WYDZIAŁ ENERGETYKI I PALIW Energy System Analysis PROJECT Building your own Energy scenario using SAS approach Autorzy: Mateusz Stefanek Kraków, 09.06.2023 Spis treści Energy scenario ....................................................................................................................................... 4 Energy use and production...................................................................................................................... 5 Energy consumption ............................................................................................................................ 5 Electricity production. ......................................................................................................................... 6 District heating .................................................................................................................................... 6 CO2 emissions. ......................................................................................................................................... 7 Flow-diagram of CO2 emissions. ......................................................................................................... 7 Energy import and export. ...................................................................................................................... 8 Excess Electricity Production ............................................................................................................... 8 Costs of the energy system...................................................................................................................... 9 Cost of the energy system ................................................................................................................... 9 Merit order and fuel prices. .............................................................................................................. 10 Security of supply and profitability of dispatchable power plants. ....................................................... 11 Reliability ........................................................................................................................................... 11 Profitability of dispatchable power plants. ....................................................................................... 12 Renewability. ......................................................................................................................................... 13 Implications of this scenario. ................................................................................................................. 14 Investments needed .......................................................................................................................... 14 Area needed for wind ........................................................................................................................ 14 Suggestions for improvement ............................................................................................................... 14 Possible inconsistencies..................................................................................................................... 14 Unused potential ............................................................................................................................... 14 Extreme assumptions ........................................................................................................................ 15 Green gas and areable land ............................................................................................................... 15 Appendix A: Slider settings .................................................................................................................... 15 Supply • Electricity • Coal plants ....................................................................................................... 15 Supply • Electricity • Gas plants ........................................................................................................ 15 Supply • Electricity • Oil plants ......................................................................................................... 15 Supply • Electricity • Nuclear plants ................................................................................................. 15 Supply • Electricity • Coal gas plants................................................................................................. 15 Supply • Renewable electricity • Wind turbines ............................................................................... 16 Supply • Renewable electricity • Solar power .................................................................................. 16 Supply • Renewable electricity • Hydroelectric power ..................................................................... 16 Supply • Renewable electricity • Biomass plants.............................................................................. 16 Supply • Renewable electricity • Waste power ................................................................................ 16 Supply • Renewable electricity • Hydrogen plants ........................................................................... 16 Supply • Renewable electricity • Geothermal .................................................................................. 16 Supply • District heating • Heat sources ........................................................................................... 16 Supply • District heating • Transport and distribution losses ........................................................... 16 Supply • District heating • (Seasonal) storage of heat ...................................................................... 16 Supply • Hydrogen • Hydrogen production ...................................................................................... 17 Supply • Hydrogen • Hydrogen transport ......................................................................................... 17 Supply • Hydrogen • CO2 emissions of imported hydrogen ............................................................. 17 Supply • Transport fuels • Road transport ........................................................................................ 17 Supply • Transport fuels • Rail transport .......................................................................................... 17 Supply • Transport fuels • Domestic navigation................................................................................ 17 Supply • Transport fuels • International aviation.............................................................................. 17 Supply • Biomass • (Green) gas in gas network ................................................................................ 17 Supply • Biomass • Green gas production ........................................................................................ 17 Supply • Biomass • Wood pellets in steel production....................................................................... 18 Supply • Biomass • Biocoal and bio-oil in energy plants .................................................................. 18 Supply • Biomass • Oil mix in demand sectors ................................................................................. 18 Supply • Fuel production • Future production of primary carriers ................................................... 18 Energiemix Polska .................................................................................................................................. 19 Greenhouse gas footprint of Poland ..................................................................................................... 20 1. Energy scenario In my latest report, I will present Poland's energy scenario in 2050. In my opinion, the Polish Energy System must undergo a change to become more environmentally friendly and reduce greenhouse gas emissions. My main goal is to reduce the overall pollution of our planet by reducing greenhouse gas emissions (mainly CO2). The main goal is to reduce the drawing of energy from conventional sources to energy from renewable energy sources and nuclear power plants. My energy scenario envisages a minimum amount of energy drawn from conventional sources. The main problem of renewable energy in Poland is the weather conditions and difficulties in storing energy, which is why there must be nuclear and biomass power plants in reserve, which are much more environmentally friendly than conventional power plants. In conclusion, when drawing energy from renewable sources that depend on the weather, we should invest in energy storage so that on days when there is too much energy production we can store it for the future. Electricity mix: Picture 1 2. Energy use and production. Energy consumption The industry sector is the largest consumer of energy with 1.08 EJ of final demand (the energy which is directly consumed by a sector). Picture 2 When it comes to primary demand (final demand plus all transformation and distribution losses), the energy use for the whole system looks like this: Picture 3 When looking at primary demand, exported oil (products) can play a big role if refineries are still producing at a significant rate. Electricity production. In your scenario, most electricity is produced by the Nuclear 3rd Gen power plant (299.92 PJ). Picture 4 District heating District heating in your scenario can be used to heat houses and buildings and provide heat to agricultural sectors. The chart below shows the yearly balance of heat produced and consumed. Picture 5 3. CO2 emissions. In your scenario, a CO2 emission reduction of 68.6% has been realised. The chart below relates the CO2 in 2050 to the 1990 reference value and emissions in 2019. Picture 6 The reduction of 68.6% exceeds the Dutch national ambition for 2030 of 49%. Flow-diagram of CO2 emissions. The Sankey diagram below shows: which carriers are primarily responsible for CO2 emissions (left column); where in the system CO2 is produced (centre column); which part of the CO2 is captured and emitted (right column). Picture 7 You can build carbon capture and storage (CCS) power plants in the supply section of the ETM to reduce CO2 emissions of electricity generation. 4. Energy import and export. Your scenario has 3.45 EJ of net energy import in the end-year. Picture 8 Excess Electricity Production You created a scenario where for 1122 hours in the year, (volatile and must-run) electricity production exceeds demand. The histogram below shows what the frequency and distribution of durations of excess events are. Picture 9 Flexibility options such as batteries, power-to-heat and power-to-gas can be used to increase electricity demand and use it for later (storage) or for heating (power-to-heat) or replace natural gas (power-to-gas). In section Unused potential, more details on how to use flexible demand can be found. 5. Costs of the energy system. Cost of the energy system Costs of the future energy system are roughly €87.96 and are broken down in the following chart. Costs include. Investments. Fuel costs: using fuel prices set in the costs section. Operation and Maintenance: both variable and fixed. Weighted average costs of capital: assuming linear depreciation. Decommissioning costs: relevant for nuclear power plants only. Costs do not include subsidies and taxes. Picture 10 Merit order and fuel prices. The merit order ranks dispatchable power plants (those which you can switch on and off) according to their marginal costs (the costs of producing an extra MWh of electricity). Wind, solar and must-run plants have effectively zero marginal costs. The marginal costs and installed capacity of power generation for your scenario is shown in the chart below. Picture 11 Depending on the demand for electricity, the merit order determines which plants are running for each hour of the year. The plants with lowest marginal costs will often (baseload generation) whereas plants with higher marginal costs might only run in cases of peak demand. Fuel prices determine to a large extend the marginal costs of power plants. Increasing the price of coal and/or CO2 can, for instance, make gas fuelled power plants more competitive with coal fired power plants. 6. Security of supply and profitability of dispatchable power plants. Reliability The loss of load expectation (LOLE) is the expected number of hours per year that the electricity supply cannot meet its demand. A nonzero LOLE does not necessarily result in blackouts as electricity can be imported or can be available in batteries. The Netherlands accepts a LOLE of 4 h/yr. We distinguish (un)reliable electricity production as volatile electricity producers cannot be relied on at all times. In your scenario, there is 24.67 GW of reliable (dispatchable) electricity production. Resulting in 26 hours of loss of load. Picture 12 Similar to LOLE, the number of blackout hours is a measure for the reliability of the electricity supply in your scenario. It also takes into account the possibility for import and flexibility to prevent a shortage of power. Your scenario has zero blackout hours. Profitability of dispatchable power plants. Security of (electricity) supply and the profitability of dispatchable power plants are intimately linked. For dispatchable power plants to make money, they need to run sufficiently often, ideally when electricity prices are high. A reliable electricity system traditionally requires, however, that there are power plants available which are only needed for a couple of extreme demand peaks every year. In your scenario, 86.1% of dispatchable power plants is not profitable. This means that they are not earning back their investment costs (orange in table below) or are not even earning their OPEX (operational expenditure) back (red). Picture 13 Unprofitable plants will likely be taken out of commission after a while. You can improve their profitability by increasing electricity demand (making them run more hours). Also reducing electricity generation with zero marginal costs can make power plants profitable again. 7. Renewability. The percentage of renewable energy in your scenario is 62.5%. Picture 14 For electricity generation, the renewability is 83.6%. Picture 15 8. Implications of this scenario. Investments needed Your scenario spans 31 years. The various assumptions imply that on average the following list of technologies need to be installed every year: 48.4 off-shore wind turbines 67 inland wind turbines 21.5 coastal wind turbines 0 electric vehicles Area needed for wind Coastal area used by wind: 133.33 km² Area used by off-shore wind: 750 km² Area used by inland wind: 866.67 km² 9. Suggestions for improvement Possible inconsistencies Unused potential In your scenario, there are 1,122 hours that electricity production by volatile and must-run producers exceeds baseload demand. Some of this electricity is not used (curtailed). To usefully employ this electricity you can: Store electricity: in the flexibility section, you can build batteries in homes or indicate how much of electric car batteries can be used for storing electricity. Convert electricity to gas: in the flexibility section, you can build power-to-gas plants to convert electricity to hydrogen gas. Convert electricity to heat: in the flexibility section, you can build power-to-heat plants which generate heat from electricity and deliver the heat to either the residential or the industrial heating network. Increase interconnectivity: in the import/export section you can increase the capacity of the interconnectors with neighbouring countries. Increase demand: by electrifying for example heating/hot water production in houses or transport. Extreme assumptions Depending on your choices, this section highlights some assumptions which imply big changes in the energy system. This might help you to focus on which aspects of your scenario could use some extra argumentation or research. Green gas and areable land Your scenario has 80% of greengas mixed into the gas network. In your scenario, 86.1% of power plants is not profitable. This means that they are not earning back their investment costs and sometimes not even their running costs. Such plants will not stay open very long. Having them around in your future year might not be realistic. You can either Increase electricity demand: making the unprofitable plants run more hours could improve their situation. Reduce competing production: typically, wind and solar electricity generation has marginal costs close to zero, 'pushing' conventional plants out of the merit order. Close the plants: closing unprofitable plants might increase the realism of your scenario as such plants are not expected to exist very long. 10. Appendix A: Slider settings This appendix lists all the sliders which have been moved from their default value. Supply • Electricity • Coal plants Coal lignite: 7.54 GW → 0 W Lignite plant for district heat (CHP): 9.7 GW → 0 W Coal plant for district heat (CHP): 15.62 GW → 0 W Supply • Electricity • Gas plants Large-scale gas plant for district heat (CHP): 1.76 GW → 0 W Small-scale gas plant for district heat (CHP): 139.52 MW → 0 W Supply • Electricity • Oil plants Oil-fired: 1.16 MW → 0 W Supply • Electricity • Nuclear plants Nuclear 3rd Gen: 0 W → 11 GW Nuclear small modular reactor: 0 W → 2 GW Supply • Electricity • Coal gas plants Energy production: 100% → 0% Chemical feedstock: 0% → 100% Supply • Renewable electricity • Wind turbines Onshore inland: 6.77 GW → 13 GW Onshore coast: 0 W → 2 GW Offshore: 0 W → 4.5 GW Onshore inland with battery system: 0 W → 650 MW Supply • Renewable electricity • Solar power Solar PV plants: 835.37 MW → 15 GW Solar PV plants with battery system: 0 W → 3 GW Supply • Renewable electricity • Hydroelectric power River: 0 W → 2 GW Mountain: 973.51 MW → 4 GW Supply • Renewable electricity • Biomass plants Biomass CHP: 1 GW → 3 GW Biogas CHP: 133.53 MW → 1.2 GW Supply • Renewable electricity • Waste power Waste incinerator: 0 W → 263 MW Waste CHP: 164.07 MW → 1 GW Supply • Renewable electricity • Hydrogen plants Hydrogen turbine: 0 W → 3 GW Hydrogen plant (CCGT): 0 W → 1 GW Supply • Renewable electricity • Geothermal Geothermal electric: 0 W → 5 GW Supply • District heating • Heat sources Geothermal: 0 W → 7.5 GW Solar thermal: 0 W → 10 GW Collective water heat pump: 0 W → 3 GW Gas heater (network gas): 324.09 MW → 0 W Hydrogen heater: 0 W → 350 MW Biomass heater: 150.64 MW → 500 MW Waste heater: 14.51 MW → 350 MW Supply • District heating • Transport and distribution losses Transport and distribution losses: 12% → 10% Supply • District heating • (Seasonal) storage of heat Yearly losses: 30% → 22% Coal heater: 614.88 MW → 0 W Supply • Hydrogen • Hydrogen production Solar PV plant for H2: 0 W → 2 GW Supply • Hydrogen • Hydrogen transport H2 pipelines: 99% → 90.01% Compressed H2 in trucks: 1% → 9.99% Supply • Hydrogen • CO2 emissions of imported hydrogen Future import: 280.8 KG/MWH → 281 KG/MWH Supply • Transport fuels • Road transport Diesel: 94.46% → 30.03% Biodiesel: 5.54% → 69.97% Gasoline: 96.03% → 20.02% Bio-ethanol: 3.97% → 79.98% LNG: 100% → 20% Bio-LNG: 0% → 80% Supply • Transport fuels • Rail transport Diesel: 100% → 14.99% Biodiesel: 0% → 85.01% Supply • Transport fuels • Domestic navigation Diesel: 100% → 15.09% Biodiesel: 0% → 64.95% Bio-LNG: 0% → 9.96% Bio-ethanol: 0% → 10% LNG: 78.82% → 25% Bio-LNG: 21.18% → 75% Supply • Transport fuels • International aviation Kerosene: 100% → 24.97% Bio-kerosene: 0% → 75.03% Supply • Biomass • (Green) gas in gas network Natural gas: 99.44% → 19.97% Green gas: 0.56% → 80.03% Natural gas: 100% → 80.03% Regasified LNG: 0% → 19.97% Supply • Biomass • Green gas production Anaerobic digestion: 100% → 0% Dry biomass gasification: 0% → 50.03% Wet biomass gasification (SCW): 0% → 49.97% Supply • Biomass • Wood pellets in steel production Wood pellets in cyclone furnace: 0% → 40% Supply • Biomass • Biocoal and bio-oil in energy plants Gas from gas network: 48.85% → 50% Bio-oil: 0.12% → 50% Oil: 51.03% → 0% Supply • Biomass • Oil mix in demand sectors Diesel: 10.29% → 9.24% Diesel: 79.59% → 34.41% Diesel: 35.28% → 1.85% Diesel: 96.55% → 36.57% Biodiesel: 0% → 60.19% Biodiesel: 0% → 25% Biodiesel: 0% → 59.99% Kerosene: 0.01% → 0% Kerosene: 0.05% → 0% LPG: 20.15% → 3.45% LPG: 9.29% → 0% Other oil: 55.38% → 18.52% Other bio oil: 0% → 1.04% Other bio oil: 0.26% → 1.96% Other bio oil: 0% → 54.63% Supply • Fuel production • Future production of primary carriers Coal: 1.46 EJ → 0 J Lignite: 398 PJ → 0 J Uranium oxide: 0 J → 200 PJ 11. Picture 16 Energiemix Polska 12. Greenhouse gas footprint of Poland Picture 17 13. References https://esmlab.agh.edu.pl/