IEA ministers focus on energy security, efficiency measures

IEA ministers focus on energy security, efficiency measures

London (Platts)--3May2005


The international community can achieve a secure and sustainable energy supply
through energy efficiency measures, reducing reliance on imports and turning
from fossil fuels to alternative sources of energy, the International Energy
Agency said Tuesday. In a communique to ministers on its governing board at a
meeting in Paris, IEA said persistently high energy prices were a significant
threat to security of oil, gas and electricity supplies. High prices were a
"drag" on economic activity and growth, and penalize the poor, it said. 

In the oil sector, the IEA said it was less concerned about speculation than
the need for "timely investment and sufficient stocks to absorb unpredictable
yet inevitable surprises." And it said it is also opposed to price subsidies
and barriers to investment, which it said distort markets and impose capacity
restraints. Producers and consumers continue to face the challenge of securing
investment.

The IEA estimates that the energy sector will need $16-trillion by 2030, but
it said there was underinvestment in power generation and transmission, and in
the up and down stream oil and gas sectors. Still, the IEA said it was
convinced market forces would provide the right signals for investment in open
markets. 

The IEA also presented its "Alternative scenario" on climate change,
which said that by implementing policies its members are now reviewing, IEA
consumption of fossil fuels could be cut by 10% and CO2 emissions by 16% by
2030 below the Kyoto reference scenario. "End use efficiency would contribute
60% of this," it said. "The rest would be realized by better power generation
using clean coal technologies, more gas and renewables and nuclear power in
those countries having chosen nuclear power as an option." The IEA called on
its members to commit to reinforcing their efforts on energy efficiency. And
it asked them to commit to mobilizing strong financial and policy support for
alternative zero-carbon fuels.

This story was originally published in Platts European Power Alert
http://www.europeanpoweralert.platts.com

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