TABLE OF CONTENTS

EXECUTIVE SUMMARY....................................7
Nuclear phase-out.....................................................8
Energy market reform.................................................9
Climate change policy................................................11
Key recommendations................................................13

GENERAL ENERGY POLICY................................15
Country overview......................................................15
Supply-demand balance..............................................16
Energy forecasts......................................................20
Government and regulatory institutions..............................21
International leadership..............................................26
Key energy policies....................................................26
Structure,oversight and reform in electricity and gas markets......30
Security of supply.....................................................32
Taxation policy........................................................34
Critique................................................................35
Recommendations....................................................41

ENERGY AND THE ENVIRONMENT........................43
Carbon dioxide emissions profile.....................................43
Climate change policy................................................45
Measures to achieve emissions reductions...........................46
Critique................................................................51
Recommendations....................................................52

ENERGY EFFICIENCY.....................................53
Trends in energy efficiency............................................53
Policies and measures.................................................53
Critique................................................................61
Recommendations....................................................63

RENEWABLE ENERGY.....................................65
Production.............................................................65
Institutions............................................................66
Policies and measures.................................................68
Critique................................................................72
Recommendations....................................................77
Supply and demand...................................................79
Industry structure.....................................................81
Subsidies..............................................................82
Critique................................................................83
Recommendation.....................................................84

OIL......................................................85
Supply and demand...................................................85
Industry structure.....................................................88
Transport fuels........................................................90
Emergency response measures........................................91
Critique................................................................92
Recommendations....................................................92

NATURAL GAS............................................93
Supply and demand...................................................93
Industry structure.....................................................97
Competition...........................................................101
Gas network...........................................................104
Trading................................................................110
Pricing and taxes......................................................112
Critique................................................................114
Recommendations....................................................118

ELECTRICITY..............................................119
Capacity,generation and demand...................................119
Market design and regulation........................................122
Industry structure.....................................................127
Prices..................................................................137
Critique................................................................139
Recommendations....................................................147

NUCLEAR ENERGY........................................149
General overview......................................................149
Nuclear policy.........................................................149
Nuclear fuel cycle and radioactive waste management.............152
Institutional and legal framework....................................153
Critique................................................................153
Recommendations....................................................155

RESEARCH AND DEVELOPMENT............................157
Policy objectives and priorities........................................157
Institutions............................................................158
Funding...............................................................159
Key projects and research areas......................................161
Critique................................................................164
Recommendations....................................................165

ANNEX:ORGANISATION OF THE REVIEW..................167
Review team..........................................................167
Organisations visited..................................................168
Review criteria........................................................169
ANNEX:ENERGY BALANCES AND KEY STATISTICAL DATA.........171
ANNEX:INTERNATIONAL ENERGY AGENCY“SHARED GOALS”.....175
ANNEX:GLOSSARY AND LIST OF ABBREVIATIONS...............177