Energy crisis could be turning point for policy making: IEA head

SONDERBORG, Denmark

International Energy Agency (IEA) head said the world is going through the first global energy crisis but despite the challenges, the crisis may well be a turning point in energy policy making for the next years with the energy efficiency at the heart of policies.

Fatih Birol's remarks came at the opening session of the IEA's 7th Annual Global Conference on Energy Efficiency in Sonderborg, Denmark.

The conference is jointly organized by the IEA and Denmark's Climate, Energy, and Utilities Ministry with the support of the Danish engineering company Danfoss.

Reminding the developments after the 1970s oil crisis when the efficiency of the cars was improved to a great extent, Birol noted that this crisis may be another reason for accelerated action on energy efficiency.

The IEA announced two different 10-point plans with recommendations to cut oil and gas use for reducing the EU's reliance on Russian fossil fuel imports.

If European consumers reduce their average heating consumption by two degrees Celsius, it could save 20 billion cubic meters (706 billion cubic feet) of natural gas a year -- the amount coming from Russia via the Nord Stream I, Birol noted.

There could be difficulties in the upcoming winter on the supply side, so the demand-side measures to reduce consumption are of critical importance to fight the challenges, he added.

Birol also warned against a potential rise in oil demand during the summer months, when many oil products may well be experiencing tightness of supply.

So, measures should be taken to reduce the demand for oil products, he said.

"There are things that are in our hands. And these are some immediate responses to the crisis but there can be some structural ones.

"Our new analysis shows very clearly that without new technologies -- and if the countries perform the best practices -- energy efficiency measures will save energy equal to the entire energy consumption of China," he noted.

"I do not know any other solution than energy efficiency that can simultaneously address our economic crisis, energy crisis, and climate crisis problems simultaneously."

Without energy efficiency, reducing reliance on Russia impossible

European Commissioner for Energy Kadri Simson reminded the EU's REPowerEU plan which includes three pillars -- diversification of energy supplies, an accelerated rollout of renewables, and saving energy both through short-term energy-saving measures and long-term structured improvements.

"No matter how hard we work, we have renewable deployment and alternative energy supplies to get rid of dependence on Russian imports this decade and (even) earlier. It will be impossible without saving energy," she noted.

The plan focuses on achieving immediate energy savings through behavioral changes which could cut gas and oil demand, Simson added.

She stressed that the developed countries need to lead the way in energy savings by avoiding resource-intensive solutions.