View source for Energy policy

{{Short description|How a government or business deals with energy}}
{{for|the academic journal|Energy Policy (journal)}}
{{Lead too short|date=June 2022}}
[[File:TAP TANAP SCP Schah Denis.png|thumb|300px|Example of energy policy decisions: The goal of the [[Southern Gas Corridor]], which connects the giant [[Shah Deniz gas field]] in [[Azerbaijan]] to Europe, is to reduce Europe's dependency on Russian gas.]]

'''Energy policy''' is the manner in which a given entity (often governmental) has decided to address issues of [[energy development]] including [[energy conversion]], distribution and [[Consumption (economics)|use]] as well as reduction of [[greenhouse gas emissions]] in order to contribute to [[climate change mitigation]]. The attributes of energy policy may include [[legislation]], international treaties, incentives to investment, guidelines for [[energy conservation]], [[tax]]ation and other public policy techniques. Energy is a core component of modern economies. A functioning economy requires not only labor and capital but also energy, for manufacturing processes, transportation, communication, agriculture, and more. [[Energy planning]] is more detailed than energy policy.   

Energy policy is closely related to [[climate change policy]] because totalled worldwide the energy sector [[Greenhouse gas emissions|emits more greenhouse gas]] than other sectors.<ref name=":0" /> 

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==Purposes==
Access to energy is critical for basic social needs, such as lighting, heating, cooking, and healthcare. Given the importance of energy, the price of energy has a direct effect on jobs, economic productivity, business competitiveness, and the cost of goods and services.

Frequently the dominant issue of energy policy is the risk of supply-demand mismatch (see: [[energy crisis]]). Current energy policies also address environmental issues (see: [[climate change]]), particularly challenging because of the need to reconcile global objectives and international rules with domestic needs and laws.<ref>{{cite journal |last1=Farah |first1=Paolo Davide |last2=Rossi |first2=Piercarlo |date=December 2, 2011 |title=National Energy Policies and Energy Security in the Context of Climate Change and Global Environmental Risks: A Theoretical Framework for Reconciling Domestic and International Law Through a Multiscalar and Multilevel Approach |journal=European Energy and Environmental Law Review |volume=2 |issue=6 |pages=232–244 |ssrn=1970698}}</ref>

The "human dimensions" of [[energy use]] are of increasing interest to [[business sector | business]], utilities, and policymakers. Using the [[social sciences]] to gain insights into energy [[consumer behavior]] can help policymakers to make better decisions about broad-based [[climate and energy]] options.<ref>{{Cite web |title=Nudge • Nudging consumers towards energy efficiency through behavioural science |url=https://www.nudgeproject.eu/ |access-date=2022-06-04 |website=Nudge |language=en-US}}</ref> This could facilitate more [[efficient energy use]], [[renewable energy commercialization | renewable-energy commercialization]], and [[carbon emission | carbon-emission]] reductions.<ref>Robert C. Armstrong, Catherine Wolfram, Robert Gross, Nathan S. Lewis, and [[M.V. Ramana]] et al., "The Frontiers of Energy", ''Nature Energy'', Vol 1, 11 January 2016.</ref>

== Approaches ==
{{See also|Sustainable energy#Government policies}}

The attributes of energy policy may include [[legislation]], international treaties, incentives to investment, guidelines for [[energy conservation]], [[tax]]ation and other public policy techniques. Economic and energy modelling can be used by governmental or inter-governmental bodies as an advisory and analysis tool. 

=== National energy policy ===
Some governments state an explicit energy policy. Others do not but in any case, each government practices some type of energy policy. A national energy policy comprises a set of measures involving that country's laws, treaties and agency directives. The energy policy of a sovereign nation may include one or more of the following measures: 

* statement of national policy regarding [[energy planning]], energy generation, transmission and usage
* [[legislation]] on commercial energy activities (trading, transport, [[energy storage|storage]], etc.)
* legislation affecting [[Efficient energy use|energy use]], such as [[Minimum Efficiency Performance Standards|efficiency standards]], [[emission standard]]s
* instructions for state-owned energy sector assets and organizations
* active participation in, co-ordination of and incentives for mineral [[fuel]]s exploration (see [[geological survey]]) and other energy-related research and development policy command
* [[fiscal policy|fiscal policies]] related to energy products and services (taxes, exemptions, [[energy subsidies|subsidies]], etc.)
* [[energy security]] and international policy measures such as:
** international energy sector treaties and alliances,
** general international trade agreements,
** special relations with energy-rich countries, including military presence and/or domination.
There are a number of elements that are naturally contained in a national energy policy, regardless of which of the above measures was used to arrive at the resultant policy. The chief elements intrinsic to an energy policy are:<ref>Hamilton, Michael S. 2013. ''Energy Policy Analysis: A Conceptual Framework''. Armonk, NY: M.E. Sharpe, Inc.</ref>

* What is the extent of [[energy independence|energy self-sufficiency]] for this nation
* Where future energy sources will derive
* How future energy will be consumed (e.g. among sectors)
* What fraction of the population will be acceptable to endure [[energy poverty]]
* What are the goals for future [[energy intensity]], ratio of energy consumed to [[GDP]]
* What is the reliability standard for distribution reliability
* What environmental externalities are acceptable and are forecast
* What form of "portable energy" is forecast (e.g. sources of fuel for motor vehicles)
* How will energy efficient hardware (e.g. hybrid vehicles, household appliances) be encouraged
* How can the national policy drive province, state and municipal functions
* What specific mechanisms (e.g. taxes, incentives, manufacturing standards) are in place to implement the total policy
*Do you want to develop and promote a [[Low-carbon economy#Decarbonisation plans that get to zero CO2 emissions|plan for how to get the world to zero CO<sub>2</sub> emissions]]?
* What future consequences there will be for national security and foreign policy

=== Relationship to other government policies ===
{{Further|climate change policy|environmental policy}}
Energy policy sometimes dominates and sometimes is dominated by other government policies. For example energy policy may dominate, supplying free coal to poor families and schools thus supporting [[social policy]],<ref>{{Cite web |date=2022-05-31 |title=WB-6 countries struggling to secure electricity production in their old coal power plants |url=https://balkangreenenergynews.com/wb-6-countries-struggling-to-secure-electricity-production-in-their-old-coal-power-plants/ |access-date=2022-06-04 |website=Balkan Green Energy News |language=en-US}}</ref> but thus causing [[air pollution]] and so impeding [[Health policy|heath policy]] and [[environmental policy]].<ref>{{Cite web |title=Health and climate change: country profile 2022: Turkey - Turkey {{!}} ReliefWeb |url=https://reliefweb.int/report/turkey/health-and-climate-change-country-profile-2022-turkey |access-date=2022-06-04 |website=reliefweb.int |language=en}}</ref>{{Rp|page=13}} On the other hand energy policy may be dominated by [[defense policy]], for example some counties started building expensive nuclear power plants to supply material for bombs.<ref>{{Cite web |title=The links between nuclear power and nuclear weapons - |url=https://cnduk.org/resources/links-nuclear-power-nuclear-weapons/ |access-date=2022-06-04 |language=en-GB}}</ref> Or defense policy may be dominated for a while, eventually resulting in [[Stranded asset|stranded assets]], such as [[Nord Stream 2]].

Energy policy is closely related to [[climate change policy]] because totalled worldwide the energy sector [[Greenhouse gas emissions|emits more greenhouse gas]] than other sectors.<ref name=":0">{{Cite web |title=Climate change – Topics |url=https://www.iea.org/topics/climate-change |access-date=2022-06-04 |website=IEA |language=en-GB}}</ref>

Energy policy decisions are sometimes not taken democratically.<ref>{{Cite web |last=Kasturi |first=Charu Sudan |title=Kazakhstan unrest highlights tricky terrain of fuel subsidy cuts |url=https://www.aljazeera.com/economy/2022/1/13/kazahstan-unrest-highlights-tricky-terrain-of-fuel-subsidy-cuts |access-date=2022-01-15 |website=www.aljazeera.com |language=en}}</ref>

=== Corporate energy policy   ===
In 2019, some companies “have committed to set climate targets across their operations and value chains aligned with limiting global temperature rise to 1.5°C above pre-industrial levels and reaching net-zero emissions by no later than 2050”.<ref>{{Cite web |date=22 September 2019 |title=87 Major Companies Lead the Way Towards a 1.5°C Future at UN Climate Action Summit |url=https://unfccc.int/news/87-major-companies-lead-the-way-towards-a-15degc-future-at-un-climate-action-summit |access-date=11 May 2020 |website=UNFCCC}}</ref> Corporate [[Power purchase agreement|power purchase agreements]] can kickstart renewable energy projects,<ref>{{Cite journal |last=Christophers |first=Brett |date=2022-05-19 |title=Taking Renewables to Market: Prospects for the After‐Subsidy Energy Transition: The 2021 Antipode RGS‐IBG Lecture |journal=Antipode |language=en |pages=anti.12847 |doi=10.1111/anti.12847 |s2cid=248939579 |issn=0066-4812|doi-access=free }}</ref> but the energy policies of some countries do not allow or discourage them.<ref>{{Cite web |title=PPA structures and parties involved around the world - DLA Piper Corporate PPAs |url=https://www.dlapiperintelligence.com/corporateppa/countries/ |access-date=2022-06-01 |website=www.dlapiperintelligence.com}}</ref>

== By type of energy ==
=== Nuclear energy ===
{{Excerpt|Nuclear energy policy|paragraphs=1|file=no}}

=== Renewable energy ===
{{Excerpt|renewable energy policy|Public policy landscape|paragraphs=1-2}}

== By country ==
Energy policies vary by country, see tables below.
{{world topic|Energy policy of|title=Energy policy by country|noredlinks=yes|state=expand}}
{{world topic|Energy in|title=Energy by country|noredlinks=yes|state=expand}}

==Examples==
=== China ===
{{excerpt|Energy policy of China|paragraphs=1|file=no}}
===India===
{{excerpt|Energy policy of India|paragraphs=1|file=no}}

===Ecuador===
{{excerpt|Energy policy of Ecuador|paragraphs=1|file=no}}

=== European Union ===
[[File:RF NG pipestoEU.gif|thumb|Russia was a key [[Russia in the European energy sector|oil and gas supplier to Europe]] (map from 2013). This changed with the [[Russian invasion of Ukraine]] in 2022.]]{{excerpt|Energy policy of the European Union|paragraphs=1|file=no}}

===Russia===
{{excerpt|Energy policy of Russia|paragraphs=1|file=no}}

=== United Kingdom ===
{{excerpt|Energy policy of the United Kingdom|paragraphs=1|file=no}}

===United States===
{{excerpt|Energy policy of the United States|paragraphs=1-3|file=no}}

==See also==
{{Portal|Energy|Renewable energy}}
*[[Energy economics|Energy balance]]
* [[Energy industry]]
*[[Energy law]]
*[[Energy security]]
*[[Energy supply]]
*[[Environmental policy]]
*[[Oil Shockwave]]
*[[Sustainable energy]]
*[[World Forum on Energy Regulation]] (WFER)
*{{in title|Energy policy of}}

==References==
{{Reflist}}

==External links==
{{Commons category|Energy policy}}
*[https://www.iea.org/policies/about ''"Energy Policies of (Country x)"'' series], [[International Energy Agency]]
*[http://esa.un.org/un-energy UN-Energy] - Global energy policy co-ordination
*[http://www.ren21.net Renewable Energy Policy Network (REN21)]
*[http://www.enerdata.net/enerdatauk/knowledge/eshop/market-report-by-category.php Information on energy institutions, policies and local energy companies by country, Enerdata Publications]

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[[Category:Energy economics]]
[[Category:Environmental social science]]
[[Category:Power control]]
[[Category:Climate change policy]]
[[Category:Energy|Policy]]
[[Category:Public policy]]