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Caspian Report - Issue: 08 - Fall 2014

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use continued to grow, albeit fairly<br />

slowly. In fact, average growth rate<br />

was only 0.9% per annum until 2006,<br />

when energy consumption hit a historical<br />

high of 1818.2 million tonnes<br />

of oil equivalent (Mtoe). From 2006,<br />

energy use began to fall, dropping to<br />

1673.4 Mtoe in 2012.<br />

The relative proportions of fuels in<br />

total energy consumption have also<br />

changed significantly. Figure 2 below<br />

plots shares of fuels in total domestic<br />

consumption for the years 1991 and<br />

2010. As can readily be seen from the<br />

figure, the proportion of coal in total<br />

energy use has fallen from 26% to<br />

16%, and the share of oil has fallen<br />

from 38% to 36%. On the other hand,<br />

renewable energy sources have doubled<br />

from 5% to 10%. The proportion<br />

of natural gas also rose significantly,<br />

from 18% to 25%. These figures<br />

suggest that use of cleaner energy<br />

sources has increased during the last<br />

two decades. Such changes can be attributed<br />

to increasing environmental<br />

concerns in EU countries.<br />

As mentioned above, one of the targets<br />

set out in the EU Energy and Climate<br />

Package is to increase energy<br />

efficiency. Therefore, it is expected<br />

that increasing energy efficiency will<br />

cause a significant reduction in total<br />

energy consumption. According<br />

to projections by DG Energy (<strong>2014</strong>),<br />

total energy consumption in the EU-<br />

28 countries will fall on average by<br />

0.38% per annum during the period<br />

from 2010 till 2035. However, as the<br />

improvement in energy efficiency<br />

reaches to its limits, total energy use<br />

will increase thereafter with economic<br />

growth. It is expected that<br />

total energy use in the EU countries<br />

will grow on average by 0.1% per annum<br />

from 2035 to 2050.<br />

The use of renewables will continue<br />

to increase till 2050, and is expected<br />

to reach 24% to total consumption.<br />

On the other hand, the shares of oil<br />

and coal are expected to drop to 31%<br />

and 8%, respectively, by 2050. Natural<br />

gas and nuclear energy will likely<br />

maintain their current proportions.<br />

Historical and projected volumes<br />

and share of fuels for the period until<br />

2050 are presented in Figure 3. Note<br />

that even by 2050, fossil fuels (oil,<br />

gas and coal) will still provide 63%<br />

of the EU’s total energy consumption.<br />

47<br />

CASPIAN REPORT, FALL <strong>2014</strong><br />

Figure 3. Gross domestic energy consumption in the EU.<br />

Source: DG Energy (<strong>2014</strong>). EU Energy, Transport and GHG Emissions, Trends to 2050

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