Agenda point 5 energy PSUTs: Main Conceptual Choices NAMEA Task Force Meeting on Energy Accounts 6-7 May 2010 SMO

Intro one basic choice already taken: PSUT framework in addition 10 conceptual choices have to be discussed preferably, Task Force decision today! 6-7 May 2010

Overview – 10 issues Compatibility with monetary SUTs How to treat “statistical differences”? Classification of activities; including “environment”? How to treat losses? How to treat “flaring”, “venting”, “re-injections”? Classification of energy flows Measurement units How to deal with activities (e.g. plants such as refineries) owned by foreign units on the territory? Bridging items General layout of SUTs 6-7 May 2010

1 Compatibility with monetary SUTs product flows recorded in energy PSUTs = product flows recorded in monetary SUTs Three potential conflicts: 1.1 Energy industry‘s use of its own output 1.2 Representing electricity and heat produced by “autoproducers” as secondary activity production 1.3 Representation of energy products such as blast-furnace gas and coke produced as secondary output by industries typically not producing these products 6-7 May 2010

1.1 Energy industry’s use of its own output 6-7 May 2010

1.1 Energy industry’s use of its own output 100 10 10 30 10 10 30 6-7 May 2010

1.1 Energy industry’s use of its own output 115 10 10 30 15 10 10 30 6-7 May 2010

1.2 + 1.3 autoproducer’s & non-energy industries’ secondary production 6-7 May 2010

1.2 + 1.3 autoproducer’s & non-energy industries’ secondary production 6-7 May 2010

1.2 + 1.3 autoproducer’s & non-energy industries’ secondary production 6-7 May 2010

1.2 + 1.3 autoproducer’s & non-energy industries’ secondary production 6-7 May 2010

1.2 + 1.3 autoproducer’s & non-energy industries’ secondary production 6-7 May 2010

2 How to treat “statistical differences”? 6-7 May 2010

2 How to treat “statistical differences”? ..add column for “statistical differences”… A) only in Use table (+/-) B) in both, Supply and Use table only (+) 6-7 May 2010

2 How to treat “statistical differences”? 6-7 May 2010

statistical differences Option A statistical differences +/- 6-7 May 2010

Option B + + statistical differences statistical differences 6-7 May 2010

3 Classification of activities; including “environment”? 6-7 May 2010

3 Classification of activities; including “environment”? activities => columns (headings) in SUT framework economic activities: use standard ESA classifications Annex 1 (NACE); Annex 2 (final use + specific items) including “environment” (i.e. “nature”) ? ? 6-7 May 2010

4 How to treat losses? 6-7 May 2010

4 How to treat losses? First, clarify ! How actually recorded in Energy Statistics ? How should it be recorded in energy PSUTs ? => guidance in SEEA-E => compatibility with monetary SUTs 6-7 May 2010

4 How to treat losses? How actually recorded in Energy Statistics ? “Losses” is an activity ..not a flow ! = Element of the transformation block Definition in InterEnerStat: “…losses during the transmission, distribution and transport of fuels, heat and electricity. Losses also include venting and flaring of manufactured gases, losses of geothermal heat after production and pilferage of fuels or electricity” “Production of secondary gases includes quantities subsequently vented or flared...” Conclusion: product flows supplied by economic activities 6-7 May 2010

4 How to treat losses? How should it be recorded in energy PSUTs ? SEEA-E: four types “…losses of energy may occur during… extraction, distribution, storage, and transformation. Conclusion: wider scope ! 6-7 May 2010

4 How to treat losses? Options to present distribution losses in energy PSUTs ? L 20 E E S 20 electricity 100 20 20 80 electricity 20 are lost ! 6-7 May 2010

4 How to treat losses? Options to present extraction losses in energy PSUTs ? M M R crude oil (raw) 120 crude oil (raw) 115 5 crude oil (product) 100 80 20 crude oil (product) 15 15 Σ 115 115 6-7 May 2010

4 How to treat losses? Options to present storage losses in energy PSUTs ? E ∆ gas (product) 100 15 supplied from stock 95 5 added to stock 15 released to nature 6-7 May 2010

4 How to treat losses? Options to present transformation losses in energy PSUTs ? M E coal (product) 100 95 5 electricity 60 10 10 40 35 Σ 95 95 6-7 May 2010

5 How to treat “flaring”, “venting”, “re-injections”? 6-7 May 2010

5 How to treat “flaring”, “venting”, “re-injections”? Technical definitions: “flaring” = combustion of gas i.e. transformation from one energy form (gas) to another form (dissipative heat) “venting” = release of gas to the environment due to overpressure in a system i.e. product flow (gas) from economy to nature “re-injection” = occurs at extraction stage = unused extraction i.e. resource flow from nature to nature product residual 6-7 May 2010

5 How to treat “flaring”, “venting”, “re-injections”? How recorded in Energy Statistics ? “flaring” + “venting” only implicitly recorded when occurring whilst transformation from primary to secondary products (e.g. refinery) = caloric difference between primary input and secondary output not recorded at extraction stage “re-injection” not recorded 6-7 May 2010

5 How to treat “flaring”, “venting”, “re-injections”? 6-7 May 2010

6 Classification of energy flows 6-7 May 2010

6 Classification of energy flows Energy flows => rows (headings) in SUT framework SEEA: three generic types of flows: resources: from environment to economy products: within economy (?to environment?) Residuals: from economy to environment ? 6-7 May 2010

6 Classification of energy flows Recommendation: use classification of energy flows as applied in Energy Statistics ! 6-7 May 2010

6 Classification of energy flows Recommendation: use classification of energy flows as applied in Energy Statistics ! Most are products (in SEEA typology) ! Exeptions (resources): 5510 Hydro Power 5520 Wind Energy 5532 Solar Heat 5534 Photovoltaic Power 5550 Geothermal Energy Annex 3 ! 6-7 May 2010

6 Classification of energy flows Choices: Resources: if considered => classification needed ! Products: take the Energy Statistics‘ classification incl. correspondence to CPA Residuals: if considered => classification needed ! 6-7 May 2010

7 Measurement units 6-7 May 2010

7 Measurement units Choices (options) energetic unit (Joule) physical natural units (tonnes, cubic metres etc.) caloric values (conversion factors 1 1 + 2 1 + 2 + 3 1 + 3 6-7 May 2010

8 How to deal with activities (e. g 8 How to deal with activities (e.g. plants such as refineries) owned by foreign units on the territory? conceptual changes: SNA1993 => SNA2008 goods sent abroad for processing …considered as a service (processing) Does this match with recording of physical flows ? = general issue => to be discussed – SEEA revision 6-7 May 2010

9 Bridging items 6-7 May 2010

9 Bridging items Adjustment items from “territory“-approach => to “residence”-approach Energy Statistics => Energy Accounts Transparency ! 6-7 May 2010

(T18) Net use of energy by economic activities (breakdown of headline indicator) = sequence of vectors 1 Net inland use of energy) – territory principle (alternatively: GIC) 2 of which: renewable share (all renewable products) 3 ( + ) net energy use by resident units abroad (all products) 4 ( – ) net energy use of non-residents on the territory (all products) 5 =1+3-4 net inland use of energy – residence principle 6 ( + ) exports of energy – residence principle 7 =5+6 net use of energy – residence principle 8 of which: renewable share (all renewable products) 6-7 May 2010

10 General layout of SUTs 6-7 May 2010

10 General layout of SUTs Question of representing Supply and Use Tables ? 6-7 May 2010

10 General layout of SUTs 6-7 May 2010

10 General layout of SUTs 6-7 May 2010