Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra Sonia Yeh, Geoff Morrison, Jacob Teter (University of California at Davis) Raul Quiceno (Shell Research Limited) Kenneth Gillingham (Yale School of Forestry & Environmental Studies) The study projects lifecycle energy efficiency for crude, natural gas, coal, and nuclear and renewables to 2100 What is the impact of carbon policy on the evolution of lifecycle efficiency? What are the differences in lifecycle efficiencies of energy resources across regions? Between developed and developing countries? What are the relative roles of technological advancements and structural changes in evolution of lifecycle efficiency? Carbon intensity of energy resources in terms of CO2/MJ(useful) instead of CO2/MJ(final) Lifecycle Energy Efficiency = Useful Energy / Primary Energy The lifecycle thermodynamic efficiency considers energy flows from primary to useful energy Figure 1. Energy system schematic showing the lifecycle stages (pz). The box represents the boundary for estimating lifecycle efficiency in this study. Methodology General Change Assessment Model (GCAM) developed by Pacific Northwest National Laboratory (PNNL) Partial-equilibrium model Links representations of global energy, agriculture, land-use, and climate systems Three end-uses: Industry, Transportation and Buildings (commercial and residential) 14 regions Scenario Analysis • Total 15 scenarios • Carbon Policy – No carbon policy, Moderate carbon policy (RCP6.0), and Aggressive Carbon Policy (RCP 4.5) • CCS and No-CCS • Technological progress: Reference and Advanced Where are the energy losses? Crude (EJ) 300 Gas (EJ) 250 250 500 200 400 150 300 100 200 50 50 100 0 0 0 200 Coal (EJ) 2075 2085 2095 2075 2085 2095 2065 2055 2045 2035 2025 2015 2095 2085 2075 2065 2055 2045 2035 2025 2005 All Energy (EJ) 2000 Nuclear & Renewable 700 2015 2095 2085 2075 2065 2055 2045 2035 2025 2015 2005 100 2005 150 600 1500 500 400 1000 300 200 500 Energy losses at various stages of fuel conversion and the useful energy consumption by energy resource for the BAU scenario 2065 2055 2045 2035 2025 2015 2095 2085 2075 2065 2055 2045 2035 2025 2015 0 2005 0 2005 100 Time trends of Efficiency 80% 2015 2025 2035 2045 2055 2065 2075 2085 2095 2025 2035 2045 2055 2065 2075 2085 2095 2095 2085 600 500 400 300 200 Primary Energy (EJ) 2095 2085 2075 2065 2055 2045 2035 2025 100 Lifecycle efficiency (%) FIG 3: Potential lifecycle energy efficiencies (blue) and total primary energy (orange) across 15 scenarios (Global Level) 2075 2065 2055 2045 2035 2025 2015 2005 700 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2085 20% 2075 20% 2065 20% 2055 20% 2045 30% 2035 30% 2025 30% 2015 30% 2005 40% 2095 40% 2085 40% 2075 40% 2065 50% 2055 60% 50% 2045 60% 50% 2035 60% 50% 2025 70% 2015 70% 2005 70% 60% Nuclear and Renewables 2015 Coal 2005 80% 70% 2005 Lifecycle Efficiency % Primary Energy (EJ) Natural gas 80% 2005 Crude 80% - Primary Energy (EJ) 500 450 400 350 300 250 200 150 100 50 2095 2085 2075 2065 2055 500 450 400 350 300 250 200 150 100 50 2095 2085 2075 2065 2055 2045 500 450 400 350 300 250 200 150 100 50 - Lifecycle efficiency (%) Primary Energy (EJ) Average of No-Policy Scenarios 2095 2085 2075 2065 2055 60% 60% 60% 60% 50% 50% 50% 50% 40% 40% 40% 40% 30% 30% 30% 30% 20% 20% 20% 20% 100 2095 2085 2075 2065 2055 2095 2085 2075 2065 2055 2045 80% 2045 2035 200 2035 300 2025 400 2025 500 2015 600 2015 700 2005 Coal 2005 2095 2085 2075 2065 2055 2045 2035 2025 2015 2005 2095 2085 2075 2065 2055 2045 2035 2025 2015 2005 2095 2085 2075 2065 2055 2045 80% 2045 2035 2025 2015 70% 2035 Natural gas 2005 70% 2025 80% 2035 2025 2015 70% 2015 Crude 2005 70% 2005 80% 2045 2035 2025 2015 2005 Lifecycle Efficiency % Time trends of Efficiency Nuclear and Renewables Time trends of Efficiency 80% 2095 2085 2075 2065 2035 2035 2055 2025 2025 2045 2015 2095 2085 2075 2065 2055 2045 2035 2025 2015 2005 700 600 500 400 300 200 Lifecycle efficiency (%) Primary Energy (EJ) Average of No-Policy Scenarios Average of Moderate Carbon Policy Scenarios (RCP6.0) 2095 2085 2075 2065 2055 - 2045 2095 2085 2075 2065 2055 2045 2035 2025 100 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2085 20% 2075 20% 2065 20% 2055 20% 2045 30% 2035 30% 2025 30% 2015 30% 2005 40% 2095 40% 2085 40% 2075 40% 2065 50% 2055 60% 50% 2045 60% 50% 2035 60% 50% 2025 70% 2015 70% 2005 70% 60% Nuclear and Renewables 2015 Coal 2005 80% 70% 2005 Lifecycle Efficiency % Primary Energy (EJ) Natural gas 80% 2005 Crude 80% There is no clear relationship between lifecycle efficiency and level of carbon price. 80% 2095 2085 2075 2065 2035 2035 2055 2025 2025 2045 2015 2095 2085 2075 2065 2055 2045 2035 2025 2015 2005 700 600 500 400 300 200 Lifecycle efficiency (%) Primary Energy (EJ) Average of No-Policy Scenarios Average of Moderate Carbon Policy Scenarios (RCP6.0) Average of High Carbon Policy Scenarios (RCP4.5) 2095 2085 2075 2065 2055 - 2045 2095 2085 2075 2065 2055 2045 2035 2025 100 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2085 20% 2075 20% 2065 20% 2055 20% 2045 30% 2035 30% 2025 30% 2015 30% 2005 40% 2095 40% 2085 40% 2075 40% 2065 50% 2055 60% 50% 2045 60% 50% 2035 60% 50% 2025 70% 2015 70% 2005 70% 60% Nuclear and Renewables 2015 Coal 2005 80% 70% 2005 Lifecycle Efficiency % Primary Energy (EJ) Natural gas 80% 2005 Crude 80% There is no clear relationship between lifecycle efficiency and level of carbon price. 80% Complementary roles of (i) efficiency, (ii) energy conservation, and (iii) substitution of fossil resources with decarbonized energy to achieve climate change mitigation goals. 2095 2085 2075 2065 2035 2035 2055 2025 2025 2045 2015 2095 2085 2075 2065 2055 2045 2035 2025 2015 2005 700 600 500 400 300 200 Lifecycle efficiency (%) Primary Energy (EJ) Average of No-Policy Scenarios Average of Moderate Carbon Policy Scenarios (RCP6.0) Average of High Carbon Policy Scenarios (RCP4.5) 2095 2085 2075 2065 2055 - 2045 2095 2085 2075 2065 2055 2045 2035 2025 100 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2005 2095 2085 2075 2065 2055 2045 2035 2025 2015 500 450 400 350 300 250 200 150 100 50 - 2085 20% 2075 20% 2065 20% 2055 20% 2045 30% 2035 30% 2025 30% 2015 30% 2005 40% 2095 40% 2085 40% 2075 40% 2065 50% 2055 60% 50% 2045 60% 50% 2035 60% 50% 2025 70% 2015 70% 2005 70% 60% Nuclear and Renewables 2015 Coal 2005 80% 70% 2005 Lifecycle Efficiency % Primary Energy (EJ) Natural gas 80% 2005 Crude 80% Crude NG Coal 1.2 Efficiency(T) 2080 Nucl. & Renew BAU Global lifecycle efficiency (S + T) Technological efficiency (T) Total energy Aggressive policy & advanced tech (without CCS) Global lifecycle efficiency (S + T) Technological efficiency (T) 1.0 0.8 Lifecycle effic ency 0.6 2080 2060 2040 2020 2080 2060 2040 2020 2080 2060 2040 0.4 2020 Efficiency 2060 Year 2040 2020 2080 2060 2040 2020 Structural shifts dampen improvements in efficiency due to technological progress Year Scenario - ADV_ALL_NoCCS_RCP4.5 FIG 4: Depiction of the change Eff(S+T): in lifecycle Eff(S+T): Scenario energy - Referenceefficiency over time for structural plus technological Eff(T): Scenario - ADV_ALL_NoCCS_RCP4.5 shifts (solid lines) and for only technological (dashed lines). Eff(T): Scenario -shifts Reference While technological advancements at each energy conversion process and end-use lead to important reductions in primary energy use, structural shifts in how energy is used dampens the gains in lifecycle efficiency. Developing countries have a higher lifecycle efficiency on average than developed countries Coal Crude NG Nucl. & Renew Total Energy No Policy (Ref tech) No Policy (Adv tech) Moderate Policy (NoCCS, Ref tech) 2095 2095 2095 2095 Moderate Policy (NoCCS, Adv tech) 2095 Moderate Policy (CCS, Ref tech) Moderate Policy (CCS, Adv tech) Aggressive Policy (CCS, Ref tech) Aggressive Policy (NoCCS, Adv tech) Aggressive Policy (CCS, Adv tech) Coal Crude NG Nucl. & Renew Total Energy No Policy (Ref tech) No Policy (Adv tech) Moderate Policy (NoCCS, Ref tech) 2050 2050 2050 2050 Moderate Policy (NoCCS, Adv tech) 2050 Moderate Policy (CCS, Ref tech) Moderate Policy (CCS, Adv tech) Aggressive Policy (CCS, Ref tech) Aggressive Policy (NoCCS, Adv tech) Aggressive Policy (CCS, Adv tech) 0.4 0.5 0.6 0.7 0.30 0.35 0.40 0.45 0.50 0.55 0.65 0.70 0.75 0.80 0.28 0.32 0.36 0.35 0.40 0.45 0.50 0.55 Efficiency Developing countries have a higher lifecycle efficiency on average than developed countries. This is due to both structural and technological differences. Developed Developing Carbon Intensity – CO2 emissions per unit of useful energy Energy Resource CI (ton CO2/PJ) 2100 ALL ENERGY 2005 2100 2005 COAL 2100 NG 2005 2100 300 CRUDE 2005 350 250 2005 200 150 100 50 2100 (BAU Scenario) Carbon Intensity – CO2 emissions per unit of useful energy vs. final energy Energy Resource CI (ton CO2/PJ) 250 2100 ALL ENERGY 2005 2100 2005 COAL 2100 NG 2005 2100 300 CRUDE 2005 350 CI – CO2/PJ(final energy) CI – CO2/PJ(useful energy) 2005 200 2100 (BAU Scenario) 150 100 50 • Changes in CI(useful energy) over time are more dramatic than changes in CI(final energy) • Quantum of differences between the two CIs varies across energy resources Carbon Intensity – CO2 emissions per unit of final energy vs. useful energy Energy Resource CI (ton CO2/PJ) 250 2100 ALL ENERGY 2005 2100 2005 COAL 2100 NG 2005 2100 300 CRUDE 2005 350 CI – CO2/PJ(final energy) CI – CO2/PJ(useful energy) 2005 200 150 2100 (BAU) 2100 (Aggressive Policy without CCS) 100 50 • Carbon price has a higher impact on CI(useful) than CI(final) in case of coal Implications on GHG Emissions Total Energy, 2005 lifecycle energy efficiency = 38.9% lifecycle CI = 140.0 tCO2/PJ(useful) Crude-e 400 Gas-e Coal-syngas 300 Crude Gas Biomass Coal 100 Nuc & renewable to e 200 Coal-e Energy Pathway CI (tCO2/PJ) Total CI, 2005 0 0 200 400 600 800 1000 Primary Energy (EJ) 1200 1400 1600 Global primary energy use and energy pathway lifecycle carbon intensity in 2005 Implications on GHG Emissions Total Energy, 2005 lifecycle energy efficiency = 38.9% lifecycle CI = 140.0 tCO2/PJ(useful) Crude-e 400 Gas-e Coal-syngas 300 Crude Nuc & renewable to e 100 Gas Biomass Coal 200 Coal-e Energy Pathway CI (tCO2/PJ) Total CI, 2005 0 0 200 400 600 800 1000 Primary Energy (EJ) 1200 1400 1600 Implications on GHG Emissions 400 300 100 Crude Coal-e Gas Coal CTL Gas-e 200 Nuc & renewable to e 0 Coal-syngas Crude-e BAU (2100) Total Energy lifecycle energy efficiency = 45.4% lifecycle CI = 104.0 tCO2/PJ (useful) Biomass Nuc & renewable to e Crude Gas Biomass Coal 200 100 Energy Pathway CI (tCO2/PJ) Crude-e Gas-e Coal-syngas 300 Coal-e Energy Pathway CI (tCO2/PJ) Total Energy, 2005 lifecycle energy efficiency = 38.9% lifecycle CI = 140.0 tCO2/PJ(useful) 400 Gas-H2 GTL Coal-H2 Total CI, BAU in 2100 Total CI, 2005 0 0 200 400 600 800 1000 Primary Energy (EJ) 1200 1400 1600 0 200 400 600 800 1000 Primary Energy (EJ) 1200 1400 1600 Implications on GHG Emissions 400 300 100 Crude Gas Coal-e Coal CTL Gas-e 200 Nuc & renewable to e 0 Coal-syngas Crude-e BAU (2100) Total Energy lifecycle energy efficiency = 45.4% lifecycle CI = 104.0 tCO2/PJ (useful) Biomass Nuc & renewable to e Crude Gas Biomass Coal 200 100 Energy Pathway CI (tCO2/PJ) Crude-e Gas-e Coal-syngas 300 Coal-e 0 600 800 1000 Primary Energy (EJ) 1200 1400 1600 0 200 400 600 800 1000 1200 Primary Energy (EJ) 1400 1600 Total CI - Scenario: aggressive carbon policy, No CCS, advanced technology advancement 400 300 RCP4.5 Advanced Tech no CCS (2100) Total Energy lifecycle energy efficiency = 40.0% lifecycle CI = 37.4 tCO2/PJ 200 100 Nuc & renewable to e Crude Gas 400 0 0 200 400 600 800 1000 Primary Energy (EJ) Gas-e 200 Biomass 0 Energy Pathway CI (tCO2/PJ) Energy Pathway CI (tCO2/PJ) Total Energy, 2005 lifecycle energy efficiency = 38.9% lifecycle CI = 140.0 tCO2/PJ(useful) 400 Gas-H2 GTL Coal-H2 Total CI, BAU in 2100 Total CI, 2005 1200 1400 1600 Thank You Effects of Structural Change and Climate Policy on Long-Term Shifts in Lifecycle Energy Efficiency and Carbon Footprint Gouri Shankar Mishra (gsmishra@ucdavis.edu) Sonia Yeh, Gouri Shankar Mishra, Geoff Morrison, Jacob Teter (University of California at Davis) Raul Quiceno (Shell Research Limited) Kenneth Gillingham (Yale School of Forestry & Environmental Studies)