Energy policy challenges for a sustainable future

Reducing energy intensity, improving energy efficiency and increasing clean, indigenous renewable energy resources are the aims shared by both secure energy supplies and sustainable development. The inclusion of external costs in energy bills, within a stable economic framework, is likely to be an incentive for energy efficiency and investment in new and renewable energy technologies. Regulation and fiscal policy are two instruments available to governments. Such measures could reduce the relative price of renewable energy, produce economies of scale and thus significantly boost the role of renewables. Increases in demand are common to all energy sources, in particular imported sources, both across the EU and accession countries. Given the common vulnerability of all key energy sectors, it is imperative that solutions be found which increase diversity and viability of indigenous resources.