The needs and possibilities for improving the energy balance system

1. The needs and possibilities for improving the energy balance system Ann Christin Bøeng, Statistics Norway

2. 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

3. 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.

4. Main principles in the energy balance

5. The needs for a new manual on energy balances • UN’s 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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

11. The user’s frustrations • Most figures are equal in these balances, but differences in principles and methods imply that some important figures differ. • The users don’t know which of the two balance systems that are most relevant for them. It’s 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 user’s confusion (hopefully)

12. 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.

13. Merging energy accounts and energy balance • Our suggestion for maintaining information from both these balances in one table (very simplified model);

14. 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.

15. 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).

16. 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?

17. 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.

18. 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 don’t set up the energy balances, but intend to do that.

19. 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@ssb.no Phone +47 21 09 47 43