ENER02 CO2 intensity of electricity and heat generation Key message The CO2 intensity of public conventional thermal power production, combining all fuels, decreased by 6% in the EU27 between 2005 and 2009. The main reason being fuel switching to non-fossil fuels and energy efficiency improvements. In 2009, 56% of all non-fossil fuel generated electricity was produced using nuclear energy whereas renewable energy accounted for 45% of all non-fossil fuels. Combining fossil fuels, nuclear and renewables led to a reduction of 46% in CO2 (electricity-only) emissions per KWh electricity produced in 2009, demonstrating that the decarbonisation of the fuel mix shows significant benefits to overall CO2 emission reduction from electricity generation. The increased share of nuclear and renewables in the fuel mix for public electricity and heat generation led to a reduction in CO2 intensity of 7% from 1990 to 2009. The increase in the share of renewables (including biomass) used in electricity generation equated to reduction of 130Mt of CO2 in 2009 compared 1990. A reduction of 265Mt of CO2 can be allocated to fossil fuel switching and a reduction of 235Mt of CO2 was to due efficiency improvement compared to an all fossil fuel scenario. The contribution of nuclear to the overall electricity mix however reduced by 8% between 2005 and 2009. Between 2005 and 2009 CO2 emission (g) per kWh of electricity and heat output decreased by 5.4% within the EU27 compared to the USA and China, where g CO2 emissions per kWh decreased by 11% and 6% respectively. The global CO2 emissions per kWh however decrease very marginally by 0.01% over the same period. Rationale The EU’s current energy system remains heavily dependent on fossil fuels. Nearly 80 % of total greenhouse gas emissions in the EU-27 are caused by energy production (i.e. electricity and heat, refining), energy use by the industry, services and households, and transport. Carbon dioxide emissions, while not the most potent greenhouse gas, account for a significant share of the greenhouse gas effect. Reducing carbon dioxide emissions of the electricity and heat generation remains an important objective for climate change mitigation efforts. This indicator is closely linked with ENER 30 1. Indicator assessment Key policy question: how fast are we shifting towards a less carbon intensive electricity system in Europe? The CO2 intensity of public conventional thermal power production, combining all fuels, decreased by 26% in the EU27 between 1990 and 2009 with an average annual decrease of 1.6%.Between 1990 and 2005 the CO2 intensity decreased gradually, whereas the CO2 intensity fluctuated significantly between 2005 and 2009 with a 0.6% increase between 2005 and 2006 and a 4.1% decrease between 2007 and 2008, mainly due to significant changes in the economic growth across Europe. However with the economic recovery the move to a less carbon intensive electricity system is likely to continue. The European Commission’s 2020 strategy, published in 2010, sets clear targets of increasing the amount of renewables used in energy production and an increase in energy efficient by 20%. Specific policy question What is the contribution of various non-fossil generation capacities to the decarbonisation of the electricity system in Europe? ENER02 CO2 intensity of energy heat and electricity generation 1 The increase in non-fossil in electricity and heat generation has significantly contributed to a reduction in CO2 emissions. The contribution of various non-fossil generation capacities to the decarbonisation of the electricity system in Europe are listed below. - Renewable energy, primarily biomass, contributed 9% to the overall electricity and heat generation. Electricity and heat generated from renewables increased by 53% between 2005 and 2009. - Electricity and heat generation from hydro plants contributed 12% to the energy generation fuel mix in 2009. Electricity and heat generation from hydro plants increased by 14% between 1990 and 2009. - Electricity and heat generation from wind plants contributed 3% to the energy generation fuel mix in 2009. Electricity and heat generation from wind plants increased by more than 1000% between 1990 and 2009 showing the single largest increase of any non fossil fuel over this time period. Between 2005 and 2009 this increase slowed down to 91%. - Electricity and heat generation from nuclear power contributed 21% to the energy generation fuel mix in 2009 and increased by 13% over the time period 1990 to 2009. Recent event in Japan in 2011 will see this trend to slow down with countries such as Germany phasing out nuclear power in the very near future. For more information on the share of renewable electricity in gross electricity consumption see ENER30. Specific policy question: what are the main factors contributing to the observed trends of carbon emissions of electricity/heat production? The increase of non fossil fuels in electricity and heat generation and the increase in energy efficiency have a significant impact on the carbon intensity of electricity generation. Biomass1 input to public electricity and heat plants increased from about 800 thousand TJ in 2005 to 1.2 million in 20092. The share of biomass in all fuels used in Public Electricity and Heat Production (CRF 1A1a) went up from 4.8% in 2005 to 7.5% in 2009. It has to be noted that under the IPCC3 GHG Inventory reporting guidelines CO2 emissions from combustion of biomass fuels are not included in the energy sector if the biomass is sustainably produced. The relationship between electricity and heat generation and CO2 intensity in the EU27 during 20052009 (Figures 4) can be explained by the following factors: 1. Electricity and heat production decreased by 5% between 2005 and 2009 with an associated decrease in CO2 intensity of 3%. Between 2005 and 2009 energy demand decreased by 7% whereas overall energy has increase by 3% since 1990. The intensity of CO2 emissions from public conventional thermal power plants in the EU-27 decreased by about 7% from 2005 to 2009 due to improvements in the majority of Member States. This reduction has generally occurred as a result of the closure of old and inefficient coalfired plants and their replacement with either newer, more efficient coal-fired plants or new gasfired plants. Austria and Spain achieved greater than 20 % reductions in the intensity of CO2 emissions. Finland, Switzerland and Norway have the highest carbon intensity (see Figures 3). 2. Thermal efficiency: There was a 2% reduction in the fossil-fuel input per unit of electricity produced from fossil fuels between 2005-2009 compared to a 15% reduction between 1990 and 2009. This equates to a 3% reduction in CO2 emission between 2005 and 2009. 3. Fuel switching: The combination of high coal and carbon prices accompanied by a drop in natural gas prices in 2008 and 2009 induced heat and electricity producers to replace more polluting coal by gas and as a result, reduce their GHG emissions. The use of biomass and other renewable sources (wind and hydroelectric power) has also increased significantly in 2009, attributing further to the reduction in GHG emissions. Changes in the fossil fuel mix used to produce electricity (e.g. fuel switching from coal and lignite to natural gas) with much of this being linked to 1 Under the IPCC guidelines CO2 emissions from combustion of biomass fuels are not included in totals for the energy sector if the biomass is sustainably produced because it is assumed that the CO2 would have been released anyway from natural processes. If biomass is harvested at an unsustainable rate (e.g. faster than annual re-growth) the emissions will have to be reported in MS Inventories under Energy, creating an incentive for MS to firstly use biomass to reduce CO2 emissions and secondly use sustainably produced biomass.. Figure 3 clearly indicates that the penetration of biomass into the fuel mix reduces overall CO 2 emissions from electricity production. 2 Based on the 2011 EU GHG inventory to UNFCCC (http://unfccc.int/national_reports/annex_i_ghg_inventories/national_inventories_submissions/items/5888.php) 3 Intergovernmental Panel on Climate Change ENER02 CO2 intensity of energy heat and electricity generation 2 the increased use of the economically attractive gas turbine combined cycle technology and the closure of a number of coal-fired power plants. How can the decarbonisation of the electricity system help the shift towards a more sustainable transport sector? The recently published White paper4 sets out over 60 measures to further develop a sustainable transport sector in line with Europe’s move towards a low carbon economy as set out in the Energy and Climate change package (20-20-20 ceilings). Road transport is currently heavily depending on fossil fuel. Both the 2050 Road Map5 and the Renewable directive (2009/28/EC) are setting the way for an increased use of renewable within the transport sector. This can be facilitated by increased use of electricity in the transport sector, provided that the electricity comes from renewable sources. . Fig.1: CO2 Emissions per kWh of Electricity and Heat Output (g CO2 per kWh) 900 CO2 per kWh (g CO2 per kWh) 800 700 World 600 500 China (including Hong Kong) 400 Russian Federation 300 200 United States European Union - 27 100 0 Source: IEA 4 5 http://ec.europa.eu/transport/strategies/doc/2001_white_paper/lb_com_2001_0370_en.pdf http://ec.europa.eu/clima/policies/roadmap/index_en.htm ENER02 CO2 intensity of energy heat and electricity generation 3 Fig.2: CO2 (g) per KWh in 2009 (electricity only) 400 350 CO2 electricity (gr) per Kwh 300 250 200 150 100 50 0 Fig 3: Emissions intensity of carbon dioxide from public conventional thermal power production 2005 2.0% 2009 % increase Least % reduction Greatest % reduction 1.8% CO2 intensity (tonnes per toe) 1.6% 1.4% 1.2% 1.0% 0.8% 0.6% 0.4% ENER02 CO2 intensity of energy heat and electricity generation Spain Austria Belgium Turkey Sweden Ireland Lithuania Italy France United … Bulgaria EEA32 EU27 Greece Poland Luxembourg Estonia Slovenia Hungary Cyprus Germany Malta Netherlands Latvia Portugal Romania Denmark Finland Slovakia Norway Switzerland 0.0% Czech … 0.2% 4 Fig 4: Estimated impact of different factors on the reduction in emissions of CO 2 from public electricity and heat production between 1990 and 2009, EU27 2250 Change due to efficiency improvement 2000 Emissions of carbon dioxide (Mtonnes) 1750 Change due to fossil fuel switching 1500 Change due to share of nuclear 1250 1000 Change due to share of renewables (including biomass) 750 500 Actual CO2 emissions 250 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 -250 1990 0 Hypothetical emissions if no changes had occurred Metadata Justification for indicator selection The EU’s current energy system remains heavily dependent on fossil fuels. Nearly 80 % of total greenhouse gas emissions in the EU-27 are caused by energy production (i.e. electricity and heat, refining), energy use by the industry, services and households, and transport. Heat and electricity generation leads to significant emissions of greenhouse gas. Reduction of CO 2 emissions, including from the power sector, are needed in many countries to achieve the greenhouse gas emission reduction targets as agreed under the Kyoto Protocol. Understanding what is driving the CO 2 intensity of heat and electricity generation can help identify successful policies for reducing the environmental impacts of this sector. Scientific references: * No rationale references available Indicator definition Annual emissions of CO2 in UNFCCC reporting format (In Mt = million tonnes). For CO2 only, the (national) totals do not include emissions from biomass burning or emissions or removals from land-use change and forestry (LULUCF – CFR 5). The energy sector (CFR 1) is responsible for energy-related emissions, such as those arising from fuel combustion activities and fugitive emissions from fuels. Fuel combustion activities include: energy industries, manufacturing industries and construction, transport, other sectors and other stationary or mobile emissions from fuel combustion. Fugitive emissions from fuels include: solid fuels and oil and natural gas.. ENER02 CO2 intensity of energy heat and electricity generation 5 Units Emission of pollutants: Mtonnes, carbon intensity in g/kWh Policy context and targets Context description Emissions of CO2 from fossil combustion in electricity and heat production contribute significantly to total greenhouse gas emissions in the EU. The indicator estimates to what extent changes in efficiency, fuel mix and pollution abatement have influenced the CO2 intensity of electricity and heat production. The trends evident in this factsheet, together with projections in other factsheets (e.g. see EN01), indicate that additional policy measures will need to be implemented in order to meet the EU’s longer-term emissions reduction targets, particularly for CO2. In addition to the EU’s commitments to reduce greenhouse gas emissions (of which CO2 is the main gas) under the Kyoto Protocol, In March 2007, the Council of the European Union decided that EU would make a firm independent commitment to achieving at least a 20 % reduction of greenhouse gas emissions by 2020 compared to 1990. It also endorsed an EU objective of a 30 % reduction in greenhouse gas emissions by 2020 compared to 1990 provided that other developed countries commit themselves to comparable emission reductions. This was further strengthen in the The EU climate and energy package (E&E), setting a 20 % reduction in GHG, 20% reduction in energy consumption and 20% reduction in primary energy use (knows as the "20-20-20" targets) be reached by 2020. The E&E primarily focuses on energy efficiency and includes the Effort Sharing decision targets as well as more stringent renewable targets. With the ‘Roadmap for moving to a low-carbon economy in 2050’ the European commission is looking beyond the 2020 targets with the aim of keeping global warming below the 2 degree threshold limit. Transport will play an important role in the move to a low carbon economy. The recently published White paper sets out over 60 measure to move towards a sustainable transport across Europe. The total emissions of CO2 from electricity and heat production depend on both the amount of electricity and heat produced as well as the CO2 intensity per unit produced (which are also fuel specific). Therefore the policies and measures to reduce emissions need to address both demand (e.g. through improvements in the energy efficiency of buildings and appliances) to stem the rapid increase in electricity and heat production, as well as CO2 intensity per unit of electricity and heat produced (e.g. by fuel switching, generation efficiency). A number of EU policies have contributed to efforts to curb total electricity and heat produced and CO2 intensity per unit produced. For example, the Directives establishing rules for the common market for electricity (2003/54/EC) and gas (2003/55/EC) have encouraged switching to cheaper and more efficient technologies, in particular to gas. The market liberalisation and competition resulting from these Directives also contributed to cheaper energy prices in the 1990s which may have encouraged energy consumption. However the steep increases in energy prices since 2000 and particularly after 2004, may help to constrain energy demand. Another important policy is the EU ETS which sets a cap on overall emissions of GHG from the industrial sector (factories, power plants and other installations in the system). The Effort sharing decision is now being added to regulated sectors outside the EU ETS to ensure all sources are captured and controlled through emission targets. The integrated pollution prevention and control (IPPC) Directive (96/61/EC) requires plants of less than 20MW to meet a set of basic energy efficiency provisions. For larger plants energy efficiency is covered by the plants’ participation within the EU greenhouse gas emissions trading scheme established by Directive 2003/87/EC. Under the Directive, each Member State was required to draw up a National Allocation Plan that included caps on CO2 emissions from all thermal electricity generating plant greater than 20 MW. A shift to less carbon intensive fuels for electricity generation, such as gas, and improvements in efficiency are important options to help generators meet their requirements under the directive. The EC’s Green Paper on Energy Efficiency (COM(2005)265 final) highlighted opportunities to improve the efficiency of electricity and heat production by ensuring that: the most efficient CCGT technology is used; research is expanded to improve the efficiency of coal generation; the use of distributed generation is expanded particularly to make greater use of waste heat, and that in combination with this a greater use of combined heat and power (cogeneration) technology is ENER02 CO2 intensity of energy heat and electricity generation 6 realised. The Green Paper identified that 20% of EU energy use could be saved. The EC’s Action Plan for Energy Efficiency (COM(2006) 545 final) moved towards realising these savings and includes initiatives to make energy appliances, buildings, transport and energy generation more efficient, and introduces stringent new energy efficiency standards and financing mechanisms to support more energy efficient products. The EC also created a Covenant of Mayors of the 20 to 30 most pioneering cities in Europe and an international agreement on energy efficiency. Targets No targets have been specified Related policy documents o o o o o o o o o o o o o o o o Council Directive 96/61/EC (IPPC) Council Directive 96/61/EC of 24 September 1996 concerning Integrated Pollution Prevention and Control (IPPC). Official Journal L 257. DIRECTIVE 2001/77/EC Renewable electricity Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market DIRECTIVE 2006/32/EC The directive is relatefd to energy end-use efficiency and energy services and repeals Council Directive 93/76/EEC DIRECTIVE 2005/32/EC The Directive establises a framework for the setting of ecodesign requirements for energy-using products and amends Council Directive 92/42/EEC and Directives 96/57/EC and 2000/55/EC of the European Parliament and of the Council COM(2006) 545 Action Plan for Energy Efficiency COM(2005) 265 final. Green paper on energy efficiency or doing more with less. European Commission. 2003/55/EC Directives concerning common rules for the internal market in gas 2003/54/EC Directives concerning common rules for the internal market in electricity Consolidated version of Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community Directive 2009/29/EC of the European Parliament and of the Council of 23 April 2009 amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading scheme of the Community Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources The EU climate and energy package - Effort Sharing Decision - Binding national targets for renewable energy which collectively will lift the average renewable share across the EU to 20% by 2020 - A legal framework to promote the development and safe use of carbon capture and storage (CCS). Roadmap for moving to a low-carbon economy in 2050 WHITE PAPER, European transport policy for 2010 Methodology for indicator calculation CO2 emissions data are annual official data submissions to the United Nations Framework Convention on Climate Change (UNFCCC) and EU Monitoring mechanism. Combination of emission estimates based on volume of activities and emission factors. Recommended methodologies for 7 ENER02 CO2 intensity of energy heat and electricity generation emission data collection are compiled in the Intergovernmental Panel on Climate Change (IPCC). Guidelines for National Greenhouse Gas Inventories (IPCC, 2006). supplemented by the Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories (IPCC, 2000) and UNFCCC Guidelines (UNFCCC, 2000). Energy data collected annually by Eurostat. Eurostat definitions for energy statistics http://ec.europa.eu/eurostat/ramon/nomenclatures/index.cfm?TargetUrl=ACT_ DELIMITER&StrNom=CODED2&StrFormat=CSV&StrLanguageCode=EN Eurostat metadata for energy statistics http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/metadata Methodology references No methodology references available. Data specifications EEA data references National emissions reported to the UNFCCC and to the EU Greenhouse Gas Monitoring Mechanism Energy statistics (Eurostat) Data sources in latest figures o o o o IEA: used in figure CO2 Emissions per kWh of Electricity and Heat Output (g CO2 per kWh) EUROSTAT. Energy data - Output from conventional/public/autoproducer thermal power stations, Output from district heating plants, Origin Biomass, Transformation output from Eurostat http://epp.eurostat.ec.europa.eu/portal/page/portal/energy/data/database EEA. National emissions reported to the UNFCCC and to the EU Greenhouse Gas Monitoring Mechanism. Available at: http://dataservice.eea.europa.eu/PivotApp/pivot.aspx?pivotid=475 Uncertainties Methodology uncertainty Energy data have been traditionally compiled by Eurostat through the annual Joint Questionnaires, shared by Eurostat and the International Energy Agency, following a well-established and harmonised methodology. However a certain level of uncertainty added due to the fact that for EU-27 countries sometimes reported differently than in joint questionnaires (e.g. CHP, municipal waste, etc) to comply with the new energy regulation. Methodological information on the annual Joint Questionnaires and data compilation can be found in Eurostat's web page for metadata on energy statistics. http://europa.eu.int/estatref/info/sdds/en/sirene/energy_sm1.htm. Emissions: Officially reported data following agreed procedures. E.g. CO2 data are based upon annual submissions under the UNFCCC. Data sets uncertainty For energy related greenhouse gas emissions the results suggest uncertainties between ± 1 % (stationary combustion) and ± 11 % (fugitive emissions). For public electricity and heat production specifically, which is the focus of the indicator, the uncertainty is estimated to be ± 3 %. For the new Member States and some other EEA countries, uncertainties are assumed to be higher than for the ENER02 CO2 intensity of energy heat and electricity generation 8 EU-15 Member States because of data gaps. Rationale uncertainty No uncertainty has been specified ENER02 CO2 intensity of energy heat and electricity generation 9