1. UK Energy Balances Iain MacLeay – Head Energy Balances, Prices and Publications Date May 2009

2. Outline of Presentation 1.UK Balance 2.Simplified balance 3.Other issues

3. UK Practice - part 1 1.Raw data collection – mainly surveys, but some admin data 2.Aggregates produced – eg production of steam coal, coking coal, anthracite etc. Imports, exports, consumption split by industry etc. 3.Balances produced by fuel in natural units

4. UK Practice - part 2 1.Data translated to standard unit (UK chooses to use tonne of oil equivalent) 2.Start with matrix of 50+ columns (see next slide) 3.Conversion made using Gross Calorific Values (though also done using Net CVs to meet EU needs (20/20 targets etc)) 4.CVs obtained from industry and survey responses

5. Columns in UK Energy Balance Coal - tonnes Steam coal Coking coal Anthracite Manufactured fuels – solids - tonnes Coke Breeze Coal products for open appliances Coal products for closed appliances Manufactured fuels – liquids - GWh Benzole Tars Manufactured fuels – gases - GWh Coke oven gas Blast furnace gas Combustible renewables - toe Wood Wood waste Straw Poultry litter Farm waste digestion Sewage gas Landfill gas Non biomass wastes - toe Municipal solid waste Hospital waste General industrial waste Tyres Chemicals Other renewables - toe Geothermal Solar Liquid biofuels for transport Primary oil - tonnes Crude oil Ethane Propane Butane Condensates Feedstocks Gas - GWh Natural Gas Colliery methane Primary electricity - GWh Nuclear Large scale hydro Small scale hydro Wind and wave Heat sold - GWh Petroleum products - tonnes Ethane Propane Butane Other petroleum gases Naphtha Aviation spirit Motor spirit Industrial spirit White spirit Aviation turbine fuel Burning oil Gas oil (inc MDF) Marine diesel oil Fuel oils Lubricants Bitumen Petroleum wax Petroleum Coke Orimulsion Other miscellaneous products

6. UK Practice - part 3 1.Calculations performed 2.Results analysed – statistical differences considered 3.Data aggregated into 9 columns for final publication 4.Flow charts and other summary charts produced

7. UK Energy Balance 2007

8. Energy Balance 2007 con’t

10. Simplified Balances – part 1 1.Not reasonable to expect all countries to produce such a comprehensive picture of their energy system 2.The following slide shows the energy balance for the Channel Island of Jersey 3.With the one after showing the UK quarterly balance.

11. Energy Balances

12. UK Quarterly Energy Balance

13. Accuracy Important to focus on key aggregates. For the UK these are: Own production Trade Total supply/demand Transformation Final consumption –by Industry, –Transport –Domestic and –Other Less relative importance re energy industry own use, losses and non energy use – though each important in own right

14. Key uses of data Own production – tax revenue, self sufficiency Trade – dependency on others, detail by country of source is needed, trade routes Total supply/demand – Headline data Transformation – Efficiency of generation, emissions Final consumption – Energy efficiency, effect of emissions trading –Industry - EU ETS –Transport – Switching by mode of travel –Domestic – Energy efficiency –Other – Monitoring public sector use etc. Other sectors: –energy industry own use – efficiency of extraction and transformation –Losses – efficiency of distribution system –non energy use – competing demands on energy products

15. History: Units From May 1991 the UK commenced using tonnes of oil equivalent (toe). Previously tonnes of coal equivalent had been used, with therms used for some energy consumption information. UK move to toe follows that of Eurostat and the IEA – though it was recognised that the UN used the SI unit of joules.

16. Gross v Net Consultation November 1993 UK has been using gross calorific values since we started producing balances in the 1960’s. There were two reasons for adopting this practice: 1.This was the method industries used for pricing their fuels; 2.The small step that NCVs represented in the transition from energy supplied to useful energy was very small compared with the large losses that generally occur in practice in extracting useful energy from all fuels, other than electricity. It was recognised that IEA, Eurostat and the UN all used NCVs.

17. Arguments 1.Changing the UK to using NCVs would bring the UK into line with international organisations 2.There would need to be revisions made to UK historical data 3.There could be confusion re price information 4.NCVs provide a better measure of available energy – but the efficiency of most energy uses, especially for fossil fuels, will be such that there will still be large gaps between this measure and useful energy – space heating and lighting can use as little as 20% of the energy supplied. 5.Condensing boilers are able to utilise the latent heat of the water vapour so NCVs will understate the available energy Results Have been unable to locate detailed responses – but the UK continued to use GCVs in producing energy balances.

18. Consultation July 2005 DTI issued a consultation document that proposed we commence using NCVs from 2006. Five written responses were received: 3 from energy related businesses, 1 from a major business user, and 1 from a mechanical engineer. Two were in favour, 3 were against, with particular reservations regarding gaseous fuels. Two additional users, who did not respond formally, welcomed the provision of NCVs as well as GCVs and thus felt that there was no need for DTI to change from GCVs as they could do their own calculations. In conclusion, DTI recognised that there were good arguments for both NCVs and GCVs. At present there was no demonstrable advantage in changing from the present UK practice, and so GCVs remain the headline method.