1. 1 1 Definition of Primary and Secondary Energy Ms. Sara Øvergaard, Advisor, Statistics Norway 4th meeting of the Oslo Group on Energy Statistics, 2-6 February 2009, Ottawa, Canada

2. 2 Current UN definition Concepts and Methods in Energy Statistics, UN, 1982. “Primary energy should be used to designate those sources that only involve extraction or capture, with or without separation from contiguous material, cleaning or grading, before the energy embodied in that source can be converted into heat or mechanical work.” “Secondary energy should be used to designate all sources of energy that results from transformation of primary sources”

3. 3 OECD/IEA/Eurostat, Energy Statistics Manual, Paris, 2005. The manual does not provide a formal definition, but it explains the related concept of primary energy commodities “Energy commodities are either extracted or captured directly from natural resources (and are termed primary) such as crude oil, hard coal, natural gas, or are produced from primary commodities.” “Secondary energy comes from the transformation of primary or secondary energy.”

4. 4 Do we need definitions on primary and secondary energy products? The concept of primary and secondary energy is used especially in energy statistics in the course of compilation of energy balances –To avoid double counting, it is important to be able to separate new energy entering the system (primary) and the energy that is transformed within the system (secondary) Useful in –energy planning when developing long-range policies –energy analysts who are concerned with broader energy or environmental issues

5. 5 International Recommendation on Energy Statistics Chapter 3. Standard International Energy Classification ”IRES should contain a clear and internationally agreed definition of primary and secondary energy. This will affect, among other things, the measuring and recording of energy flows in the energy balances.” ”SIEC will provide a clear identification of the energy sources/carriers as primary/secondary”

6. 6 Problem The classification of energy commodities as primary or secondary is not consistent between the OECD/IEA/EUROSTAT manual and the UN manuals The main differences relates to the commodities electricity and heat Classifications is not always consistent with definitions The classification is sometimes founded on the type of source (natural source vs non natural source, renewable vs non renewable source) or on the activity/process involved in making the energy commodity (tranformation/extraction/capture)

7. 7 Example: Classification of electricity Hydro, Wind Solar, Tide Wave Nuclear fusionGeothermal and Solar Thermal Coal, natural gas, oil, renewables and waste UN manuals Primary Secondary OECD/IEA/ EUROSTAT manual PrimarySecondary

8. 8 UN Line of arguments Electricity and heat are special, because they can be generated from many sources, both primary and secondary energy sources. But electricity generated from a primary energy source is not classified as primary electricity… Primary electricity is rather classified based on wether the source the electricity is generated from is renewable or non- renewable But, if we already have a classification of electricity as renewable or non-renewable, does not the classification primary and secondary electricity become obsolete?

9. 9 OECD/IEA/EUROSTAT – Line of reasoning “Consider the energy obtained from any device driven mechanically by air or water (wind, hydro, wave, tidal power etc.). In almost all cases the mechanical force present in the moving parts of the apparatus is used to generate electricity ([…]). As there is no other outlet for the mechanical power before it is used for electricity generation, the energy form used to represent hydro, wind and tidal power is the electricity they generate. No attempt is made to adopt the mechanical energy as the primary energy form as it would have no utility in energy statistics. The primary electricity produced from these devices is sometimes referred to as non- thermal electricity as no heat is required for its production.”

10. 10 Example: Heat from Nuclear OECD/IEA/EUROSTAT manual ”Primary heat arise from…..nuclear reactors….” p.22 ”Secondary heat is obtained from nuclear fission of nuclear fuels” p.39 UN manuals ”The primary energy input to nuclear electricity should in principle be defined as the heat released by reactors…”

11. 11 How should new definitions be reformulated? A formal definition consists of three parts: The term to be defined –primary energy and secondary energy The general class to which the term belongs –energy embodied in sources and commodities The distinguishing characteristics that separate these term from all other members of its class. –Primary energy commodities is obtained from energy sources which is in its natural form cannot be used or traded for energy purposes prior to transformation/extraction or collection –Secondary energy commodities is derived from primary or secondary energy products

12. 12 Conclusions Current definitions are formulated or applied in a similar way between international organization Current definitions are not consistently used in energy statistics New definitions of primary and secondary energy for statistical purposes must take into account the logics behind the energy balance –Primary energy is energy entering the system of trade and use, from a form not usable for human activity to a form that is usable –Secondary energy is energy transformed within the system of trade and use, from a form that is usable for human activity to another usable form

13. 13 Thank you for your attention! Questions can be directed to: Ms. Sara Øvergaard Advisor Department on Energy Statistics Statistics Norway Phone: +47 21 09 49 19 Email: ara@ssb.no