The needs and possibilities for improving the energy balance system

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The needs and possibilities for improving the
energy balance system

• Ann Christin Bøeng, Statistics Norway

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Disposition of this presentation

• Purpose with the energy balance
• Why do we need an updated manual on energy
  balances?
• Challenges in the work with the energy balance
• Is it possible to merge information from the
  energy accounts and energy balance into one table

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Purposes with the energy balance

• Show in one table the overall picture of energy
  production, conversion and consumption for each
  fuel utilised in the country
• Provide background information to the countries
  energy planning - Give a good picture of the
  countries energy situation - Show changes over
  time.
• Basis for emission calculations
• Basis for calculations of value figures for
  energy in the National Accounts.
• Energy research and basis for preparing energy
  indicators
• Public information to media etc.

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Main principles in the energy balance
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The needs for a new manual on energy balances

• UNs manual for how to set up the energy balance
  is old, and needs a refreshment
• A more user-friendly and easy available manual
  would probably increase the use of it.
• There are just as many variants of the energy
  balance as the number of countries that prepare
  this. Some of the differences are due to lack of
  knowledge or that the international
  recommendations not are clear.

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Different countries- different needs

• Needs for guidance differ for different countries
• Most developed countries have established a
  system for preparing the energy balance.
• Not all developing countries have an energy
  balance, or energy statistics at all.
• While many developed countries only needs some
  minor quality improvement in their energy
  statistics, some countries have to start from
  scratch
• These countries have the most urgent need for
  guidance and will probably be the most active
  user of a new manual.

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• A new manual for energy balance should be
  prepared in a way that all countries can use it -
  independent of their background knowledge of
  energy statistics.
• This means, it must include both basic
  information for countries that not have a energy
  statistics system at all..
• ..and recommendations for countries that already
  have a system, but could need some advise in
  order to improve the quality.
• Include best practices on problematic issues in
  the energy balance.
• Preferably cover several purposes, as for
  emission calculations, National accounts, energy
  planning etc.

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Energy balance vs energy accounts (from a
Norwegian point of view)

• Statistics Norway publish both the energy balance
  and the energy accounts.
• Both show supply, transformation and consumption
  of each fuel, and they are presented in the same
  units
• There are some differences in the principles and
  definitions
• Energy balance follows international standards
• Energy accounts follows the energy consumption in
  Norwegian economic activity in the same way as
  the National Accounts.

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Background for the Energy accounts

• Closer link between the energy balance and the
  National Accounts.
• Originally a claim from the Research Department
  in Statistics Norway.
• Necessary for emission calculations by sector.
• Can be used for preparing energy indicators,
  based on coupling of the energy accounts and
  National accounts.

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Main differences in energy accounts and energy
balance

• Energy balance excludes energy used in Norwegian
  vessels etc. abroad while the energy accounts
  includes this.
• Foreigners use of energy in Norway are included
  in the energy balance, but excluded in the energy
  accounts.
• Energy used as raw materials in industry is put
  on a separate line in the energy balance, but
  added with other energy consumption in the energy
  accounts
• Energy for consumption purposes is put on the
  transport sector in the balance, but on the
  sector that actually use it in the energy accounts

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The users frustrations

• Most figures are equal in these balances, but
  differences in principles and methods imply that
  some important figures differ.
• The users dont know which of the two balance
  systems that are most relevant for them. Its
  often random what they use.
• Several users of the energy balance would prefer
  one single table where information from these
  systems are integrated.
• The point with the two systems are to satisfy
  several needs. By merging the information, you
  will cover several needs in one table, and also
  avoid the users confusion (hopefully)

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• From our experiences we know that many are very
  interested in energy consumption by purpose, and
  the split between stationary consumption, energy
  for raw materials and energy for transport.
• But they also wants to know where, and in which
  sector the consumption for different purposes
  takes place.

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Merging energy accounts and energy balance

• Our suggestion for maintaining information from
  both these balances in one table (very simplified
  model)

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Explanation of the table

• The upper rows in the table illustrate the energy
  account approach.
• The lower parts of the table show energy used for
  transport and energy used as raw materials
  separate, as the energy balance does, but by
  sector.
• Differences in territorial boundaries affects
  only a few figures for foreign shipping, air
  traffic and fishing. Could be covered by adding
  some additional rows in the table, or in a
  separate smaller table.
• A more detailed plan and discussion for how to
  merge these tables is available in a paper on the
  ocg-web-site.

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Energy balance quality depends on more than
principles

• The quality on the energy balance depends a great
  deal on the primary energy statistics, as figures
  for production, imports, exports.
• Consumption in some user groups are more
  problematic than other f.ex.
• - Consumption in the service sector (often
  calculated as a rest)
• - The split between energy used for transport
  domestic and abroad.
• - Consumption for transformation purposes in
  thermal power plants (often calculated).

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The measuring problem of renewable energy and
energy technologies.

• Renewable energy sources and technologies (f.ex.
  biomass, solar energy and heat pumps)
• Biomass is in large degree a non-commercial
  energy bearer, and difficult to measure.
• Solar energy and energy from heat pumps is
  difficult to measure. Should it be included in
  the energy statistics or not, and is it possible
  to find good methods for measuring this?

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Challenges in oil and gas statistics

• Different classifications, aggregation levels and
  conversion factors.
• How should for example liquid petroleum gas (LPG
  ), petrol coke or NGL be classified ?
• Oil products The basis unit are tonnes, but is
  converted to a joint unit in the energy balance,
  on basis of a theoretical energy contents.
• The theoretical energy contents vary between
  different oil fields, oil products, countries and
  organizations.
• Natural gas The figures depend on if gross or
  net calorific value is used. The difference is
  about ten per cent.

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How to improve input data and methods ?

• As already mentioned in earlier presentations
  Exchange experiences and best-practices. Utilize
  the competence from each country
• Use the electronic discussion forum for the Oslo
  group more active.
• Writing drafts that can be used as a contribution
  for a new manual. For example describing own
  system and advantages / drawbacks with this.
• We could also need views and advices from
  countries that dont set up the energy balances,
  but intend to do that.

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• Our intention is to implement improvements in the
  energy balance system at the same time as we have
  to adapt it to the revised classification for
  economic activity (revised NACE / ISIC). A good
  opportunity also for other to make changes ?
• Thank you for your
  attention
• Contact information Ann Christin Bøeng,
  Statistics Norway
• E-mail abg_at_ssb.no Phone [phone]