1. 1 1 Draft chapter 5. Energy balances Ann Christin Bøeng Division for energy and environmental statistics Statistics Norway

2. 2 Disposition for the presentation Working group for the energy balance chapter Writing guidance for the chapter from UNSD and the OG- Secretariat Structure in the draft chapter 5. Details about the structure and content- I would like to get feedback on the structure and the content of the chapter. Should more be added or anything be changed?

3. 3 Working group for the energy balance chapter (Those who have volunteered to contribute) Statistics Norway (coordinator) IEA Canada/Statistics Canada China/ National Bureau of Statistics of China Cameroon / Ministère de l'Energie et de l'Eau (MINEE) Congo / Ministère de l'Energie Ghana / Energy Commission of Ghana UK/UK Department of Energy and Climate Change (DECC) UNSD

4. 4 Guidance for chapter 5 provided by UNSD /OG-secretariat Chapter 5 Compilation of energy balances This chapter will provide practical guidance for the compilation of energy balances. In particular, it will describe how to use the data items presented in Chapter 6 of IRES (and discussed in Chapter 4 of the ESCM) in the balances. Data editing and the validation rules inherent to the energy balances will also be addressed here. This chapter will also discuss secondary data sources that can be used for the compilation of balances when only partial data items are available, as well as associated data estimation and reconciliation methods. A. Commodity balances How to compile commodity balances from the data items in Chapter 4. In the absence of some of the data items, this section will describe secondary sources that can be used for compiling the commodity balances B. Energy Balances How to go from commodity balances to energy balances; description of the methods for setting the value of primary energy (physical energy content vs. partial substitution methods), use of calorific values; C. Validation rules

5. 5 Actual structure of the chapter Introduction A. General information about the energy balance B. Energy products to be included in the energy balance C. Flows in the energy balance and possible data sources D. Data estimation and reconciliation E. Conversion of energy commodity balances to a common unit F. Other B, C and D is the most important parts. An energy balance consists of a combination of energy products which is structured according to supply, transformation and use, as described in B and C. The quality of the balance depends on the data sources, and methods for estimating and reconciliation of the figures. (part D)

6. 6 Data sources The chapter is in large degree based on chapter 8 in IRES; and also some of the other chapters in IRES. The IEA/Eurostat “Energy statistics manual” is also used - I have tried to avoid too much overlap of information, but it is difficult to completely avoid any overlap. Then the chapter would not become so meaningful to read. Some more practical information is added, compared to the information available in IRES. Possible data sources are also mentioned, but I have assumed that more complete information about sources and data collection will be available in chapter 4 in ESCM.

7. 7 Details about the content Introduction: What an energy balances is, and purpose with the balance. Important purposes and use of the balance. A. General information about the energy balance Contents and detailing level of an energy balance. Advantages with organizing the data in a database, that can serve many purposes. What kind of products to include in the balance Recommendation of the use of ”net calorific value” Physical energy content method vs. Partial substitution method.

8. 8 Part A (continues) and part B Explanation of difference between energy commodity balance and energy balance. Territorial principle. B. Energy products to include in the balance. Part B describes groups of energy products that should be included in the balance, such as oil / oil products and gas, Coal and coke, Electricity and heat, and biomass and waste. The purpose is to present which products to include in the balance, general information about data sources for energy production (or methods for calculate it). Are the products primary or secondary, renewable or not renewable. Several point could be included, For instance more about calculation of different kind of gases

9. 9 Table B.1. Oil and oil products Primary oil products Crude oil including condensate / Natural gas liquids / Other hydro carbons Secondary products, inputs to refineries: Additives/blending components/Refinery feedstocks Secondary oil products: Liquefied gases (ethane, liquid petroleum gases) Kerosene (kerosene type jet fuel, other kerosene) Residual fuels (with low and high sulphur content) Gasoline (naphtha, Gasoline type jet fuel, Unleaded gasoline, Leaded gasoline) Gas and diesel oils (transport diesel, heating and other gas oil) Refinery gas (usually produced and used as fuel in refineries) Non-energy products (White spirit + SBP, Lubricants, bitumen, petroleum coke) Backflows to refineries remains to be described

10. 10 B.2. Primary and derived coal products Primary coal products (to be included in “primary production in the energy balance) Coking coal, Other bituminous coal and anthracite, Sub-bituminous coal, Lignite/brown coal, Peat Derived fuels: Patent fuel, Coke–oven coke, Gas coke, Briquettes, Gas-works gas, Coke oven gas, Blast furnace gas, Oxygen steel furnace gas There are some open questions. We have for instance no clear guidance for how to calculate coke used as input in production of blast furnace gas. Different countries and institutions uses different thermal efficiency coefficient for the coke

11. 11 B3. Sources for electricity and heat Sources for renewable electricity: Hydro, wind thermal power, solar, tide, wave power, biomass, geothermal energy Sources for non-renewable electricity: Burning combustible fuels such as coal, gas and oil. Nuclear energy. Sources for renewable heat/district heating: Geothermal and solar energy, biomass, renewable waste. Sources for non-renewable heat/district heating: Burning combustible fuels such as coal, gas, oil and non-renewable waste. Nuclear energy. Energy from heat pumps, and district cooling is mentioned specially, This is not yet is a part of reporting requirements to international organizations, and usually not a part of the balances, but it can give a significant contribution to energy supply.

12. 12 Table B4. Biomass and waste Solid BiofuelsLiquid biofuelsBiogasesWaste Fuel woodBiogasoline Biogases from anaerobic fermentation Industrial waste Wood pelletsBiodieselLandfill gasMunicipal waste BagasseBio jet keroseneSewage sludge gas Animal wasteOther liquid biofuels Other biogases from anaerobic fermentation Black liquor Biogases from thermal processes Other vegetal materials and residues

13. 13 Part C. Flows in the energy balance and possible data sources An energy balance is included in part C, to give the readers an impression of how it should look like. Data is not filled in, but it will be filled in for a country, as an example. The balance doesn’t have a column for ”of this renewable”, as recommended in IRES, but it could be added. We need however to know how to calculate the renewable share of consumption of electricity and heat in the balance. – (Could need some advise for instance from Eurostat on that) Part C gives also some brief description about the different balance posts, what to include here, and general information about possible data sources.

14. 14 Part C continues Transfer is one of the more complicated flows, because some countries do not include it (such as Norway, but we plan to add it) while others include different things here. - Eurostat consider the transformation of hydro and wind to electricity as interproduct transfer, while IEA don’t. What should be recommended? Transformation processes: The list of different types of transformation processes mentioned in IRES are long, but we have proposed that countries only include the processes that are relevant for the country, in their balance. Stock changes: This should reflect the real changes in stocks of energy products in the country (and not be a place to put ”statistical differences”)

15. 15 D. Data estimation and reconcilition Detailed description of data sources and data collection will be included in chapter 4. Part D is meant to give advise for what to do when data is missing, or when data from different data sources not are consistent, or when data required for the balance are more detailed than the actual available data. It is seldom you find precise data for all required data in the balance, unless the balance is very aggregated. However, reporting obligations from among other things, international organizations, or for compilation of indicators, implies a need for detailed data. When detailed data is not available, aggregated data could be distributed. For instance by production figures or persons employed by industry, and estimate for energy use per person or produced unit by industry.

16. 16 Part C (continues) and part E When data from different sources not are consistent, it is necessary to evaluate what is most reliable, use this, and sometimes adjust the other data to make it fit into the system. E. Conversion of energy balance to a common unit. We recommend countries to use their national conversion factors for converting for instance oil data in tonnes to a joint unit like PJ. Part E also sais something about the uncertainty of figures measured in a joint unit as PJ, and so-called ”useful energy”. Energy balances are mostly presented as supplied energy, but in reality, a lot of energy is lost due to that heating equipment, engines etc. cannot utilise all the potential energy in oil, gas etc. Part E is short, and could be extended.

17. 17 F. Other This part sais something about timeliness, and preliminary versus final balances. Country practices remains to be included. However, it is difficult to include an entire country practice, because many of the practices on energy balances are on several pages. The plan is to include parts of different practices, where it could be meaningful to include it. If a country has a good method for measuring for instance bunkers, or for organizing the data input to the balance, it could be included in parts of the chapter where these things are described. Complete practices are available electronic on UN web-site, and “links” to these practices could be added.

18. 18 Thank you for your attention Questions or comments to the chapter are welcome. - Also written comments during, or after the meeting. Contact information: Ann Christin Bøeng, E-mail:abg@ssb.no