Energy policy is the manner a given entity (often governmental) has decided to address issues of energy development including energy production, distribution and consumption. The attributes of energy policy may include legislation, international treaties, incentives to investment, and guidelines for energy conservation, taxation and other public policy techniques.

Measures used to produce an 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, storage, etc.)

• legislation affecting energy use, such as efficiency standards, emission standards

• instructions for state owned energy sector assets and organizations

• active participation in, co-ordination of and incentives for mineral fuels exploration (see geological survey) and other energy-related research and development

• fiscal policies related to energy products and services (taxes, exemptions, subsidies ...

• 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.

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 Factors within an energy policy

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:

• What is the extent of 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

Resources:

Energy Policies of IEA Countries -- Ireland  2007

Energy Policies of IEA Countries -- Germany  2007

Energy Policies of IEA Countries -- the Republic of Korea  2006

Energy Policies of IEA Countries -- Hungary  2007

Energy Policies of IEA Countries -- the United Kingdom  2006