Security of Energy Supply

The security of energy supply, together with import/export balance is obviously one of the most important macroeconomic and strategic issue for any country. The growing import dependence ratio in European Union (estimated on 70% before 2030, 90 % for oil) influenced several legislative initiatives (Directives) intended to facilitate development of biofuels market in Europe.

Security of energy supply is geared to the provision of uninterrupted physical availability on the market of energy products at prices for all consumers, which is important for both the general public welfare and the smooth functioning of the economy, and has become an important issue in the energy policy of countries throughout the World. The importance of energy independency is so high that The Ministry of Foreign Affairs of Japan has established so called ‘energy diplomacy’ working to secure stable supply of energy (energy security) for Japan together with the relevant Government offices (see, for example, the EU Green Paper on Security of Energy Supply ).

The substitution of imported conventional energy sources with renewable energy sources offers considerable potential for increasing the security of energy supply. Biomass, for its part, could significantly reinforce sustainable security of supply, considering that it is a widespread and versatile resource that can be used just as easily for heating, electricity production or as transport fuel. Biodiesel, produced usually from rapeseed oil, is particularly interesting as a substitute for mineral diesel because it can be used without any major technical problems in vehicles with a diesel engine. Bioethanol, the other most common biofuel, can be mixed with conventional petrol up to a level of around 20% without any technical modifications having to be made to the vehicle fleet.

Ethanol for gasoline substitution in Central Brazil		An empty filling station, Portland, Oregon, November 1973. The Arab oil embargo caused a huge shortage of gasoline in Western countries.
Oil Price History and Analysis