2012 annual report - international energy agency · international energy agency 2012 annual report...

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

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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.


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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.


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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.


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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”.


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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.


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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.


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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.


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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.


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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.


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“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.


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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.


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).


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.


16

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.


17

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


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.


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


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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Printed by IEA, March 2013

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