Electricity Information 2005

I E A

S T A T I S T I C SI N T E R N AT I O N A L E N E R G Y A G E N C Y

2005

ELECTRICITYINFORMATION

ELECTRICITY INFORMATION (2005 Edition) - iii

TABLE OF CONTENTS

INTRODUCTION.............................................................................................................................. vii PART I WORLD ELECTRICITY DEVELOPMENTS1.1.1 1.2 1.3 1.4

Summary ........................................................I.3Production........................................................... I.3 Consumption....................................................... I.4 Trade................................................................... I.4 OECD Prices....................................................... I.4 3. 3.1 3.2 3.3 3.4

2.2.5 - Heat Production Sold to Third Parties ... I.11 OECD Consumption ....................................... I.13 Electricity Consumption .................................... I.13 Sectoral Consumption of Electricity .................. I.13 Heat Consumption ............................................ I.14 Market Shares .................................................. I.14

2.

Production and Installed Capacity...............I.5

2.1 OECD Production and Installed Capacity ........... I.5 2.1.1 - Hydroelectric Power................................. I.6 2.1.2 - Nuclear Power .................................. I.6 2.1.3 - Geothermal, Solar, Tide, Wave and Wind Power ............................................ I.6 2.1.4 - Combustible Fuels ................................... I.8 Coal............................................................... I.8 Oil ................................................................. I.8 Gas ................................................................ I.9 Combustible Renewables. and Wastes .......... I.9 2.1.5 - Heat Production Sold to Third Parties...... I.9 2.1.6 - Direct Use of Heat................................. I.10

4.

Electricity Trade...........................................I.17

4.1 OECD Electricity Trade..................................... I.17 4.2 Non-OECD Electricity Trade ............................. I.17

5.

OECD Prices ................................................I.19

5.1 Electricity Prices for Industry ............................ I.19 5.2 Electricity Prices for Households ...................... I.20 5.3 Prices of Competing Fuels................................ I.20

6.

Trends in the OECD Electricity Sector ......I.21

2.2 Non-OECD Production ..................................I.102.2.1 - Hydroelectric Power............................... I.10 2.2.2 - Nuclear Power ....................................... I.10 2.2.3 - Geothermal, Solar, Tide, Wave and Wind Power........................................... I.10 2.2.4 - Combustible Fuels ................................. I.11 Coal ....................................................... I.11 Oil.......................................................... I.11 Gas ........................................................ I.11

6.1 Energy and Electricity Intensity......................... I.21 6.2 Electricity Production ........................................ I.22

7.7.1 7.2 7.3 7.4

Saving Electricity in a Hurry .......................I.23Executive Summary .......................................... I.23 Who Needs this Book and When? ................... I.25 Vignettes of Power Shortfalls............................ I.27 Conclusions ...................................................... I.27

INTERNATIONAL ENERGY AGENCY

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PART ITables:1. 2 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44.

LIST OF TABLES AND FIGURES

OECD Electricity production, imports, exports, apparent consumption, 2004 (TWh) .........................................I.31 Electricity production, imports, exports, final consumption, 2003 (TWh) ............................................................I.32 OECD Gross electricity production, by country, by fuel, 2004 (TWh) .................................................................I.36 OECD Gross electricity production from combustible fuels, by country, 2004 (TWh).........................................I.37 OECD Gross heat production from combustible fuels, by country, 2004 (PJ) ....................................................I.38 Gross electricity production, by country, by fuel, 2003 (TWh) ............................................................................I.39 Gross electricity production from combustible fuels, by country, 2003 (TWh) ....................................................I.43 Gross heat production from combustible fuels, by country 2003 (PJ).................................................................I.47 Fuel use for electricity and heat production, by country, 2003 (PJ) ....................................................................I.50 Electricity production and consumption, OECD, 1973 - 2003 (TWh)..................................................................I.54 Net maximum electricity capacity in public plants, OECD, by fuel, 1974 - 2003 (GW) .......................................I.55 Electricity generation and heat sold, OECD, 1974 - 2003...................................................................................I.56 Electricity production from combustible fuels in electricity plants, OECD, 1980 - 2003 ......................................I.57 Electricity and heat produced for sale from combustible fuels in CHP plants, OECD,1980 2003....................I.58 Heat produced for sale from combustible fuels in heat plants, OECD, 1980 2003 ..........................................I.59 IEA Electricity generating capacity, 1974 - 2003 (GW).......................................................................................I.60 OECD Electricity consumption, by country, 1960 - 2003 (TWh) .........................................................................I.62 Electricity consumption, OECD, by sector, 1973 - 2003 (TWh) ..........................................................................I.63 Electricity consumption, OECD, by industry, 1973 - 2003 (TWh) ......................................................................I.63 OECD Final consumption of heat, by country, 1980 - 2003 (Mtoe).....................................................................I.64 Final consumption of heat, OECD, by sector, 1980 - 2003 (per cent of total).....................................................I.65 Share of final consumption, OECD, by fuel, by sector, 2003 (per cent of total)..................................................I.65 Final consumption, OECD, by fuel, by sector, average annual rate of growth (%), 1960 - 1973 ........................I.66 Final consumption, OECD, by fuel, by sector, average annual rate of growth (%), 1973 - 2003 ........................I.66 OECD Total electricity imports, by country, 1960 - 2004 (GWh).........................................................................I.67 OECD Total electricity exports, by country, 1960 - 2004 (GWh).........................................................................I.68 Electricity trade, 1960 - 2003 (GWh)...................................................................................................................I.69 OECD: Indices of real energy prices for end-users.............................................................................................I.70 USA: Indices of real energy prices for end-users................................................................................................I.71 OECD-Europe: Indices of real energy prices for end-users................................................................................I.72 Japan: Indices of real energy prices for end-users .............................................................................................I.73 Electricity prices for industry in US dollars/kWh..................................................................................................I.74 Electricity prices for industry in US dollars/toe ....................................................................................................I.74 Electricity prices for households in US dollars/kWh............................................................................................I.75 Electricity prices for households in US dollars/toe ..............................................................................................I.75 Electricity prices for households in US dollars/kWh, converted with purchasing power parities.........................I.76 Purchasing power parities, national currency/US dollars....................................................................................I.76 Heavy fuel oil prices for electricity generation in US dollars/tonne .....................................................................I.77 Heavy fuel oil prices for electricity generation in US dollars/toe .........................................................................I.77 Steam coal prices for electricity generation in US dollars/tonne.........................................................................I.78 Steam coal prices for electricity generation in US dollars/toe.............................................................................I.78 7 Natural gas prices for electricity generation in US dollars/10 kcal, gross calorific value basis..........................I.79 Natural gas prices for electricity generation in US dollars/toe, net calorific value basis .....................................I.79 US dollar exchange rates in national currencies.................................................................................................I.80

Figures:1. 2. 3. 4. Indices of real energy end-use prices, OECD.....................................................................................................I.81 Indices of real energy end-use prices, Japan .....................................................................................................I.81 Indices or real energy end-use prices, United States .........................................................................................I.82 Indices of real energy end-use prices, OECD Europe ........................................................................................I.82

World electricity and energy production.....................................................................................................................I.83 Electricity production by fuel, by country ............................................................................................................ I.84-I.89


ELECTRICITY INFORMATION (2005 Edition) - v

PART II OECD ELECTRICITY DATADirectory of Part II Tables ...................................II.3 1. Principles and Definitions ...........................II.5 I II III IV V VI 2. 3. 4. General Notes..........................................II.5 Data Sources .......................................... II.5 Units and Conversions ...........................II.6 Notes on Energy Sources and Flows .....II.7 Price Data .............................................II.10 Quarterly Energy Statistics ...................II.12 Canada ..............................................................II.200 Czech Republic .................................................II.218 Denmark ............................................................II.237 Finland...............................................................II.256 France ...............................................................II.275 Germany............................................................II.294 Greece...............................................................II.312 Hungary .............................................................II.330 Iceland...............................................................II.349 Ireland ...............................................................II.364 Italy....................................................................II.381 Japan.................................................................II.398 Korea .................................................................II.414 Luxembourg.......................................................II.431 Mexico ...............................................................II.449 Netherlands .......................................................II.465 New Zealand .....................................................II.483 Norway ..............................................................II.498 Poland ...............................................................II.517 Portugal .............................................................II.536 Slovak Republic.................................................II.554 Spain .................................................................II.573 Sweden .............................................................II.591 Switzerland ........................................................II.610 Turkey................................................................II.627 United Kingdom.................................................II.644 United States.....................................................II.663

Geographical Coverage ............................II.13 Country Notes ............................................II.15 Conversion Factors ...................................II.29

Country Specific Net Calorific Values .................II.30 OECD Total .........................................................II.36 OECD North America ..........................................II.50 OECD/IEA Pacific ...............................................II.64 OECD Europe .....................................................II.76 IEA Total..............................................................II.90 IEA North America.............................................II.104 IEA Europe ........................................................II.118 European Union - 15 .........................................II.132 Australia ............................................................II.146 Austria ...............................................................II.162 Belgium .............................................................II.181


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Units and Technical Abbreviationst Mt toe Mtoe kW kWh MW MWh GW GWh TW TWh kcal KJ GJ TJ GCV NCV TFC TPES $ .. e c x : : : : : : : : : : : : : : : : : : : : : : : : : metric ton = tonne (1 t = 1000 kg) million tonnes tonne of oil equivalent (1 toe = 41.868 GJ = 107 kCal) million tonnes of oil equivalent kilowatt (103 watts) kilowatt hour Megawatt (electric) (106 watts) Megawatt hour Gigawatt (109 watts) Gigawatt hour (1 GWh = 3.6 TJ) Terawatt (1012 watts) Terawatt hour (1 TWh = 3.6 PJ) kilocalories (103 calories) kilojoule (103 joules) Gigajoule (109 joules) Terajoule (1012 joules) Gross Calorific Value Net Calorific Value Total Final Consumption Total Primary Energy Supply U.S. dollars (unless otherwise specified) not available estimated or preliminary data confidential data not applicable


ELECTRICITY INFORMATION (2005 Edition) - vii

INTRODUCTIONIEA Electricity Information 2005 is the latest edition of an annual publication intended to provide sound market information on electricity and heat to policy and market analysts, and those employed in all sectors of the electricity industry. This monitoring and reporting of historical trends and current energy market situation provides a strong foundation for policy and market analysis, to better inform the policy decision process toward selecting policy instruments that are best suited to meet domestic and/or international objectives. IEA Electricity Information 2005 brings together in one volume the basic statistics compiled by the IEA on electricity and heat production. It also includes information on installed capacity, consumption, trade and prices. Part I of the publication provides a statistical overview of developments in the markets for electricity and heat in the OECD 30 Member countries, as well as input fuel prices, end-user electricity prices in US dollars and corresponding exchange rates used. Part I also includes some non-OECD countries statistics on electricity production, imports and exports and heat production. In a context of often tight supply/demand electricity market, and the challenge of dealing with temporary shortfalls in electricity supplies, Part I of this edition of the Electricity Information will also acquaint the reader with IEAs analysis of strategies and measures for Saving Electricity in a Hurry. Part II provides, in tabular form, a more detailed and comprehensive picture of the power and heat industry developments for OECD 30 Member countries. In addition, calorific values used for preparing national energy balances are presented. Documentation at the front of Part II provides important information that will assist the reader in correctly using the data in this publication. This information is structured as follow: 1. Principles and Definitions I II III IV V VI General Notes Data Sources Units and Conversions Notes on Energy Sources Price Data Quarterly Statistics

2. Geographical Coverage 3. Country Notes 4. Conversion Factors OECD data are taken from IEA/OECD databases of Energy Statistics that are based on annual submissions from OECD Member countries to the Secretariat. The Energy Statistics Division of the IEA Secretariat works closely with national administrations to secure consistency in time series and with IEA product definitions and reporting conventions. The finalized data provide the basis for IEA/OECD Energy Balances of OECD Countries and Energy Statistics of OECD Countries. Price data in Part I are derived from IEA/OECD Energy Prices and Taxes. Readers should consult this publication for detailed information on data coverage and sources. The non-OECD data are based upon information collected by the IEA Secretariat, national submissions to the United Nations in Geneva and New York, and national energy publications. The resulting synthesis is published in Energy Balances of Non-OECD Countries and Energy Statistics of Non-


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OECD Countries. Users of this publication are directed to the Methodology Section of those publications for more detail on individual non-Member countries covered in the publication. All of Part II tables and selected tables from Part I are available on CD-ROM. Information on ordering CD-ROM and other energy statistics publications is available at the end of this book, and on the IEA website at http//www.iea.org. In addition, a data service is available on the internet. It includes unlimited access through an annual subscription as well as the possibility to obtain data on a pay-per-view basis. Details are available at http://data.iea.org. Further information on reporting methodologies is also available on the IEA Web site. Annual energy data are collected by the Energy Statistics Division (ESD) of the IEA Secretariat, headed by Mr. Jean-Yves Garnier. OECD electricity statistics in ESD were the responsibility of Mr. Antonio

Di Cecca. Mr. Michel Francoeur had overall responsibility for this publication. Also in the IEA Secretariat, thanks are due to the non-OECD Member countries section headed by Mr. Riccardo Quercioli, to the OECD Balances section headed by Ms. Karen Tranton, and to Mr. Alan Meier for his contribution to Part I of the publication. Editorial and secretarial support from Ms. Sharon Burghgraeve and Ms. Susan Stolarow is also gratefully acknowledged. Enquiries, comments and suggestions are welcome and should be addressed to: Michel Francoeur or Antonio Di Cecca Energy Statistics Division International Energy Agency 9, rue de la Fdration, 75739 Paris Cedex 15, France Tel: (33 1) 40 57 66 31 or 40 57 66 47 Fax: (33 1) 40 57 66 49 E-mail: [email protected]


ELECTRICITY INFORMATION (2005 Edition) PART I - I.1

PART IWORLD ELECTRICITY DEVELOPMENTS



1 SUMMARY1.1 ProductionBetween 1973 and 2003, world electricity production has increased from 6124 TWh to 16742 TWh. The average annual growth rate during that time span is 3.4%. In 1973, 72.9% of electricity production was in countries that are currently members of the OECD. In 2003, 59.4% of electricity production was in OECD countries. The increase of electricity production share of NonOECD countries reflects the higher average growth rate which has prevailed since 1973. In the last 30 years, electricity production has increased at an annual rate of 4.8% in Non-OECD countries while in OECD countries the annual growth rate during the same period is 2.7% In 2003, 66% of world electricity production was from generating plants burning fossil fuel. Hydro plants provided 16.3%, nuclear plants 15.7%, combustible renewables and waste 1.2%, and geothermal, solar, wind, etc. 0.8% (Table 6). World heat production which was sold to third parties reached 12044 PJ in 2003, an increase of 2.3% from the level reported in 2002. up of 61.0% from fossil-fuel-fired plants and 1.7% from combustible renewables and waste plants) and geothermal, solar and wind plants 1.1% (Table 3). In 2003, total OECD heat production which was sold to third parties by main activity producers and autoproducers was 2396 PJ, an increase of 5.1% from 2002 (Table 12). Nearly 79% of this heat (1891 PJ) was produced in CHP plants, 21% (505 PJ) in heat plants. About 20% of the reported 2003 world heat production was in OECD member countries.

Non-OECD ProductionWhile there are no complete statistics available on electricity production in all Non-OECD countries for 2004, data are available for 2003. Gross electricity production in 2003 in Non-OECD countries was 6804 TWh, an increase of 7.8% from the 2002 level (Table 2). OECD electricity production in 2003 increased 1.1% from the level reported in 2002. In 2003, 72.4% of Non-OECD electricity production was generated from fossil fuels, 20.7% was provided by hydro plants, 6.1% by nuclear plants and 0.8% by combustible renewables and waste and by geothermal/solar/wind capacity (Table 6). In 2003 total Non-OECD heat production which was sold to third parties was around 9647 PJan increase of 1.6% from the 2002 reported level. Over 80% of the heat production reported in 2003 for the world was in Non-OECD countries.

OECD ProductionGross electricity production in 2004 in the OECD (including generation from pumped storage plants) was 10129 TWh, a rise of 1.9% from the level of gross production in 2003 (Tables 1 and 2). Nuclear plants accounted for 22.9% of total gross electricity production in 2004, hydroelectric plants 13.3%, total combustible fuel1 plants 62.7% (made1. Combustible fuels refer to fuel that are capable of igniting or burning, i.e. reacting with oxygen to produce a significant rise in

temperature. Fuels included are: coal and coal products, oil and oil products, natural gas and combustible renewables and waste including solid biomass and animal products, gas/liquids from biomass, industrial waste and municipal waste.


I.4 - ELECTRICITY INFORMATION (2005 Edition) PART I

1.2 ConsumptionOECD ConsumptionBased on preliminary data, 2004 apparent consumption of electricity (gross production plus imports less exports) in the OECD was 10145 TWh. The corresponding figure for 2003 was 9957 TWh, indicating a rise of 1.9% in apparent electricity consumption in OECD countries in 2004. In 2003 final consumption, which is equal to production and imports less exports, own use, other use, transmission losses and energy sector consumption, was 8473 TWh (Table 2). This represents an increase of 1.3% in final consumption compared to 2002.

countries) and exported almost 354 TWh (including to other OECD countries). Accordingly, net imports of electricity in 2003 amounted to 18.4 TWh. In 2004, preliminary data suggest that OECD countries imported nearly 365 TWh, and exported over 349 TWh, resulting in net imports of 15.9 TWh to OECD countries.

Non-OECD TradeIn 2003, Non-OECD countries imported nearly 173 TWh and exported almost 195 TWh. The resulting net exports amounted to 22 TWh.

Non-OECD ConsumptionIn 2003, final consumption in Non-OECD countries reached 5192 TWh, compared to 4798 TWh in 2002. This represents an increase of 8.2% for NonOECD final consumption in 2003.

1.4 OECD PricesAverage real electricity price (as measured by the indices of real energy prices) in the OECD decreased by 1.0% in 2004 from its 2003 levels. Where prices for industry decreased a modest 0.7%, prices for households decreased 1.2%. Electricity prices for industrial consumers vary widely across OECD countries. Based on data that are available for 2004, prices varied from 4.3 US cents per kWh in Norway to 10.0 US cents per kWh in Turkey. In 2004, the average industry price for OECD was 5.7 US cents per kWh. Electricity prices for residential consumers also vary widely across OECD countries. Based on data that are available for 2004, prices varied from 6.9 US cents per kWh in Norway to 28.3 US cents per kWh in Denmark. In 2004, the average household price for OECD was 10.2 US cents per kWh.

1.3 TradeOften, countries use electricity trade as a balancing item when reporting electricity flows. This leads to some distortion of import and export data. In addition, the transmission and distribution line loss between net importers and net exporters is difficult to determine. Both of these factors lead to the differences between reported net imports for OECD countries and reported net exports for Non-OECD countries.

OECD TradeOECD countries imported nearly 372 TWh of electricity in 2003 (including from other OECD



2. PRODUCTION AND INSTALLED CAPACITY2.1 OECD Production and Installed CapacityBy convention, the reported value for electricity generation is the amount of gross production less the amount of electricity generated in pumped storage plants. On this basis, 2003 OECD electricity generated was 9863 TWh and gross electricity production was 9938 TWh (Table 10). Total available electricity supplied in OECD countries in 2003 was 9396 TWh. In deriving this figure, total gross electricity production (9938 TWh) is adjusted to take into account electricity used within power stations for their own use (459 TWh) to determine net production (9480 TWh). Use for heat pumps (2.2 TWh), electric boilers (2.0 TWh), pumped storage (97.6 TWh) and exports (353.5 TWh) is deducted; supply of imports (371.9 TWh) is added. Data for OECD for selected years covering the period 1973 to 2003 are shown in Table 10 where the statistics of the production of electricity from pumped storage stations are also included. In 2003, the OECD countries reported 2352 GW of total installed capacity: 1574 GW of plants fired by fossil and other combustible fuels, 313 GW nuclear power, 421 GW hydroelectric power (including pumped storage capacity) and 43 GW of solar, wind, geothermal and tide/wave/ocean capacity (Table 11). The data in Table 11 show the growth in total electricity generating capacity that was installed since 1974. Total electricity capacity increased in the OECD at an average annual rate of 3.4% between 1974 and 1990, and at 2.5% between 1990 and 2003. Nuclear, hydroelectric and combustible fuel capacity increased in these two periods by 10.6%, 4.6% and 2.1% respectively, and 1.3%, 1.0% and 3.1% respectively. The growth of total capacity additions has slowed since 1990. The level of total capacity increased in 2003 compared to 2002 by 3.6%. This is partly attributable to economic evolution, which has resulted in growth of less energy intensive service industries. The OECD-wide pattern of electric power capacity and production conceals large differences between countries. These differences reflect different resource endowments and economics of electricity generation as well as different policy approaches between countries. Data on the growth and type of installed capacity in individual OECD countries and regions are reported in detail in Table 18 in Part II of this report. The fuel used in individual OECD countries in the production of electricity is illustrated in the graphs which follow the tables in this section. Main activity producers refers to entities whose primary activity is to generate electricity and/or heat for supply to third parties. Autoproducers are entities that generate electricity and/or heat, wholly or partly for their own use as an activity that supports their primary activity. Electricity can be produced in two types of plants; those that are designed to generate electricity only and those that generate both electricity and heat simultaneously. The latter plants are combined heat and power plants (CHP or co-generation plants). (For statistical purposes, if one or more units of a plant is a CHP unit, then the whole plant is designated as a CHP plant). Both types of plants can be



operated by main activity producers and autoproducers. Available data on electricity and heat production by autoproducers in the OECD is summarised in Table 12. Data on electricity and heat production, and installed capacity of autoproducers in individual OECD countries are summarised in the individual country sections of Part II in Tables 4, 5, 7 and 18. Data on autoproducers are now available for all OECD countries from 19932 The growth of electricity production and of heat sold to third parties by autoproducers in OECD countries between 1974 and 2003 is shown in Table 12.

1980s, 2 and 10 GW per year in the 1990s and 0 and 8 GW between 2000 and 2003. Since the peak in 1985, however, annual additions have declined sharply and fewer orders have been placed. The level of nuclear capacity declined in 1998 by 4 GW for the first time since IEA began collecting data. Although after 1999 nuclear capacity began increasing again, in 2003 the level of nuclear capacity marginally declined by 1 GW. Of the 17 OECD countries with nuclear production, the share of nuclear electricity of total gross production exceeded 40% in five countries in 2004. The average share for the 17 countries was over 26% with values as high as 78.3% in France, 56.1% in the Slovak Republic and 56.0% in Belgium (Table 3). In 2003 total nuclear power capacity in the OECD was 313 GW and accounted for about 13 % of generating capacity (Table 11).

2.1.1 Hydroelectric PowerHydroelectric plants produced 1344 TWh, or over 13% of total gross production in the OECD in 2004, the same share as in 2003 (1317 TWh accounting for 13.3% of total gross production) (Tables 3 and 6). The OECDs hydroelectric development is fairly matured so suitable and environmentally acceptable sites are increasingly difficult to locate and would yield lower load factors than the capacity in place. Many of the civil works associated with existing capacity (waterways, tunnels, conduits) have been developed, maintained or replaced over the last century. As a result, growth of the OECDs hydroelectric capacity was below the average since 1990. In 2003, total3 OECD hydroelectric capacity was 421 GW and accounted for 17.9% of net maximum installed electric capacity in the OECD.

2.1.3 Geothermal, Solar, Tide, Wave and Wind PowerIn 2004, geothermal power stations produced 34 TWh and other renewable energy sources (solar, tide, wave, wind) produced 80 TWh of electricity in OECD countries (Table 3). Production of geothermal electricity has increased 5.7% annually between 1973 and 2003 (Table 10). In 2004, geothermal generation slightly increased by 0.3%. Production of electricity from wind sources has also expanded significantly since the mid-1980s, increasing from 0.1 TWh in 1985 to 76.0 TWh in 2004. Wind generation increased over 30% in 2004 compared to 2003. Data on electricity production from solar sources in OECD became available in 1983; in 2004 production was 1.3 TWh which is an increase of 19.1% compared to 2003. Production from tide and wave power has slightly increased to 0.6 TWh since the early 1970s. Production from other sources was 2.1 TWh in 2004, an increase of about 9% with respect to 2003. OECD countries reported about 43 GW of geothermal and other non-combustible renewable energy sources (solar, wave, tide, wind and other sources) electricity capacity in 2003. There was an increase of 21.1% in this type of capacity in 2003 compared to 2002. Wind generation capacity experienced the strongest growth adding 7.1 GW to capacity in 2003, an increase of almost 25% compared to 2002. The historical data on capacities are presented in Table 18 in Part II for individual countries where available.

2.1.2 Nuclear PowerNuclear power stations in OECD produced 2317 TWh of electricity in 2004 accounting for 22.9% of total gross electricity production, 0.5% below the 2003 level (2223 TWh accounting for 23.4% of total gross production) (Tables 3 and 6). OECD nuclear electricity production increased at an average annual rate of 8.6% between 1973 and 2003 (Table 10). This growth reflected new capacity additions at an annual rate of between 7 and 14 GW per year in the 1970s, 6 and 25 GW per year in the2. It should be noted that the breakdown of capacity into single and multi-fired plants is not available for all countries. 3. Main activity producers and autoproducers reported for IEA countries and Iceland



IEA Definitions for Electricity and HeatData reported to the IEA in annual questionnaires provide information on the fuel requirements for, and the production of electricity and heat according to producer and generating plant types.

Types of Producer : Producers are classified according to the purpose of production : Main activity producers generate electricity and/or heat for sale to third parties, as their primary activity. They may be privately or publicly owned. Note that the sale need not take place through the public grid. Autoproducers generate electricity and/or heat, wholly or partly for their own use as an activity which supports their primary activity. They may be privately or publicly owned.

Types of Plant : Data on fuel use and electricity/heat generation statistics are separated according to the type of plant (i.e. electricity (only), heat (only) or combined electricity and heat) are normally collected at the plant level, i.e. generating stations comprising one or more generating sets or units.

Electricity Only refers to a plant which is designed to produce electricity only. If one or more units of the plant is a CHP unit (see below) then the whole plant is designated as a CHP plant. Combined Heat and Power (CHP) refers to a plant which is designed to produce both heat and electricity. It is sometimes referred to as co-generation power stations. If possible, fuel inputs and electricity/heat outputs should be reported on a unit basis rather than on a plant basis. However, if data are not available on a unit basis, the convention for defining a CHP plant noted above should be adopted Heat Only refers to a plant which is designed to produce heat only. Heat delivered from CHP or Heat Only plants may be used for process or space heating purposes in any sector of economic activity including the Residential Sector. It should be noted that: Electricity production reported for Autoproducer Electricity or Autoproducer CHP is the total quantity of electricity generated. All heat production from Main Activity Producer CHP, Main Activity Producer Heat plants and Heat from Chemical Processes (as a primary energy form) should be reported. However, other heat production reported for Autoproducer CHP and Autoproducer Heat plants should comprises only the heat sold to third parties. Heat consumed by autoproducers should not be included.



Measuring the generating capacity of renewablepowered plants can be relatively simple, as in the case of geothermal plants, or difficult in the case of photovoltaic, wind and wave plants. In the latter cases, units tend to be quite small - ranging from a few kilowatts to at most 4 MW - and they are often installed by non-utility (end-user or independent) generators. Data on output are less readily available than those on capacity. The prospects for power generation from more intermittent renewable sources, especially wind, have improved as costs have declined and technology improved. The contribution from such sources will depend on their degree of dispersion geographically, the mix of energy sources and the generation flexibility of the rest of the system. Electric utilities have indicated that up to 10 to 15% of electricity generation from dispersed, intermittent sources could be managed easily, but generation beyond that share could affect system reliability.

installed capacity between single fuel-fired and multi fuel-fired plants, in plants using combustible fuels are also shown in Table 11. Data for individual OECD countries for 2003 are reported in Table 18 in Part II. However, as data are not reported for all OECD countries from 1982, total OECD capacity separated as single and multi-fired plants is unavailable. Although the share of electricity produced from combustible fuels to total electricity production has remained fairly stable since 1960, the pattern of fuel used in electricity generation has varied greatly in the last 30 years in electricity and CHP plants (Tables 13 and 14). Comprehensive 2004 data for all OECD countries on combustible fuels used for electricity generation are unavailable at the time of going to press. For this reason the following discussion of electricity production in coal, oil and gas-fired plants refers to 2003, the latest available year for disaggregated data. These data are presented in Table 13 for plants that produce electricity only, in Table 14 for CHP plants and in Table 15 for heat plants. Electricity capacity of main activity producer and autoproducer plants for historical years and 2003 for combustible fuel-fired plants are shown in Table 16 where available.

2.1.4

Combustible Fuels

In 2004, electricity production from power plants that use combustible fuels (including fossil fuels and combustible renewables and wastes in both electricity and CHP plants) was 6354 TWh and accounted for 62.7% of total gross electricity produced in OECD countries (Table 3). The contribution of individual fossil and combustible renewables and wastes to gross electricity production is detailed in Table 4 for 2004 and Table 7 for 2003. In 1973, combustible fuel power plants produced 3346 TWh and accounted for 74.9% of total gross electricity produced. In the period 1973 to 1990, electricity production from combustible fuels increased more slowly than total gross production; 1.9% compared to 3.2%. However, in the period 1990 to 2003 electricity production from combustible fuels increased at a 2.4% annual rate, slightly faster than the 2.1% rate for total electricity production (Table 10). Electricity production from combustible fuels began growing faster as nuclear capacity additions began to slow after 1985. The growth in total installed capacity using combustible fuels is shown in Table 11. In the period 1974 to 1990 capacity increased at an average annual rate of 2.1%, and between 1990 and 2003 increased at an annual average rate of 3.1%. Data reported to the OECD from member countries on the distribution of

CoalHard coal is the leading source of electric power generation in the OECD. In 2003, hard coal-fired electricity and CHP stations produced in total 3170 TWh of electricity, contributing 50.3% of combustible fuel-fired or 31.9% of total gross OECD electricity production (Table 7). Electricity production from all coal sources, including peat and coal derived gases, reached 3843 TWh in 2003, representing about 39% of total gross OECD electricity production. IEA coal-fired capacity in 2003 was 531 GW or 23.5% of total IEA capacity (Table 16). The capacity data should be viewed with caution since a large group of the IEA countries (Canada, Czech Republic, France, Germany, Japan, Norway, Spain, The Netherlands and Sweden) did not submit the breakdown of combustible fuels by fuel type.

OilIn 2003 liquid fuel-fired (including refinery gas) electricity and CHP plants produced 561 TWh of



electricity, contributing 8.9% of combustible fuelfired or 5.6% of total gross electricity production in the OECD (Table 7). Oil-fired capacity in 2003 was 137.7 GW or 6.1% of total IEA capacity (Table 16). The capacity data should be viewed with caution since a large group of the IEA countries (Canada, Czech Republic, France, Germany, Japan, Norway, Spain, The Netherlands and Sweden) did not submit the breakdown of combustible fuels by fuel type.

GasIn 2003 gas-fired (including gas works gas) electricity and CHP plants produced 1728 TWh of electricity, contributing 27.4% of combustible fuel-fired or 17.4% of total gross electricity production in the OECD (Table 7). Gas-fired capacity in 2003 was 615 GW or 27.1% of total IEA capacity (Table 16). The capacity data should be viewed with caution since a large group of the IEA countries (Canada, Czech Republic, France, Germany, Japan, Norway, Spain, The Netherlands and Sweden) did not submit the breakdown of combustible fuels by fuel type.

tricity production (Table 6). Electricity production from Combustible Renewables and Waste has increased most rapidly since 1992, when efforts to reduce CO2 emissions from fossil fuels were formalised. Data on generating capacity from Combustible Renewables and Waste for IEA countries are reported in Table 16. Capacity in 2003 was about 22 GW, representing about 1% of total IEA capacity. The capacity data should be viewed with caution since a large group of the IEA countries (Canada, Czech Republic, France, Germany, Japan, Norway, Spain, The Netherlands and Sweden) did not submit the breakdown of combustible fuels by fuel type.

2.1.5

Heat Production Sold to Third Parties

Combustible Renewables and WasteThis category of fuels, referred to as Combustible Renewables and Waste, comprises the non-fossil fuels that can be combusted (i.e. combined with oxygen) to produce heat, which can be used directly or converted to steam for electricity generation. The category has been divided into four sub-categories: solid biomass and animal products, industrial waste, municipal waste, and gases derived from biomass and wastes. The individual fuels that fall into these sub-categories are listed in the section Principles and Definitions at the beginning of Part II. In recent years, the available data on the use of these fuels for electricity generation has increased, particularly in the European Union as a result of the Renewable Energy Statistics (RES) project managed by Eurostat. The rapid development of statistics in this area causes some data revisions from one year to the next and this results in major breaks in series between years as new data series begin to be collected and reported to the IEA. Analysis of trends in the use of these fuels must take into account these statistical difficulties. In 2003, Combustible Renewables and Waste were used to produce over 169 TWh of electricity or about 2.7% of OECD production using combustible fuels. This amounted to 1.7% of OECD gross elec-

In OECD countries (as in other market economies) data collected on heat production are generally confined to main activity producer undertakings, i.e. undertakings whose primary activity is to generate energy for public consumption. Data on heat produced by autoproducers relate only to the quantity of heat produced for sale to third parties. The quantity of heat produced and consumed by autoproducers for their own use is not generally measured, although the fuel used to produce the heat is generally measured and available. Austria, Denmark, Finland, Iceland, Ireland Japan, Norway, Slovak Republic and Sweden report some small quantities of heat produced from heat pumps and electric boilers. Austria, Finland, Iceland, Japan, Norway, Slovak Republic and Sweden report heat produced by electric boilers and Denmark, Finland, Ireland, Norway and Sweden report heat produced by heat pumps. The term district heat refers to a particular end-use market for heat. Heat produced and distributed for district heating and other purposes can be produced in CHP plants or in plants designed to only produce heat (called here Heat Plants). In 2003 total OECD heat production that is sold to third parties by main activity producers and autoproducers was 2396 PJ (Table 12). Almost 79% of this heat (1891 PJ) was produced in CHP plants and over 21% (505 PJ) in heat plants. In recent years increasing concern about environmental effects of energy use has led to policies encouraging the development and use of new technologies that increase the efficiency of electricity and heat production. Reflecting such policies and other economic and social factors, large scale main activity producer CHP systems have been built in



some member countries. In many cases the heat produced in these CHP plants is sold for district heating. Previously CHP systems tended to be confined to small scale applications in industry. An unpublished IEA study on Combined Heat and Power (CHP), based on a survey of member country policies toward CHP, indicates that many member countries are anticipating significant increases in the penetration of CHP and hence in heat production and distribution, through to the end of the decade.

Direct use of solar/geothermal heat was nearly 284 PJ in 2003, an increase of 6.7% from the level of 266 PJ reported in 2002. Almost 55% of the direct heat was produced by geothermal sources and over 45% by solar sources.

2.2 Non-OECD ProductionGross electricity production in 2003 in Non-OECD countries (including generation from pumped storage plants) was 6804 TWh, an increase of 7.8% from the level reported in 2002 (Table 2). Gross production by Non-OECD countries has increased in the last 30 years at an average annual rate of 4.8%. Non-OECD countries share of world electricity production has increased from 27.1% in 1973 to nearly 40.6% in 2003. Combustible fuels supplied the largest share of NonOECD electricity in 2003 with 72.9% of the total (consisting of 72.4% of fossil fuel generation and 0.5% of combustible renewables and waste generation). Hydro provided 20.7% of production, nuclear plants provided 6.1% of production and geothermal, solar, wind, etc. provided the remainder.

2.1.6 Direct Use of HeatThe direct use refers to the use of an energy carrier in its primary form at the point of production; this is separate and additional from heat sold to third parties which is generally transported via a heating network. Heat is used directly in final consumption sectors (residential, industry, commercial and public service etc.). It should be noted that the data on direct use of heat are included in total final consumption in Table 20 but are not included in heat production sold to third parties in Table 6 and Table 5 in Part II. At the present time data on direct use of heat are reported by 27 countries. These data are summarised in the following table:2003 Direct Use of Solar/Geothermal Heat in OECD in TJAustralia Austria Belgium Denmark Finland France Germany Greece Hungary Iceland Ireland Italy Japan Korea Luxembourg Mexico Netherlands New Zealand Poland Portugal Slovak Republic Spain Sweden Switzerland Turkey United Kingdom United States Total Geothermal 0 358 48 0 0 5 400 5 100 48 3 308 26 255 2 9 091 9 544 16 0 0 0 19 480 311 42 53 321 0 4 978 32 818 33 39 988 157 194 Solar 3 738 3 297 104 337 10 801 8 872 4 388 76 0 9 450 26 602 1 378 4 2 763 674 0 0 850 0 1 876 199 943 14 651 829 53 993 e 126 844 Total 3 738 3 655 152 337 10 6 201 13 972 4 436 3 384 26 255 11 9 541 36 146 1 394 4 2 763 674 19 480 311 892 53 2 197 199 5 921 47 469 862 93 981 e 284 038

2.2.1 Hydroelectric PowerHydroelectric plants produced 1408 TWh or 20.7% of total gross production reported for Non-OECD countries in 2003 (Table 6). This represents a 2.6% increase over the 1373 TWh reported for 2002. Hydro production reported by Non-OECD countries has increased at an annual average rate of 4.6% since 1973.

2.2.2 Nuclear PowerNuclear power plants produced 412 TWh or 6.1% of total gross production reported for Non-OECD countries for 2003 (Table 6). Nuclear generation rose by 7.1% compared to 2002. The level of nuclear generation in Non-OECD countries expanded very rapidly through 1991, then slowed noticeably in the mid-1990s and increased again in the late 1990s. Strong growth was achieved in 2003. The share of nuclear contributing to electricity production has remained about 6.0% since 1994.

2.2.3 Geothermal, Solar, Tide, Wave and Wind PowerExcluding hydro, non-combustible renewable energy represents only a fraction of total electricity



production in Non-OECD countries. In 2003, about 26 TWh, or 0.4% of total reported electricity production was provided by geothermal, solar, tide, wave and wind power facilities (Table 6). This is comparable to the 1.0% contributed by noncombustible renewables to OECD electricity production. However, at 96 TWh, OECD production from these sources is almost four times higher in absolute value. Production from geothermal sources increased by 1.0% in 2003 and the contribution from wind sources increased by 30.4% compared to 2002.

OilIn 2003, liquid fuel-fired (including refinery gas) electricity plants produced 590 TWh of electricity, which was 11.9% of generation from combustible fuels and 8.7% of total gross generation (Table 7). Electricity from oil has become less important in Non-OECD countries over time, even though it has remained in the 600 TWh range for the past ten years. In 1973, oil provided 23.2% of gross electricity supply, but its share has declined gradually since then.

Gas

2.2.4

Combustible Fuels

In 2003, electricity production from power plants that use combustible fuels (including fossil fuels and combustible renewables and waste) was 4957 TWh. Combustible fuels comprised, by far, the largest component of Non-OECD countries gross electricity production. The proportion supplied by these sources in 2003 was 72.9% of total production (Table 6). Generation from these sources has increased at an average annual rate of 4.6% since 1973 - slightly less than the 4.8% average growth rate for electricity production over that time frame. Under these circumstances, combustible fuels will remain a very important component of Non-OECD electricity production.

In 2003 gas-fired (including gas works gas) electricity plants produced 1497 TWh of electricity, which represented 30.2% of combustible fuels and 22.0% of total gross electricity production (Table 7). Generation with gas increased 8.7% in 2003 from its 2002 level. The proportion of electricity produced with gas has remained fairly constant in the 20% to 22% range for the last ten years, indicating that gas generation is growing at about the same rate as total generation.

2.2.5

Heat Production Sold to Third Parties

CoalAs with the OECD countries, hard coal is the leading source of electricity production in Non-OECD countries. In 2003, hard coal-fired power plants provided 2623 TWh of gross electricity production, or 38.5% of total production (Table 7). Hard coal generation increased by strong 12.3% from its 2002 level. Hard coal generation in Non-OECD countries has increased at an average annual rate of 5.0% since 1973 keeping the pace with the rate of total generation growth. Electricity production from all coal sources, including brown coal, peat and coal gases, was 2834 TWh in 2003, and comprised 41.6% of total gross electricity production. Other non-fossil solid fuels provided 31.2 TWh of electricity production in 2003. Production from these sources comprises 0.5% of total supply, and they increased by 18.6% from 2002 level.

In 2003 total Non-OECD heat production that is sold to third parties by main activity producers and autoproducers was 9647 PJ, an increase of 1.6% from 2002 level. About 99.7% of this heat was produced by burning combustible fuels (Table 8). The remainder, 0.3%, was provided by nuclear, heat pumps, electric boilers, solar and other resources. Please note that Table 8 does not show a complete breakdown of the heat production by fuel due to a lack of information for several non-OECD countries, mainly in Europe. By far the largest component of heat is produced from natural gas. In 2003, 5202 PJ, or 53.9% of total heat sold came from natural gas. Reported heat production with natural gas increased by 2.9% in 2003 from 2002 level. The second largest component of heat sold to third parties is produced from coal. Heat produced from hard coal reached 2715 PJ, brown coal heat production reached 659 PJ, production from peat was 9 PJ and production from coal gases was 145 PJ. Combined, these solid fossil fuels provided 36.6% of



heat production in 2003. Heat production from hard coal has increased in the late 1990s, however heat production from brown coal and peat has declined sharply. Heat production from oil reached 764 PJ in 2003, which was 7.9% of total heat production. This represented a decrease of 2.6% from its 2002 level.

The remaining significant source of combustible fuel used to produce heat for sale to third parties is non-fossil fuels like biomass, industrial and municipal wastes and other solid animal products and biogases. Heat produced from these sources was nearly 129 PJ in 2003, a decrease of 6.2% from the 2002 level. Combustible renewables and waste provided 1.3% of total heat production in 2003.



3. OECD CONSUMPTION3.1 Electricity ConsumptionBased on preliminary data, apparent consumption of electricity (gross production plus imports less exports) in OECD in 2004 was 10145 TWh (Table 1), an increase of 1.9% in apparent electricity consumption from the 2003 level (9957 TWh). Detailed information on observed electricity consumption for the OECD in 2004 is unavailable at the time of going to print. OECD electricity consumption for 2003, and for selected earlier years, is shown in Tables 10 and 17. Electricity final consumption refers to electricity production plus imports less exports less electricity used at power stations (own use) less electricity used for pumped storage, heat pumps and electric boilers, less transmission and distribution losses, less energy sector consumption. Accordingly, final electricity consumption is significantly lower than apparent consumption data reported above. Electricity consumption in the OECD has grown from 3886 TWh in 1973 to 8726 TWh in 2003 (Table 18). Between 1973 and 2003 electricity consumption increased at an average annual rate of 2.7% per year. The rate of growth in electricity consumption varies widely among OECD countries. Between 1960 and 1973 the annual average rate of growth of electricity consumption exceeded 10% in Denmark, Greece, Iceland, Japan, Spain and Turkey. Since 1973 the growth in electricity consumption has slowed considerably with only Korea experiencing a growth rate above 10% and only Mexico, Portugal and Turkey experiencing growth rates above 5% per year (Table 17).

3.2 Sectoral Consumption of ElectricityMuch of the growth in electricity consumption in the OECD since 1973 has taken place in the residential and commercial / public service sectors. The share of total consumption of the residential and commercial/public service sectors combined increased from 46.5% in 1973 to 58.0% in 2003 (Table 18). Although the amount of electricity consumed in the industry sector has increased from 1836 TWh in 1973 to 3215 TWh in 2003 (Table 18), its share of total electricity consumption in the OECD has fallen from 47.2% in 1973 to 36.8% in 2003. The transport (rail) and agriculture (mainly irrigation pumps) sectors are relatively small consumers of electricity. Although industry is the most significant end-use sector for electricity consumption, growth rates over 30 years have been the lowest of the major sectors. This is the result of low rates of economic growth, structural change and improvements in efficiency in energy intensive manufacturing and processing industries. In the OECD, between 2002 and 2003, electricity consumption in the industry sector increased by modest 0.4%. In 2003, a decline of over 4% was observed for mining and quarrying sector. Electricity consumption also declined moderately in the chemical and petrochemical industry and in non-metallic minerals and wood and wood products sectors. Electricity consumption increased or remained at the same level in all other industry sectors during the same time period (Table 19). These data for the OECD as a whole conceal important regional differences that are shown in Table 13 for separate OECD regions in Part II of this report.



3.3 Heat ConsumptionHeat consumption in the OECD was 2061 PJ in 2003, which was a 5.4% increase from 1956 PJ in 2002 (Table 20). About 79% of the OECDs heat consumption occurs in Europe, mainly in Germany, Poland and the Scandinavian countries which account for 84% of the OECDs reported heat consumption in 1980 and 54% in 2003. Heat consumption has declined in Poland, Canada, Hungary and Germany as older heat plants have been closed and replaced with decentralised heat in some areas. Growth has been particularly strong in the United Kingdom, Portugal, Austria, Iceland, Denmark and Japan. Poland, Hungary, France and Germany have all experienced declining reported heat consumption in the 1990s. In the UK, there was no heat consumption reported between 1991 and 1998. A break in series related to US autoproducers, which are included from 1991, also distorts OECD heat consumption totals. These data do not refer to the consumption of heat produced in industrial undertakings or service industries for their own use. In this section heat consumption refers to heat sold to third parties by both main activity producers and autoproducers. In 2003, about 46% of third party heat consumed in OECD countries was used in the residential sector (Table 21), about 35% in the industrial and 16% in the commercial/public services sector. The remaining 3% of heat consumed in 2003 was used in other sectors of the economy.

waste 3.2% (118 Mtoe), and geothermal and solar 0.2% (6.6 Mtoe). Electricity plays an important part in the industry, residential and commercial/public service sectors. These three sectors account for almost 95% of electricity consumption (Table 18). In the transport sector over 97% of final energy is consumed in the form of oil and petroleum products, however, electricity competes with petroleum products in transport in the rail sector and to support the operations of both submarine and overland pipelines. Similarly in agriculture, about 77% of final energy is consumed in the form of oil and petroleum products; however electricity holds an 11% share of final consumption, which is higher than the share held by natural gas (7.2%). Although 36.8% of electricity consumed in 2003 was in the industry sector (Table 18), electricity held only 24.8% of final energy consumption in this sector (Table 22). Electricitys main competitors in the industry sector are petroleum products and natural gas, with 31.1% and 27.3% shares respectively, and coal and other combustible renewables combined which held a share of 15.3%. In the commercial/public service sector (which accounts for 27.5% of electricity consumption in 2003) (Table 18), electricity use dominates other fuel use. Electricitys share in 2003 was 47.5% of the total final energy consumption in this sector compared to gas share of 29.5% and petroleum products 19.5% share (Table 22). Heat contributed about 1.8% of final energy in the sector in 2003 in the OECD as a whole. In the residential sector in OECD countries, the shares of fuel and electricity use are divided quite differently. In 2003 natural gas dominated demand in this sector with a 38.7% market share. Electricity held a 31.5% share and petroleum products held a 17.6% share. Coal and combustible renewables and waste held about an 8.4% share of this sectors energy consumption. This is in sharp contrast to the 1.6% share held by combustible solid fuels in the commercial sector. Heats share of total final consumption in OECD countries, amounting to about 49.2 Mtoe, was 1.3% in 2003 (Table 22). The trends in growth of final energy consumption in end-use markets in the OECD between 1960 and

3.4 Market SharesAlthough electricity has certain unique uses it also competes with other fuels in many end-use markets throughout the economies of OECD countries. The pattern of use is shown in Table 22 in which the share of electricity, heat and other fuels, in total final energy consumption in 2003 in the OECD region as a whole is reported for the major economic sectors. In 2003, 19.4% (729 Mtoe) of total final consumption of energy in the OECD countries was met by electricity and about 1.3% (49 Mtoe) by heat. Crude oil and petroleum products held a 52.7% share of final consumption (1977 Mtoe), natural gas 19.9% (747 Mtoe), coal 3.4% (127 Mtoe), combustible renewables and



1973, and between 1973 and 2003 are shown in Tables 23 and 24. Between 1960 and 1973 electricity consumption in end-use markets grew at an average annual rate of 7.8% (Table 23). The rate of growth declined significantly between 1973 and 2003 to 2.6% (Table 24). Over both periods electricity consumption growth significantly, exceeded the growth in total final energy consumption, thereby increasing the share of electricity in total final energy consumption. In the industry sector over the period 1960 to 1973, the increased use of petroleum products, natural gas and electricity displaced coal and to a lesser extent combustible renewables and waste. Over this period, total final consumption in this sector increased by an average annual rate of about 5.0% (Table 23). However, despite total final consumption in the industry sector decreasing at an average annual rate of about 0.1% from 1973 to 2003, electricity consumption continued to grow, averaging an annual rate of growth of about 1.7% between 1973 and 2003, compared to about 6.6% in the period 1960 to 1973.

Since 1960 the fastest growing market for electricity has been the commercial/public service sector. Final energy consumption of electricity in this sector increased at an average annual rate of 10.0% between 1960 and 1973, and at 3.9% between 1973 and 2003. This compares to annual average growth rates for petroleum products in final consumption of 10.6% and a decline over the period 1973 to 2003 of 1.8%; for natural gas, the annual average growth rate in this sector was of 7.6% between 1960 and 1973 and of 1.8% between 1973 and 2003. Electricity has also substantially increased its market share of the residential sector. Averaged over the period since 1960, electricity consumption in this sector has grown at almost twice the annual average rate of consumption of natural gas. Between 1960 and 1973 electricity and petroleum products replaced coal in end-use, and between 1973 and 2003 heat, combustible renewable fuels, natural gas and electricity replaced both coal and petroleum products in the residential sector.



4. ELECTRICITY TRADETransfers of electricity between utilities in neighbouring regions have been common for many years. Exchanges based on differences in natural production costs between regions are economically efficient, and fluctuations in load can be balanced by exchanges with neighbouring utilities with different load profiles. Such exchanges reduce the overall reserve margins needed by diversifying the potential sources of supply. Surplus capacity in a neighbouring region can result not only from simple differences in load timing but also from differences in climate, economic structure, or the timing of forced and scheduled unit outages. Trade also plays an important role in the electricity sectors fuel mix. annually between 1973 and 1990, and the growth rate decreased to 2.3% between 1990 and 2003.

4.2 Non-OECD Electricity TradeWhen considered as a single entity, Non-OECD countries were net exporters of electricity. In 2003, these countries reported electricity imports of 172.9 TWh and electricity exports of 194.9 TWh, resulting in net exports of 22.0 TWh. In Europe, there is a substantial electricity trade between Russia, Lithuania, Ukraine, Estonia and other countries of the former Soviet Union. These countries export significant quantities of electricity to net importing countries such as Belarus, Moldova, Latvia and Georgia; as well as to countries in central and western Europe. Further, Non-OECD Europe became a net exporter to western Europe for the first time in 1997, and maintained that role through 1999. However, in 2000, Non-OECD Europe was a net importer of electricity. In 2001 Non-OECD Europe become a net exporter again but net exports continued a pattern of decline which began in 1999. In South America, electricity produced by large hydro projects in Paraguay is exported to Brazil and Argentina. In 2003, net exports by Paraguay were 45.2 TWh, an increase of 8.1% over the 2002 level (41.8 TWh). In Africa, there is a significant trade in the southern portion of the continent. There, South Africa and Zambia export a significant amount of power to Zimbabwe. Mozambique, which has been a net electricity importer, became a net exporter in 1998 as a new hydro project was placed into service. However in 2003, net exports from Mozambique and Zambia

4.1 OECD Electricity TradeOECD countries imported 365 TWh of electricity in 2004 (including from other OECD countries) and exported 349 TWh (including to other OECD countries). Accordingly, net imports of electricity in 2004 amounted nearly to 16 TWh (Table 1). OECD imports of electricity grew from about 87.7 TWh in 1973 to 365.0 TWh in 2004 (Table 25). OECD exports of electricity grew from about 81.4 TWh in 1973 to 349.1 TWh in 2004 (Table 26). Total imports increased at average annual rate of 4.7% between 1973 and 2004. Exports grew at average annual rate of growth of 4.8% over the same period. Substantial trade in electricity occurs in OECD Europe - principally between OECD countries, and in North America. In OECD Europe, electricity imports grew at an average annual rate of about 7.0% between 1973 and 1990, but slowed to a rate of nearly 3.1% annually after 1990. (Table 27). In OECD North America, total imports increased by 4.5%



were 5.9 TWh, a decrease of almost 26% from the 2002 level (7.9 TWh). China exports electricity from nuclear and hydro plants in the south to Hong Kong. In 2003, China had net exports of 7.4 TWh.

In Asia, electricity produced by hydro projects in Bhutan is exported to India. In 2003, exports from other Asia, which includes Bhutan to mainly India, were over 2.2 TWh, an increase of 3.3% on the 2002 level.



5. OECD PRICESReal electricity prices in the OECD as a whole, as measured by the OECD index of energy prices for end-users4 (Table 28 and Figure 1), rose strongly in the late 1970s and early 1980s, levelled off between 1982 and 1985; and declined steadily until 1989. Between 1989 and 1999, average real prices in the OECD as a whole declined at an average rate of 1.7% per annum, but increased by 3.7%, for the first time in over a decade, in 2001. Between 2001 and 2004, the price index has remained relatively flat, (apart from a rise of 2.4% in 2003 from the 2002 level), suggesting almost no change in average real electricity price. Specific producer and consumer price indices are based on 2000=100. In 2004 OECD average real electricity price decreased for industry by 0.7% and for households by 1.1% which results in the overall price decreasing by 1.0% The pattern of relative price trends in the OECD as a whole since 1985 masks different trends in the different OECD regions. In the United States (Table 29), electricity prices declined from 1985 in line with a decline of real coal and gas prices. Oil prices also dropped sharply from 1985, but moved in a more volatile pattern than coal and gas prices. Electricity prices reached a low point in 1999, and began moving upward until 2001, decreasing of 2.4% in 2002. Electricity price has remained virtually flat in 2003 and 2004. In 2004, real electricity price for industry declined 0.9%, and real electricity price for households decreased 0.1%, yielding an overall average decline of 0.4% for all sectors. Electricity prices have remained flat in the United States in recent past years despite a strong upward movement of gas prices since 1999. In contrast to the fall in electricity price in the United States, which tracked price declines of input fuels, electricity prices in Europe (Table 30 and Figure 3) did not track the fall in oil, natural gas and coal prices that occurred after 1986; but remained on an upward trend through 1992. Electricity prices in Europe began a downward slide after 1993 which continued through 2000. Since 2000, average real electricity price has resumed a moderate upward course. In 2004, real electricity price for industry remained at the same level as 2003, and for households decreased by 2.1%; yielding an average total rate decrease of 1.3% for all sectors. In Japan (Table 31 and Figure 2) electricity prices declined steadily from 1985 through the early 2000s, except in 1992, 1993 and 1998, when the Japanese average real electricity prices increased by 0.5%. Although the rate of decrease has been as modest, it has also been persistent. In 2001 electricity prices increased by 1% and started to decline again from 2002 to 2004. In 2004, real electricity price for industry decreased by 1.7% and for households by 0.5%, yielding an average total rate decrease of 1.1% for all sectors.

4. Real price indices are the current price indices divided by the country specific producer price index for industrial prices, and by the consumer price index for the household sector. See Principles and Definitions at the beginning of Part II for further details on methods used

5.1 Electricity Prices for IndustryIn 2003, average electricity prices in US dollars for industrial consumers (in countries for which data are



available) increased in OECD Europe and in total OECD (Table 32). The increase for the OECD Europe was 23.7% and for the OECD total was 15.0%. Changes in prices measured in local currencies may be quite different since the direct effect of exchange rate changes with the US dollar is not incorporated. Data on prices in local currencies are published quarterly in Energy Prices & Taxes and are shown in Part II of this book for individual countries. At the time of going to press data were not yet available for some countries; hence reported average price data for 2004, for OECD and OECD Europe as a region, can not be calculated. Electricity prices for industrial consumers vary widely across OECD countries. Based on data that are available for 2004, prices varied from a low of 4.3 US cents per kWh in Norway to a high of 10.0 US cents per kWh in Turkey. Electricity prices for industry are also reported in Table 33 in terms of US dollars per tonne of oil equivalent to allow for comparison with other fuels.

5.3 Prices of Competing FuelsHeavy fuel oil, steam coal and natural gas are the main fuels used in the production of electricity in power plants that use combustible fuels. Prices paid for these fuels in OECD Member countries since 1978 are shown in Tables 38 to 43. In 2004, prices for heavy fuel oil varied (for those countries for which data are available) between US$167 per tonne in Czech Republic to US$346 per tonne in Turkey. In 2003, heavy fuel oil prices increased in all the twelve countries that reported data. Also in 2004, prices rose in every country. In 2003, the last year for which complete data are available, average heavy fuel oil price for the OECD increased 21.4% from US$162 per tonne to US$197 per tonne. Steam coal prices for electricity generation varied from US$25.90 per tonne in Turkey to US$72.46 per tonne in Belgium in 2004. The variations in prices reflect, in part, the degree to which domestic supply costs differ from international market prices and the relative importance of domestic supply sources as well as transport costs from supply sources to end use markets. Steam coal prices increased in every country reporting data for 2004. In 2003, the last year for which complete data are available, average steam coal price for the OECD increased 1.8% from US$30.68 per tonne to US$31.23 per tonne. Natural gas prices (reported in gross calorific value) also varied between OECD countries; ranging from US$145.56 per 107 kcal in Finland to US$251.36 per 107 kcal in Hungary in 2004. Prices increased in every country for which data were reported in 2004. In 2003, the last year for which complete data are available, average natural gas price for the OECD increased 45.2% from US$138.75 per 107 kcal to US$201.47 per 107 kcal. In addition to reporting data in nominal US dollars per physical unit, data are shown in nominal US dollars per tonne of oil equivalent (toe) expressed on a net calorific value basis. This allows price comparisons to be made between fuels on an equivalent energy content basis.

5.2 Electricity Prices for HouseholdsIn 2003, electricity prices in US dollars for household consumers (in countries for which data are available), increased for OECD Europe by 21.9% and for the whole OECD by 11.0% (Table 34). Complete data for 2004 for OECD as a whole are not yet available, but in countries where data are available, the price increased in nineteen countries and fell in one country. Electricity prices for household consumers also vary widely across OECD countries. Based on data that are available for 2004, prices varied from 6.9 US cents per kWh in Norway to 28.3 US cents per kWh in Denmark. Electricity prices for households are also reported in Table 35 in terms of tonnes of oil equivalent to allow for comparison between fuels.



6. TRENDS IN THE OECD ELECTRICITY SECTOR6.1 Energy and Electricity IntensityTable 1 in Section II, OECD Total: Energy Consumption, GDP and Population provides data on relative changes in total primary energy supply (TPES), gross domestic product (GDP), population and electricity final consumption (TFC). The ratio of TPES to GDP shows the amount of energy input required per unit of national output. The data in the table indicate that TPES per unit of GDP (TPES/GDP), often used as a broad indicator of energy efficiency, has declined at an average annual rate of 1.4% since the first oil price shock in 1973. The aggregate table for the OECD as a whole masks significant regional differences, which are further elucidated in subsequent aggregate tables on each OECD region. For example, in the OECD Pacific region, the TPES/GDP ratio in 1973, at only 53% of the average for the OECD as a whole, was the lowest OECD region. The low ratio reflects the relative high price of domestic and imported energy in Japan and Korea in 1973, which encouraged efficiency. However, as time has passed, the ratio has declined in the Pacific region much more slowly than for the OECD as a whole. Several factors, including the high level of efficiency at the beginning, and the rapid economic development in Korea have affected this pattern. By 2004, the ratio remains the lowest in the OECD, but is now 72% of the average for the OECD as a whole. In OECD North America, which is heavily influenced by energy consumption patterns in the United States, the TPES/GDP ratio in 1973 was, by far, the highest in the OECD - some 129% of the average for the OECD as a whole. This reflects the relatively low price of domestic and imported energy in the US which discouraged investment in energy efficient technology, and other factors like geographic size (which encourages more auto usage), reliance on personal automobiles rather than mass transit etc. However, since OECD North America started with such a high ratio in 1973, it has experienced the most rapid rate of decline (1.8% per annum), and now stands at 114% of the average for the OECD as a whole. Nevertheless, it retains the highest ratio of any OECD region. The OECD Europe region falls in between the Pacific and North American regions. In 1973, the TPES/GDP ratio in the region was 94% of the average for the OECD as a whole. Between 1973 and 2004, the ratio declined at an average rate of 1.2% per annum. Thus, it declined more rapidly than the average ratio in the OECD Pacific region, but less rapidly than the ratio of the OECD North America region. By 2004, the regions ratio stood at 101% of the average for the OECD as a wholeonly slightly higher than it stood in 1973. While the broad measure of efficiency, TPES/GDP, suggests that all OECD regions are getting more energy efficient, albeit at differing rates, another measure shows a different trend. One measure of electricity intensity is the ratio of final consumption of electricity to gross domestic product (Electricity TFC/GDP). The indexed electricity intensity ratio for OECD as a whole has increased at an average annual rate of 0.1% from 1973 to 2003. Essentially,



as energy efficiency has improved for member countries as a whole, they are becoming more electricity intensive. However, the patterns within each region vary considerably. In the OECD Pacific region, the electricity intensity index has increased at an average annual rate of 0.7% per annum. In the OECD Europe region, the index has increased at an annual rate of 0.3%. The OECD North America shows a different pattern for electricity intensity, with a decline of 0.4% per annum. Thus, Europe and the Pacific are growing more electricity intensive as electricity intensity declines in the North American region. Steadily increasing electricity demand, problems in electricity market liberalization and heat or cold waves forced many utilities, even in countries with the most efficient electricity networks, to the limit of their generation capacities. Many countries in last years experienced temporary shortages of electricity supply and the risk of electricity shortfalls is higher than ever before. In relation to this topic, segments of the IEA report Saving Electricity in a hurry, are presented as a featured article at the end of this section. This report describes why temporary shortfalls in electricity supply occur and shows how to quickly reduce the demand for electricity to avoid the economic problems caused by persistent power shortages.

1974. Solar, wind and other non-combustible renewable energies, and inputs of combustible renewables and waste have increased at a rate of 17.6% and 10.8% respectively since 1974. However, the lack of reliable data from several countries in the earlier years of this time period may be significantly distorting growth rates. As more reliable and widespread renewables data becomes available (a separate renewables energy questionnaire was inaugurated in 2000 beginning with the year 1998) this growth rate may change. Data on geothermal, hydro, nuclear and combustible fossil fuels had been reliable and available for most member countries throughout the time period. The strongest growth since 1974 among these input categories has been for nuclear (7.8%) and geothermal (5.5%). Inputs of natural gas (4.2%), coal (2.9%) and hydro (0.8%) have increased more moderately since 1974. Inputs of oil for electricity generation have declined at a rate of 2.4% per annum since 1974.Average Annual Growth of Electricity Generation by Source in OECD Regions from 1974 to 2004 in %Source Coal Oil Gas Nuclear Geothermal Hydro Other Renew. Total N. America 3.0 -1.3 2.9 6.6 6.7 0.6 21.7 2.6 Pacific 6.7 -2.7 10.0 10.7 5.0 0.8 11.4 3.7 Europe 1.4 -3.3 5.0 8.5 3.5 1.0 10.1 2.4 Total 2.9 -2.4 4.2 7.8 5.5 0.8 11.9 2.7

6.2 Electricity ProductionEach regions natural endowment of resources, as well as the delivered price and availability of imported resources affect the mixture of inputs for electricity generation. Inputs are also affected by government policies related to environmental compliance, energy security, and by the availability of investment capital for energy technologies and infrastructure, and perceived risks associated with different technologies. Table 4 in Part II, OECD Total Electricity Generation by Source provides statistics on the input forms of energy used for electricity generation since

The table above summarises the growth rates of electricity generation by source for each OECD region. It illustrates the variation between input sources among the OECD regions. Not only has the Pacific region experienced the strongest growth rate, it has relied more heavily on nuclear, natural gas and coal among the major input fuels to meet generation needs. Coal consumption growth is higher in North America and the Pacific regions than in Europe. OECD Europe has relied most heavily on nuclear and gas among the major input fuels. Oil inputs have declined in every region.



7. SAVING ELECTRICITY IN A HURRYThe following text is from Saving Electricity in a hurry, an IEA publication by Mr. Alan Meier. The Executive Summary of the book and the main conclusions are provided here to acquaint readers of Electricity Information with ongoing work at the IEA.Summary of Estimated Savings Achieved in Regions through Programmes Designed to Save Electricity in a Hurry25Electricity savings (% )

20 15 10 5 0on a ay yo il io ni a az 01 03 nt ar To k ed e or w Br al i fo r 20 20 iz Ar an d an d Sw O N Fr an ce n

7.1 Executive SummaryTemporary shortfalls in electricity supply ranging from one day to many months have occurred at one time or another in almost every country. During these crises, the infrastructure to deliver electricity to the customer remains intact but the utility cannot supply as much power as consumers wish. Such shortfalls might occur as a result of a breakdown in a key power plant, a drought, a heat or cold wave, or partial loss of transmission capacity. The end of the crisis is generally known, that is, the power plant is repaired, the rains replenish the reservoirs, the heat wave abates, or full transmission capability is restored. One response to these shortfalls is to fix the supply problem as quickly as possible, such as by connecting temporary facilities or importing power. But some shortfalls are so large that drastic curtailment appears to be the only feasible means of still providing some electricity while maintaining the integrity of the electrical system. The book describes the experiences of several countries that chose a strategy of saving electricity in a hurry rather than suffer curtailments, indiscriminate blackouts and other consequences of electricity shortages. These countries include Sweden, Japan, Brazil, New Zealand and the United States. The shortfalls occurred in many different forms of electricity markets and for equally diverse reasons.

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Countries have successfully cut electricity demand by 0.5 to 20% by saving electricity in a hurry (see figure above). When confronted with a severe drought, Brazil cut its total electricity demand 20%, and sustained these savings for several months, without blackouts or causing major harm to the economy (see figure below).Electricity Demand in Brazil Before and After its Shortfall in 200140 System Demand (in average GW) 35 30 25 20 15 10 5 0 1996

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Sweden cut its total electricity demand by about 4% for one day in anticipation of a cold wave that would have overwhelmed electricity generating capacity. In Arizona (United States), a fire at a key transformer facility cut available power; conservation actions sustained over six weeks reduced demand 6% and avoided blackouts. There are three major strategies to save electricity quickly: Raise electricity prices. Encourage behavioural changes. Introduce more energy efficient technologies. The mix of the three strategies will depend on the time to prepare before the shortfall arrives, the anticipated duration of the shortfall, and the structure of the electricity markets. In fully liberalised electricity markets, the price mechanism will play the largest role in reducing electricity demand because experience has shown that higher electricity prices will stimulate conservation. A shortfall in a liberalised market is actually a price crisis which can be accommodated by normal market forces. In most current markets, however, there are administrative, political and technical obstacles to raising electricity prices quickly. The response in these countries must necessarily focus on behavioural and technical programmes to cut demand. Programmes to reduce electricity demand quickly differ significantly from conventional energy efficiency programmes such as appliance efficiency standards, building codes and tax incentives (called saving electricity slowly in the book). First, the savings need only be temporary, that is, electricity use can return to traditional levels at the end of the shortfall. Second, it is acceptable to request consumers to make sacrifices and accept inconveniences for the duration of the shortfall. Finally, the shortfalls may appear and end so quickly that is impossible to draw on technical improvements in energy efficiency. A mass media campaign can be surprisingly effective at quickly reducing electricity demand. Sophisticated media campaigns can be designed and launched in only a few days and reach a large number of consumers almost immediately. The messages must be carefully tailored not to blame the consumers for the problem and to convince them that individual actions will make a difference. Furthermore,

the campaign must explain in simple terms to consumers which measures will save. If the shortage occurs during peak hours, then the campaign must also explain when to save electricity. Sometimes consumers need to be educated before they can take actions. Many campaigns urged consumers to cut standby power use in homes and commercial buildings, but first they needed to explain what standby was and how it could be cut. Humour plays an unusually important role in encouraging consumers to conserve. Hundreds of measures have been used with success but nearly every campaign asked consumers to: Re-set thermostats to reduce heating or cooling demand. Switch off non-essential lighting. Adjust schedules for the use of electricityintensive equipment and industrial processes. Switch off office equipment or enable them to sleep in lower power modes.Example of Advertisement during New Zealands 2003 Electricity Shortfall

These behavioural measures can be further encouraged by programmes that give consumers rebates for successful reductions in electricity bills. Each shortfall is unique so the appropriate actions depend on how electricity is used and when it must be saved. Regular collection of data related to energy consumption and savings will help a ca

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Electricity Information 2005