IRES, Chapter 8 Energy Balance

1. IRES, Chapter 8Energy Balance Vladimir Markhonko United Nations Statistics Division The Oslo Group on Energy Statistics Fifth meeting, Cork, Ireland, 1-4 February 2010

2. This chapter is based on the conclusions of the 4th Oslo Group meeting; the meeting of the sub-group on Energy Balance and the first virtual meeting. • Additional suggestions were received and some were incorporated.

3. Concept of energy balance An overall energy balance (referred to as “energy balance” in the rest of the chapter) is an accounting framework for compilation and reconciliation of data on all energy entering, exiting and used within the national territory of a given country during a reference period. Do we need a more detailed description of commodity balances? If Yes, where in IRES?

4. The purpose and scope of an energy balance Purposes are listed in para. 8.3. Is that para. OK? The scope of an energy and balance is determined, inter alia, by the territory, product and flow boundaries: • Territory boundary – defined by the boundary of the national territory of the compiling country (see chapter 2 for details); • Product boundary – defined by the scope of all energy products shown in the balance columns (see chapter 3 for details); • Flow boundary – defined by the scope of energy flows (see chapter 5 for details) shown in the balance rows.

5. The scope of energy balance does not include: • Passive energy such as heat gain of building and solar energy falling on the land to grow crops, etc.; • Energy resources and reserves (OG4 decision); • Extraction of any materials not included in primary energy production; • Non-energy products not used for energy purposes (e.g., waste and wood are covered in energy balance only to the extent they are used for energy production and not when used for other purposes).

6. Sequencing of columns in the aggregated version of an energy balance. While different columns (except “Total”) represent various energy products, they are generally grouped and sequenced in a way to add to the analytical value of the balance. It is recommended that: • Groups of energy products are mutually exclusive and are based on SIEC (e.g., close substitutes might be grouped together, such as Coal and Peat, Crude oil and Oil products as their common features are that they are extracted from limited resources, and that they emit environmentally damaging substances when burned; these might form a separate aggregate) • Column “Total” follows the columns which reflected particular energy products, • After the column “Total”, additional subtotals such as “non-renewables” and/or “renewables” are inserted and their coverage is explained.

7. Sequencing of rows in the aggregated version of an energy balance. It is recommended that an energy balance contains three main blocks of rows as follows: Top block - flows representing energy entering and leaving the national territory as well as stock change to provide information on supply of energy on the national territory during the reference period; Middle block – flows showing how energy is transformed, transferred, used by energy industries and lost in distribution and transmission; Bottom block – flows reflecting final energy consumption and non-energy use of energy products. A separate row should be reserved for statistical difference.

8. The format of an aggregated energy balance It is recommended that countries follow as much as possible the standard format/template of an (aggregated) energy balance as presented in table 1.

9. Top block Total energy supply= + Primary energy production + Import of primary and secondary energy - Export of primary and secondary energy - International (aviation and marine) bunkers • +/- Change in energy stocks The production of primary energy products is usually an activity of the energy industries. However, some primary energy products can be generated by industries other than the energy industries as autoproduction.

10. The middle block • The main purpose of the middle block of an energy balance is to show: energy transformation, transfers, losses, and the energy industry own use. • The energy transformation describes the processes that convert an energy product into another energy product which is in general more suitable for specific uses. The transformation of energy is normally performed by energy industries.

11. Electricity plants Combined heat and power plants Heat plants Coke ovens Patent fuel plants Brown coal briquette plants Coal liquefaction plants Gas works (and other conversion to gases) Blast furnaces Peat briquette plants Natural gas blending plants Gas to liquid (GTL) plants Oil refineries Petrochemical plants Charcoal plants Other transformation processes Waste plants [this was suggested during the consultation with the subgroup on energy balances. The Oslo Group is invited to comment] It is recommended that countries show in their balances, as applicable, energy transformation by the following categories of plants [as proposed by InterEnerStat]:

12. Iron and steel Chemical and petrochemical Non-ferrous metals Non-metallic minerals Transport equipment Machinery Mining and quarrying Paper, pulp and print Food and tobacco Wood and wood products (Other than pulp and paper) Textile and leather Construction Industries not elsewhere specified Bottom blockFinal energy consumers are grouped into three main categories: Industry, Transport and Other.Industry will be subdivided as follows:

13. Accuracy requirements  Should be clearly described in country energy statistics metadata. As a general guideline, it is recommended that national and international statistical offices consider attempting to assess the sensitivity of each major published aggregate in their energy statistics to errors of plus and minus 5%, or 10% in the less reliable components. [any comments on this?]  Some countries may use stricter criteria.

14. Estimation of missing data It is recommended that countries estimate missing data in order to maintain the integrity of the balance. As a general guideline, the estimates should be created based on the following principles [to be further elaborated] . Details on good practices should be in ESCM. Reconciliation[to be further elaborated].

15. Thank You very much for your kind attention! Now let’s go back to the text of chapter 8 and discuss it