Energy balance and accounting A class based upon and adapted from previous works of Ghislaine Destais (GAEL, UGA) 1 Why Energy balance and accounting? Energy balance and accounting is about the overall design and operation of the energy system. • What are our energy needs? • What infrastructure do they require? • Where should it go? • How much will it cost? ➢ The answers to these questions affect hundreds of billions of euros of spending per year in Europe! ➢ Researchers deal with these questions by building computer models of the energy system and then, for example, optimizing its design and operation. ➢ Government agencies or commission, but also companies and non-governmental organizations make studies to look at possible future scenarios ➢ Challenging task: the need to capture all important effects; all interactions between energy sectors; correct physics ➢ Hard to assess: non- linearities (different LCOE) and social effects (NYMB) 2 Aims for this class ➢ Energy balance and accounting ➢ The chain of energy conversions from primary energy to energy service ➢ Build an energy balance ➢ Use an energy balance: French, European and global balance Important! Shared work on the terminology used in French and English! ✓ Document entitled : Energy Balance: a glossary of French/English terms ( expected contribution 1-2 words by student!!!) ✓ Consistent individual or common work to revise all energy sources and all measurement units 3 The chain of energy conversions Existence of processing losses at all energy stages from primary to useful energy • Final Energy Energy resources Useful Energy Energy service • energy resource = energy source = reservoir of potential energy also called: form of energy or simply energy • Primary energy source = natural energy reservoir = primary energy resource = primary energy Energy "production" and "consumption" = transformation of one form of energy into one or more other forms, part of which is useful for our uses. Primary consumption = energy supply of a country = energy availability of a country = Gross inland energy consumption (Eurostat) Primary Energy 100 % Primary production Energy production Secondary Energy= Carrier Energy 100 % Secondary production Final Energy Useful Energy Energy service Final consumption 4 Proven fossil fuel resources and reserves The reserves of a non-renewable energy source are the recoverable volume of an exhaustible resource under current economic conditions of access (economic concept and not physical, different degrees of certainty: proven, probable, possible) Graph showing future energy reserves for coal, gas and oil, Source: Ecotricity 5 Evolution of proven fossil fuel reserves Source: BP, Statistical Review of World Energy, 2020 Years of global coal, oil and natural gas left *The Reserves-to-Production (R/P) Ratio measures the number of years of fuel supplies left based on current annual consumption rates. Note that this can change through time through the discovery of new fuel reserves, and increases in annual consumption. 6 Fossil sources, we continue to find… 7 Energy as a service • Energy service = service provided to the user thermal, mobility, ... • Needs in France (Negawatt 2019 ): - Thermal uses 50% - Mechanical and electrical uses 50% Reasoning in terms of "energy service" makes it possible to questioning societal needs. ▪ Could we satisfy them by consuming less energy? ▪ Can we question certain needs? 8 Some reminder… Do you know: • What energy sources are used in your country? • Where the energy supply comes from? • Who are the main energy consumers? 9 Some reminder… 1. Total electricity generation: how much electricity does France generate? • About 500-525 TWh • About 300- 350 TWh 2. What was nuclear’s share in French electrical production in 2022? • 63 % • 78,30 % 3. What was the share of renewable energy in French electrical production in 2022? • 20,07% • 13,67% 4. How much electricity does France use? • In 2022, 6300 kWh per capita • In 2022, 8,364 kWh per capita 10 Energy account vs. Energy balance Balances Accounts Use the same data – Many flows are identical in balances and accounts Energy statistics Important differences – Terminology – Territory vs residence principle – Treatment of transport Natural Inputs, imports, transformation, supply, use, residuals Combined data sources: admin, surveys, models • • EA follows the definitions of a country economic activity in the national accounts (NA). All energy products that have been produced and are used commercially in a country are included, also consumption by country’s enterprises abroad. EB follows a territorial delimitation, and encompasses all flows of energy products on a country soil, regardless of nationality. 11 Territory vs residence principle Residents National territory Rest of the world Sold on territory to resident units Non-residents Sold on territory to non-residents Energy Statistics (foreign, tourists, transport companies) Energy Balances Sold to residents operating abroad (tourists, transport, companies etc.) Energy Accounts 12 Build an energy balance Remark: ➢ Why we need an energy balance? ➢ What is an energy balance? In French, Bilan énergétique ≠ ≠ bilan GES (Law n°2010-788) ≠ bilan Carbone (ADEME) ➢ Who builds energy balances? ➢ The stages of construction of the balance sheet ➢ The choice of an accounting framework ➢ The data collection ➢ Construction of the partial balance sheet ➢ Choice of units and accounting method ➢ The French energy balance 13 An energy balance for what? ➢ The need for a systemic and comparative vision ➢ Being able to reason about all the energy produced and consumed globally ➢ Understand the interactions between different energy production and consumption processes ➢ Be able to compare different forms of energy ➢ Identify the losses, the main imbalances, the points of tension ➢ Make forecasts or forward-looking scenarios Energy accounting makes it possible to make strategic choices concerning energy: ▪ ▪ ▪ ▪ making investment decisions, energy policy, choice of suppliers, savings measures ... 14 Who builds energy balances? • States and supranational organisations: OCDE/AIE, UN, EUROSTAT ex: http://www.iea.org/statistics/topics/energybalances/ • Local communities: Since 2011-2012, the regions have had a regional climate, air and energy plan SRCAE comprising a energy balance http://www.srcae.fr/spip.php?article304 • Companies, firms: 2012: European standard NF EN 16247-1 setting the essential requirements for carrying out quality energy audits « Le comptage de l'énergie » , a book by ADEME, useful for the industry different methods, categories of ressources but …many concepts in common 15 Energy systems management Energy auditing Standards and guides used in France Definitions and terminology Energetic performance Energy savings calculation 16 Avalable at the ENSE3 Library 17 The data collection • For Europe, Eurostat : http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/introd uction • For the world, OCDE/IAE(International Agency of Energy) http://www.iea.org/statistics/topics/energybalances/ • Statistic division of United Nations: http://unstats.un.org/unsd/energy/default.htm • And, for expert data, the company Enerdata : www.enerdata.net • BP http://www.bp.com/en/global/corporate/energyeconomics/statistical-review-of-world-energy.html 18 The data collection: European energy statistics • • Manuel sur les statistiques de l’énergie, OCDE, AIE, Eurostat http://www.iea.org/stats/docs/statistics_manual_french.pdf Information on European energy statistics http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Energy_introduced • Legal basis for collecting European energy data since October 2008: RÈGLEMENT (CE) No 1099/2008 DU PARLEMENT EUROPÉEN ET DU CONSEIL du 22 octobre 2008 concernant les statistiques de l'énergie http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:02008R1099- 20101020 Directive 2009/28/EC ENR establishing the criteria for accounting for renewable energies for the 2020 targets http://eur-lex.europa.eu/legalcontent/EN/ALL/;ELX_SESSIONID=66GsJpjYmJQr9l3jzgSvyY1hQY2xgQN1yK18Y1vKnHkGK52NGVfX !14189 12061?uri=CELEX:32009L0028 • • Tables: http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/data/main_tables# N • Data: http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database 19 The data collection in France • https://www.statistiques.developpement-durable.gouv.fr/donnees-mensuelles-delenergie?rubrique=22&dossier=188 Statistical operations of the Energy and Climate theme • Enquête données communales sur les livraisons de gaz et d’électricité https://www.statistiques.developpement-durable.gouv.fr/donnees-locales-de-consommation-denergie • Enquête Performance de l’Habitat, Équipements, Besoins et Usages de l’énergie (Phébus) https://www.statistiques.developpement-durable.gouv.fr/enquete-performance-de-lhabitat-equipementsbesoins-et-usages-de-lenergie-phebus • Enquête annuelle sur les ventes de produits pétroliers https://www.insee.fr/fr/statistiques/2119673 • Enquête annuelle sur la production d'électricité https://www.statistiques.developpement-durable.gouv.fr/enquete-annuelle-sur-la-production-delectriciteeape • Enquête annuelle sur le transport et la distribution d'électricité https://www.statistiques.developpement-durable.gouv.fr/enquete-annuelle-sur-le-transport-et-ladistribution-delectricite • Scénarios Association NegaWatt https://negawatt.org/scenario-2022/secteurs/negawatt 20 Methods used to collect data for indicators ➢ Administrative sources - before starting new data collection ➢ Surveys - representative sample - possibly expanding existing surveys ➢ Metering and measuring - costly but very effective for monitoring specific equipment efficiency ➢ Modelling - complementary to surveys or stand alone 21 Key energy and economic indicators • Energy Production/TPES • Net Oil Imports/GDP • Population • TPES/GDP • GDP • TPES/Population • Oil Supply/GDP • Oil Supply/Population • Electricity Consumption/GDP • Electricity Consumption/Population 22 Key figures of an energy balance (1) Total Primary Energy Supply (TPES) is the total energy supplied and available for use in a given year. ➢ How much energy does this country use? Source: IAE, Key World Energy Statistics, 2018 23 Key figures of an energy balance (2) TPES by energy source reflects the diversity of the energy mix of a country ➢ What is the most important energy source in the country? Source: IAE 24 Key figures of an energy balance (3) The ratio between production and TPES shows the energy dependency or self-sufficiency of a country. ➢ Is the country’s total energy production sufficient to cover its needs? ➢ For which fossil fuel is the country the least self-sufficient? Source: IAE 25 Key figures of an energy balance (4) The total final consumption (TFC) shows who are the final consumers of energy ➢ Who are the largest final energy consumers? ➢ Do they vary across energy sources? Source: IAE 26 World GDP and TES trends, 1990-2018 Globally, energy use and economic development have been decoupling, with gross domestic product (GDP) more than doubling between 1990 and 2018, whereas total energy supply (TES) grew by 59%. 27 Supply and Demand: electricity and heat Source: OCDE/ IAE 28 Gross electricity and heat production Inputs Gross outputs Gross Electricity - the sum of the electrical energy produced by all of the generating sets (including pumped storage) measured at the output terminals of the main generators . Gross Heat - is the heat produced by the installation, including the heat used by the installation’s auxiliaries which use a hot fluid (for activities such as space heating) and losses in the installation/network heat exchanges, as well as heat from chemical processes used as a primary energy form. 29 Net electricity and heat production Net Electricity: the gross electricity production less the electrical energy absorbed by the generating auxiliaries and the losses in the main generator transformers. Net Heat : the heat supplied to the distribution system as determined from measurements of the outgoing and return flows Gross production - Own use= Net production 30 Electricity and heat Gross production - Own use = Net production If autoproducers: - Own use of heat used by the autoproducer plant is not collected - Only heat sold to third parties is reported : Gross Heat = Net Heat 31 The stages of construction of the balance sheet ➢ The choice of an accounting framework : - Level of aggregation of energy sources Details of transactions taken into account ➢ Data collection (issues of access to information ): - Surveys Reconstruction from estimates ➢ The construction of partial balances in specific units ➢ Data aggregation: - Choice of a common unit (currently toe or kWh) Data aggregation: choice of conversion coefficients Consistency of accounting frameworks (eliminate double counting) 32 The choice of an accounting framework (1) Presentation in table form Forms of energy coal oil gas electricity RES Chain of conversions energetic production importation transformation International conventions distribution utilisation An energy balance can be carried out for any type of system economic (country, region, agglomeration, company, etc.). Its realization requires expressing all the flows in the same physical unit. 33 The choice of an accounting framework (2) Presentation as a flowchart Energy conversion chain coal Importations Stocks Exportations Transformations Cokeries Formes d’énergie oil Refineries gas Primary electricity RES Primary energy transport distribution Steel industry Thermal power plants Secondary energy Extraction Production Utilisation Industry Residential tertiary Agriculture Transport Non-energy uses Final energy 34 What is an energy balance? (1) An energy balance is a summary framework of all the energy flows in an economic system for a given period. 35 What is an energy balance? (2) Insee Références, édition 2020 – Énergie 36 What is an energy balance? (3) 37 Which are energy flows? • Carbon emissions from fossil fuel combustion • Cutting trees for fuel wood • Heating/cooling a home • Driving a car • Installing solar panels • Generating electricity from wind turbine • Fuel tax Can be estimated from some energy flows harvesting (supply) use use infrastructure supply expense 38 The energy balance: a compact view of a country’s energy situation Source: IAE 39 Energy balance : compact source of information Totals Supply Transformation and energy industries own use Total Final Consumption Industry Transports Other final consumption Non-energy use Electricity and heat output 40 Example of IAE Table 41
