1 Presentation to 6 th Meeting of Oslo Group on energy Statistics South Africa: Energy Accounts Robert Parry National Accounts 2─5 May 2011, Canberra, Australia

2 Supply and Use Tables The physical flows are captured in the flow accounts structure, and the supply and use tables format is used. Energy Accounts SEEA 2003 and SEEA-E The international methodology as set out in the system of Integrated Environmental and Economic Accounting 2003 is followed with regard to the definition of natural resource accounting. SIC The energy accounts uses the Standard Industrial Classification of all Economic Activities (SIC) as per the System of National Accounts (SNA).

3 Physical flow accounts In the development of the physical flow accounts, in the format of the 1993 System of National Accounts, the energy balances of the Department of Energy is used. The physical units are converted to Terajoules to give total energy use and total energy supply. Energy Accounts Four types of physical flows are captured: Natural resource extraction – Coal, crude oil, and gas. Ecosystem inputs – i.e. oxygen combustion. Products – energy fuels such as petrol and diesel. Residuals – generated by the use of fossil fuels.

4 Supply Table 1 Crude oil 2 Coal and Lignite 3 Petroleum products 4 Gas to users 5 Electricity 6 Nuclear power 7 Hydropower 8 Renewables and waste Total energy supply Units of measurement Terajoules (TJ) a. Domestic production b. Imports c. Total supply (a+b) Eight columns: Changes were made to the SEEA framework. Excluded: Natural gas, steam and hot water, wood, and straw and waste Included: Nuclear power, hydropower, and renewables and waste.

5 Use Table 1 Crude oil 2 Coal and Lignite 3 Petroleum products 4 Gas to users 5 Electricity 6 Nuclear power 7 Hydropower 8 Renewables and waste Total energy use Units of measurement a.Intermediate consumption by industries b.Inventory changes c.Total private consumption d.Exports e.Losses in distribution f. Total use (a+b+c+d+e) Intermediate consumption by industries includes: Agriculture and fishing Mining and quarrying Manufacturing Electricity, gas and steam production Construction Transport, storage and communication Commercial sector (wholesale and retail traders, financial intermediates and public services). No further breakdown is done in these categories.

6 Energy resources: Energy resources Coal = main energy supply source and provides 65% of primary energy needs (South Africa 6 th largest holder of coal reserves) The remaining sources of supply are: Oil Renewable resources (wind, solar, biomass and wave power) Nuclear power Hydropower Gas

7 Classification of energy sectors: Classifications Industrial – uses largest amount of energy and is divided in eight sub sectors: Chemicals and petrochemicals Food and tobacco Iron and steel Mining Non-ferrous metals Non-metallic minerals Pulp and paper Other Residential – are classified into urban and rural: Urban – use modern fuels, i.e. electricity for cooking, water heating, space heating, and lighting. Rural – mainly traditional fuels, i.e. wood, dung, and bagasse. Transitional fuels include coal, paraffin and liquid petroleum gas (LPG). Transport – together with residential 2 nd and 3 rd largest users of energy: Commercial Agriculture

8 Final sectoral consumption of energy in Terajoules (TJ) Sectoral energy consumption

9 Standard Industrial Classification of all Economic Activities SIC Codes Major Division4Electricity, gas & water supply Division41Electricity, gas, steam & hot water supply Major Group411Production, collection & distribution of electricity Group4111Production, collection & distribution of electricity Sub Group41111Generation 41112Distribution of purchased electric energy only 41113Generation for own use Classifications

10 Data collection In order to compile the accounts, data is obtained from Statistics South Africa in the form of a survey, with 22 power stations complying monthly. Questions: 1. Electricity generated in kilowatt-hours (kWh). 2. Electricity consumed in power station(s) and energy storage systems in kWh. 3. Net quantity of electricity generated and sent out from power station(s). 4. Purchases outside the Republic of South Africa, e.g. Mozambique (specifying supplier). 5. Consumed in synchronous condenser (CSO), Department of Water Affairs (DWA) and Assets” (Applicable to the Electricity Supply Commission [Eskom]).

11 Data sources Department of Energy (DoE)Wind, solar, natural gas liquid, natural gas, and coal (except imports). Oil companiesElectricity used in petrochemical industry and by oil refineries. South African Coal and Oil (Sasol) Petroleum products from non-crude sources and gas works. Electricity Supply Commission (Eskom) Electricity production and consumption (excluding electricity produced by municipalities) National Energy Regulator of South Africa (NERSA) Electricity exports, imports and own use, pumped storage, distribution losses, output from public plants and auto-producing plants, electricity production and consumption South African Revenue Services (SARS) Imports and exports of oil and coal. Mittal SteelImports of coking coal, production and consumption of blast furnace gas from iron and steel. South African Petroleum Industry Association (SAPIA) Oil consumption or sales data by sector. The Department of Energy uses the following sources of data to compile the energy balances:

12 In order for the energy balances and energy accounts to be useful as a reliable information source, quality checks need to be done and the integrity of data need to be verified. This is currently done manually. Data quality assurance & dissemination The energy account is currently only published as a discussion document, pending the formalizing of the institutional arrangements between the Department of Energy and Statistics South Africa.

13 The main energy resources in the South African economy are coal, oil, gas, nuclear power, hydropower and renewable sources such as wind, solar energy, bio-mass and wave power. Uses of energy accounts / statistics The significance of the energy accounts are that they are of considerable interest in their own right, especially for countries heavily involved in oil mining and processing. Every economy in the world depends on the availability of oil and other energy sources. The use of energy is critical to the economy, because almost all economic activities are connected either directly or indirectly to the consumption of energy. The environmental accounts, specifically in the case of energy accounts, are crucial in a sense that they reflect how significant our environment is in the economy. In South Africa, energy is sourced mainly from coal. The supply and use (in physical units) of energy should be reflected in a way that is understandable from its raw production to the residuals. Energy accounts provide information about the levels of direct energy consumption of industries regarding their production processes and private households. These accounts can also provide information on changes in the energy requirements of particular industries in relation to their output. This shows the macro level impacts of new technologies, and eco-efficiency measures and changes in behaviour. They are also an indispensable prerequisite for reliable estimates of air emissions related to energy consumption. The accounts are currently not official, there are some institutional arrangements that need to be formalised with partners in the energy sector to achieve this.

14 Energy statistics and Energy Accounts could provide useful information in planning and scenario planning. Questions such as these could be answered: Uses of energy accounts / statistics What are the levels of energy consumption in South Africa? What are the levels of energy input (both direct and indirect) into the various categories of final demand (private household consumption, exports, etc.)? What is the energy intensity of particular industries taking into account both direct and indirect energy inputs? For future predictions and scenarios, what are the changes expected in the energy requirements of particular industries in relation to their output?

15 Uses of energy accounts / statistics Thank you! Robert Parry