to share best practices in the conduct and
regulation of unconventional gas production. It will
commence with a series of workshops (the first on
22 March 2013) aimed at facilitating a targeted
international discussion on issues that are essential
to the safe and sustainable development of
unconventional natural gas resources. In addition
to workshops, there are plans to produce a
comprehensive, publicly accessible database on
the IEA website of progress in unconventional
gas developments globally, policy actions and
measures relating to unconventional gas production
and regulation, and examples of best practice in
conducting and regulating unconventional gas.
The initiative is already helping to further raise
interest in the mission of the IEA, with significant
unsolicited interest for membership coming from
partner countries and industry.
International Energy Agency 2012 Annual Report
12
“concrete” vehicle for enhancing IEA engagement. As of mid‐February 2013, sales of the WEO 2012
through the IEA Bookshop exceeded 12 000 copies, which represents an all‐time record for an IEA
publication and an increase of more than 30% compared to the same period in 2012 for WEO 2011.
In 2011, a WEO special report addressed the question of whether the world is entering a “Golden Age
of Gas.” One of the pillars of this analysis was the possibility that the world would see ample
availability of natural gas, bolstered by the development of unconventional resources. Yet, prospects
for unconventional gas production worldwide remain uncertain, not least because vocal public
concerns have been expressed about potential environmental and social impacts. In May 2012, a WEO
Special Report, Golden Rules for a Golden Age of Gas, looked in detail at these environmental and
social concerns, including serious hazards such as the potential for air pollution and contamination of
surface and groundwater. The report proved to be timely and topical, resulting in significant interest
from policy makers, regulators, operators and other stakeholders. It also received widespread
coverage in the international media, with an editorial in the New York Times calling it “required reading
for regulators and the industry – and for
anyone who cares about energy, the
environment and climate change.”
Each year, the WEO selects a particular
country or region for in‐depth analysis.
The 2012 edition focused on Iraq, marking
the first time that the IEA conducted a
comprehensive review of the energy sector
of a major OPEC member. The Iraq Energy
Outlook was produced in close co‐operation
with the federal government of Iraq, the
regional and provincial governments, and
officials across many government bodies,
including fact‐finding visits by the IEA team
to Baghdad, Erbil and Basrah. It was released
as a stand‐alone publication in October with
press launches in London and Baghdad,
the latter jointly with the Deputy Prime
Minister of Iraq, Dr. Shahristani. The
report was widely reported and received
praise from the highest levels of the Iraqi
administration: Deputy Prime Minister
Shahristani characterised it as a “highly
valued work,” a “significant reference that
will be quoted for many years to come” and
a product that will help Iraq to overcome
the difficulties it faces in developing its
energy sector. The report’s success and the
relationships fostered during its production
have opened the door to further co‐
operation with Iraq and possibly other
major producers in the future.
Time to end fossil fuel subsidies and energy poverty
The IEA continued its systematic analysis of fossil‐
fuel subsidies in 2012, a programme of work which
commenced in 1999 and is aimed at raising
awareness about their magnitude and incidence,
an essential step in building momentum for global
fossil‐fuel subsidy reform. The results of the
analysis were published in the WEO‐2012 and
featured on the IEA energy‐subsidy online
database. Throughout 2012, GEE’s fossil‐fuel
subsidy analysis continued to the subject of
significant interest, including in high‐level political
forums and in the media.
The UN Year of Sustainable Energy for All, and the
Secretary‐General’s SE4All initiative, meant that
energy access became a topic of significant focus
during 2012, particularly at the time of events such
as the Rio+20 Summit. The WEO once again
devoted a chapter to the important issue of energy
access, providing updated energy access data,
energy access projections to 2030 and estimates of
the investment needs (and implications for global
energy use and CO2 emissions) to achieve universal
energy access. It also contained special analysis on
the issue of tracking energy development over
time – including results of GEE’s newly devised
Energy Development Index – as a substantive IEA
contribution to the SE4All initiative.
International Energy Agency 2012 Annual Report
13
Engagement Globally
As the energy landscape changes, the global energy economic balance continues to shift, increasing
the importance of strengthening the IEA profile and relations with partner countries, especially key
Partners, and international organisations/fora. This work is led principally by the Office for Global
Energy Policy (GEP).
2012 saw the formation and initial
implementation of the Global Engagement
Strategy and Implementing Guidelines. In
the context of the Global Engagement
Strategy, notable bilateral co‐operation
outcomes with those key partner
countries were achieved. With China, the
IEA completed an investigation of gas
pricing and market regulation (which fed
into China’s preparation for nationwide
reforms), as well as an assessment of a
national CO2 emissions trading system
for the power sector. As mentioned
previously, the first joint Emergency
Response Exercise was held last May in
India and preparations have been
ongoing for the first‐ever India ERA (in
the framework of the MoU) on oil and
gas security co‐operation. Significant
interaction with Russia took place on gas
and energy efficiency and an agreement
was concluded on the conduct of a Russian IDR, which is now in progress. Work with Brazil was
finalised on a hydropower roadmap. Mexico hosted the How‐to‐Guide for Smart Grids in the
Distribution Networks Drafting Workshop last March. Indonesia held a 2nd workshop on carbon
capture and storage last September. And in South Africa the IEA kicked‐off the national solar energy
technology roadmap in co‐operation with several ministerial and industry players.
Meanwhile progress was also made on the accession processes of Chile and Estonia. The IEA
received strong political support from both countries during this process, including at the July 2012
public launch of the Chile Emergency Response Assessment (ERA) in Santiago and at the December
Country Review team visit to Estonia.
2012 also saw big steps taken on co‐operation with other important partner countries. The
successful launch of the Country Review of Ukraine was followed by the signing of the Biennial
Action Plan for 2013‐14. The IEA led two regional events in the Caspian Basin, including one on
Energy Policy Dialogue and another on Statistics and Indicators Training. The Ministry of Energy of
Thailand and the IEA held a workshop on oil stock building. Meanwhile, collaboration with Saudi
Arabia on energy efficiency, building standards and the transport sector was ongoing, in addition to
co‐operation on oil as part of the Producer‐Consumer Dialogue. The second annual IEA‐IEF‐OPEC
Symposium on Energy Outlooks in Riyadh was held in January 2012. In March, the 13th IEF Ministerial
Both the Global Engagement Strategy and its
related Implementing Guidelines were approved
by the IEA Governing Board in 2012 after almost
two years of discussion. Major changes to the
prior strategy include the creation of a new
category of “key partner countries”, of which
there are currently seven, increased consistency
between OECD’s enhanced engagement strategy
and that of the IEA, and introduction of uniform
agency‐wide procedures governing participation
by partner countries in almost all IEA Committees
and Working Groups. One outstanding element
of that strategy is the association initiative, which
attracted the interest and support of key partner
countries. With Governing Board approval the IEA
is currently developing procedural and substantive
proposals, which would serve as the basis for
making association a reality in the near future.
International Energy Agency 2012 Annual Report
14
was held in Kuwait. In October, at the behest of G‐20, the IEA hosted the first annual Symposium on
Gas and Coal Market Outlooks in conjunction with IEF and OPEC.
In 2012, the IEA created a new
International Partnerships and Initiatives
(IPI) unit, which seeks to strengthen the
visibility and policy relevance of the
IEA technology network, especially via
the International Low‐Carbon Energy
Technology Platform (Technology Platform)
and the Implementing Agreements.
Throughout 2012, the Technology Platform
implemented a series of projects to
disseminate the Agency’s expertise in
low‐carbon energy technologies, becoming
an essential tool for IEA engagement. In
addition to 16 international, regional and
national‐level workshops on low‐carbon
energy technologies, the Platform
initiated the development of “How2Guides”
to provide guidance on the development
of national‐level energy technology roadmaps. Key impacts of its activities last year included
strengthened interaction with Russia on road‐mapping low‐carbon technologies; successful
partnering with the ADB on the development of “How2Guides” for both Wind Energy and Smart
Grids; and advancing regional dialogue on renewable energy in the Mediterranean. Importantly, in
December, the Governing Board (GB) endorsed the continuation of the Tech Platform for a further
two years, conditional upon availability of VC funding for its activities.
Regarding the IEA 40 Implementing Agreements (IAs), 2012 saw the completion of 36 existing studies
and the initiation of a further 21 on a wide range of energy research topics, from the Life‐Cycle Analysis
of Transportation Fuels Pathways, to Barriers to the Implementation of Carbon, Capture and Storage. The
IAs also continued to give valuable input to IEA Secretariat analyses in 2012. Such contributions included
inputs to three technology roadmaps, as well as Energy Technology Perspectives 2012 and the Medium‐
Term Renewable Energy Market Report, among other IEA publications. The year saw 14 new participants
join IAs, five of which were from partner countries and one from an international organisation (ITER),
demonstrating the enhanced focus on the participation of non‐member stakeholders in the IAs.
A principal responsibility of the IEA, as required by its founding treaty, is to conduct regular Country
Reviews of the energy policies of its member countries. Seven were launched in 2012: the Slovak
Republic, Denmark, United Kingdom, Switzerland, Ireland, Australia and Korea. The IEA Country
Studies Division (CSD) was also involved in the preparation and launch of the Ukraine Country
Review. Each of these events attracted good media attention and raised the profile of the Agency in
the host country. Also, review teams visited Germany, Sweden and Finland, and CSD participated in
the review visit to Estonia. These visits will form the basis of books to be published in 2013.
There were four SLT meetings during the year and CSD made a number of changes to improve the
format and structure of the meetings. These changes will help maintain the relevance of the group
and facilitate greater engagement and discussion at the meetings.
IEA training and capacity building activities have
become more recognised and effective for engaging
partner countries. The annual Energy Training Week
and six monthly Energy Statistics Course have
continued to promote the IEA’s work and facilitate
knowledge exchange with partner and member
countries. In 2012, the IEA received over 120
applications for each of two statistics training
sessions, from which 30 participants were selected
to yield a diverse group. Also important was the
effective delivery of three international training
courses in Paris, three regional capacity building
events (Latin America, Central Asia, Eastern Europe),
and several in‐country bilateral training sessions
(Russia, India, Mexico, Vietnam, Morocco).
International Energy Agency 2012 Annual Report
15
Supporting the “4E” Missions
In order to carry out our work in achieving our 4E missions – energy security, economic
development, environmental sustainability and engagement – the IEA conducts a variety of support
activities that are vital to its success. These essential tasks include energy data management and
communications, as well as IEA specific legal and management functions.
Energy Statistics
The mission of the IEA Energy Data Centre (EDC) is to provide IEA analysts, member countries and
the broader energy community with the most comprehensive source of high quality data to assess
the energy situation among OECD member and non‐member countries on a factual basis. Over the
years, the IEA has established itself as the most authoritative reference in terms of OECD and global
energy statistics, and the objective of the Energy Data Centre is to further strengthen this position
and the role of the IEA in increasing data transparency globally. Every year, EDC publishes a series of
10 annual publications, two quarterly publications and numerous electronic data services, including
the Monthly Oil Data Service. EDC also plays a key role in the development of the Joint
Organisations Data Initiative (JODI) and other international initiatives to raise the profile and quality
of statistics worldwide.
Based on preliminary information on the
direct sales of electronic services, EDC
looks to have set a new record in 2012 in
terms of sales, which account for over
half of overall IEA publications revenues.
Those sales, as well as numerous
requests regarding the authorisation to
use or quote IEA statistics, confirm the
strategic importance of IEA statistics in
supporting work both in‐house and
among analysts globally.
In line with the OECD free data policy, EDC has been working on three complementary axes for
facilitating free access to IEA statistics ‐ a more user‐friendly statistics web page, an App for the Key
World Energy Statistics (KWES) booklet and a Sankey flow representation of its energy balances. The
IEA will continue to charge for its value‐added electronic services and has been very active in 2012
developing better tools to access its statistics.
In order to maintain its leadership on international energy statistics, the IEA is constantly
strengthening its links with regional and international organisations (UNSD, APEC, Eurostat, IEF,
OLADE, OPEC), as well as with key non‐OECD member countries such as China, India and Russia. It is
also instrumental in the development of the JODI initiative. In 2012 JODI began expanding to natural
gas and the IEA was central to a meeting in Doha that led to the development of a world JODI Gas
database to be made accessible to participating countries in early 2013.
Also in 2012, EDC made a special effort to work with the African Energy Commission (AFREC) in the
development of energy statistics for Africa, paving the way to the preparation of a first‐ever pan
African energy statistics database and publication.
Reducing the statistics reporting burden was a
major aim in 2012. EDC made great progress on its
two‐pronged strategy: harmonisation of the
questionnaires among the main international
organisations in order to reduce duplication of work
(the InterEnerStat initiative), and more powerful
tools (Energy Data Management Centre) to assist
countries in reporting their statistics through the
internet.
International Energy Agency 2012 Annual Report
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Communications
For the work and analysis of the IEA to have impact, it must be communicated effectively – from
local interviews and small‐group presentations to major conferences, press releases, publications, an
online presence and commentary in the international press. The IEA Communications and
Information Office (CIO) advises the Executive Office on communication strategy and priorities, co‐
ordinating across the Agency to raise the profile of the IEA and its work with policy makers and other
key target audiences, while ensuring that consistent messages are conveyed with maximum impact.
Its aim is to promote the broadest dissemination of IEA work, while finding ways to cut costs and
increase revenues.
In 2012, CIO fully implemented a new communications strategy to identify the Agency’s communication
priorities, and to ensure that these were effectively reflected in output and messaging. The list of
proposed official publications was streamlined to focus on quality over quantity. Efforts were made
to align launches with appropriate high‐level media events (e.g. launch of the gas report at the
World Gas Conference 2012) with support from web and social media.
We have already started to see the results. Press coverage has reached record‐high levels and our
media‐tracking tools show that news coverage of the IEA rose by about 13% in 2012, from 2011. In
2011, coverage doubled from the previous year, so sustained attention is now being devoted to the
IEA. The Press Office also succeeded in drafting and placing opinion pieces by the Executive Director
in key global publications, including The Guardian newspaper and The Huffington Post. The two
issues of the IEA Energy journal highlighted renewable energy and oil, featured Agency analysts and
their expertise, commentary from such leaders in their fields as the Saudi Arabian Oil Minister, Ali Al‐
Naimi, and IRENA Director General, Adnan Amin, as well as high‐level industry officials, including
Petrobras President Maria Das Gracas Silva Foster and Vestas CEO Ditlev Engel.
Our online and multimedia strategy also
moved forward with the launch of the
revamped www.iea.org and increased
use of social media channels. The new
website was launched in June 2012 and
had risen to over 3.5 million page views
with over 1 million visits of which 700,000
were unique (number of individual visitors)
by the end of the year. The biggest spike
in traffic came the day after the launch
of WEO 2012 with 106 452 page views
(highest ever).
2012 has seen a bumper year in the
Bookshop, led by sales of WEO 2012
which in the first two months surpassed
all WEO 2011 sales. Provisional 2012
Bookshop results indicate that sales were strong last year, only slightly below the 2008 peak before
the global financial crisis. The top selling titles of 2012 were: World Energy Outlook 2012; Energy
Technology Perspectives 2012; Medium‐Term Gas Market Report 2012; Medium‐Term Renewable
Social media has become an important channel
for the IEA to actively promote its work and
messages. The IEA Twitter account is among the
OECD’s most popular with 16,000 followers and
11,000 new followers added in 2012. One of CIO’s
key objectives has been to develop more
effective ways to measure impact and make this
information available to all staff Once a month,
CIO now produces an impact assessment report
on the intranet that covers sales, downloads, visits,
press mentions, social media mentions and growth.
A summary will soon be included in the IEA
monthly newsletter.
International Energy Agency 2012 Annual Report
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Energy Market Report 2012; and, Medium‐Term Oil Market Report 2012. CIO administers the OMR
subscriptions which increased in 2012 by 10%.
Overall, the IEA published 67 books in 2012. In keeping with the new communications strategy, CIO
reduced the number of unofficial Insight papers to ten, down from 38 in 2011. This has allowed the
Publications Unit to produce more books for sale (ETP, more Country Review and four Medium‐Term
Market Reports). It has also allowed the IEA to improve the quality of more sought‐after free official
publications. These include four Roadmaps, two Policy Pathways, two Partner Country reviews and
three other papers, including Tracking Clean Energy Progress for the CEM.
Legal and Support Work
In terms of internal institutional support, the IEA Office of the Legal Counsel (OLC) served its
traditional role in 2012 during four GB meetings providing organisation and secretariat services –
including the oversight of an election process for a vice‐chair. It also advanced the projects to
improve the IEA website terms and conditions, and security guidelines, taking into account global
best practice. With regard to office space, it assisted in the management of the IEA lease, including
supporting BLD on lease‐related issues and dialogue with the IEA landlord.
OLC also supports the institution in external relations. It is facilitating Estonia’s accession by
overseeing the legal aspects of that process, and in 2012 provided legal and drafting support to the
implementation of Memoranda of Understanding (MOUs) and Letters of Intent. Those included the
LOI with IRENA and MOUs with the UNFCCC, World Business Council for Sustainable Development
(WBCSD), and the Russian Energy Forecasting Agency/Federal Grid Company.
OLC also supports IEA revenue generation and financial agreements. A principal responsibility is
providing legal support in relation to the negotiation and approval of VC/grant agreements. It also
provides such support (including drafting and negotiating contracts) in relation to joint and multi‐
party collaborative projects, which in 2012 included the Global Electric Vehicle Insight Exchange
(EVX) case book and joint database, Nordic ETP, IEA/IRENA joint database, Railways Handbook with
UIC, and collaboration with the Russian Biotechnology Society on the How2Guide for Bioenergy.
With regard to IEA internal management, OLC drafted and negotiated procurement contracts,
including assisting ISD and BLD to implement new contracts with printing machine and telephony
suppliers at better rates.
Finally, OLC works to support the IEA revenue stream from publications. In 2012, it designed a Global
Corporate Licence for IEA Energy Data and IEA publications, like WEO and ETP, which enables
greater use of IEA products by multinational customers, enhancing their impact and increasing
revenue generation. In the same vein, it assisted EDC with legal aspects necessary to launch its Key
World Energy Statistics application on the AppStore. And it supported OIMD to finalise a
subscription agreement for oil price data from Argus.
All items listed in the PoW 2012 for OLC were successfully completed. In addition, many instructions
outside of the PoW 2012 were taken on and processed. OLC processed 369 matters for external
parties in 2012 (versus 302 in 2011).
Personnel, Building and IT Support
Following the restructuring of the Agency in early 2012, the thrust of internal reforms moved to
practical issues with the creation of a regular Administrative and Management Meeting (AMM) to
International Energy Agency 2012 Annual Report
18
address such vital questions as, how does our working environment reflect the needs and priorities
of the Agency, and also its new structure? Budget and space constraints, and increasing demand for
IEA work means that the Agency often has to do more with less. That starts with rationalising
departments and limiting numbers of both analyst and support staff. But it also means investing in
the tools and workspace to do our work more effectively, such as up‐to‐date information technology
(IT) solutions and support, modern working spaces, and infrastructure which meet high standards.
Support work in terms of personnel, IT and building services had to cope with a series of extra‐
ordinary challenges in 2012, in addition to providing ongoing services.
The year began with most staff working from home as the tainted ventilation system for our
premises underwent extensive professional cleaning. That posed a complex logistical challenge from
both an IT and building management perspective. In mid‐2012, the entire SPT Directorate moved
into new offices at the Carré Suffren building near the IEA. That step released sufficient office space
in IEA headquarters to enable the regrouping of a number of divisions and directorates into single
locations, greatly improving efficiency.
IT managers have had to cope with increased needs for security, while at the same time rolling out
new tools such as Microsoft Sharepoint and increasing remote access to IEA databases.
In terms of personnel, 2012 saw an unusually high turnover across the IEA – particularly among
management with some sections (such as EMS) particularly hard‐hit. Filling those positions, including
a new IEA Legal Counsel, two Directors, and several Division Heads, proved challenging.
In 2013, a new Chief Management Officer (CMO) will join the IEA to oversee and consolidate such
support work, which has been grouped into a single Office of Management Affairs (OMA) with
separate unites for finance, buildings, IT and HR issues.
International Energy Agency 2012 Annual Report
19
Acronyms
2DS 2°C Scenario
AFREC African Energy Commission
AMM Administrative and Management Meeting
APEC Asia‐Pacific Economic Cooperation
BEEP Buildings Energy Efficiency Policy
BLD Building Services Division
CCS Carbon Capture and Storage
CEM Clean Energy Ministerial
CERT Committee on Energy Research and Technology
CIO Communication and Information Office
CMO Chief Management Officer
CO2 Carbon dioxide
CSD Country Studies Division
EBC Energy Business Council
ECC Energy and Climate Change Unit
EDC Energy Data Centre
EEU Energy Efficiency Unit
EMS Energy Markets and Security Directorate
EPD Emergency Policy Division
ERA Emergency Response Assessment
ERE Emergency Response Exercise
ERR Emergency Response Review
ETP Energy Technology Perspectives
EVI Electric Vehicle Initiative
EVX Global Electric Vehicle Insight Exchange
FIA Federation Internationale de l’Automobile
G20 Group of 20 Major Economies
GB Governing Board
GCP Gas Coal and Power Division
GEE Global Energy Economics Directorate
GEP Office for Global Economic Policy
GFEI Global Fuel Economy Initiative
GIVAR Grid Integration and Variability Project
IA Implementing Agreement
IAB Industry Advisory Board
IDR In‐Depth Review
IEA International Energy Agency
IEF International Energy Forum
IPI International Partnerships and Initiatives Unit
IRENA International Renewable Energy Agency
ISD Information Systems Division
IT Information technology
ITER International Thermonuclear Experimental Reactor
International Energy Agency 2012 Annual Report
20
ITF International Transport Forum
JODI Joint Organisations Data Initiative
KWES Key World Energy Statistics
LoI Letter of Intent
MoU Memorandum of Understanding
NMC Non‐member country
OECD Organisation for Economic Cooperation and Development
OIMD Oil Information and Markets Division
OLADE Latin American Energy Organization
OLC Office of the Legal Counsel
OMA Office of Management Affairs
OPEC Organisation of Petroleum Exporting Countries
PFD Personnel and Finance Division
PoW Programme of Work
PV Photovoltaics
RED Renewable Energy Division
SCC Strategic Communications Committee
SE4All Sustainable Energy for All
SEQ Standing Group on Emergency Questions
SLG Strategic Leadership Group
SLT Standing Group on Long‐Term Cooperation
SPT Sustainable Energy Policy and Technology Directorate
TCEP Tracking Clean Energy Progress Report
UIC Union Internationale des Chemins de Fer
UNEP United Nations Environment Programme
UNFCCC United Nations Framework Convention on ClimateChange
UNSD United Nations Statistics Division
VC Voluntary Contribution
WBCSD World Business Council for Sustainable Development
WEO World Energy Outlook
ZNG Zero nominal growth
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