International Organisations as Energy Market-Makers

This chapter explores the role of international organisations in energy market-making by reference to four models or approaches: (1) the ability of supranational organisations to fundamentally restructure an energy market, illustrated by the EU energy union and the unbundling efforts in the gas and electricity markets; (2) the ability of a multilateral organisation with wide membership to serve as a broker and standardiser, illustrated by the International Atomic Energy Agency (IAEA) and its role in striking a balance between promotion of nuclear energy and control of diversion of nuclear technology towards military uses; (3) the ability of narrower multilateral organisations to balance the relative positions of producers and consumers, illustrated by the role of the Organisation of Petroleum Exporting Countries, the International Energy Agency (IEA) and the International Energy Forum in managing oil supply and demand; and (4) the ability of international organisations to support information flows in market making, illustrated by the role of the IEA, REN21 and the International Renewable Energy Agency (IRENA) in the promotion of renewable energies. The chapter concludes that international organisations can play – and have indeed played – several important roles in energy market-making.