The Energy Sector Model (ESM) Luke Reedman ANL-CSIRO workshop 31 January, 2012

Similar documents
Reference scenario with PRIMES

Insurance against Catastrophic climate change: How much will climate change mitigation policies cost Australia?

Primary Energy Demand (PJ)

Primary Energy Demand (PJ)

Contribution of alternative fuels and power trains to the achievement of climate protection targets within the EU27

ASSESSING THE IMPACT OF ENERGY POVERTY IN

Meeting the Challenge of Climate Change

The Need for Flexibility in Power Plants with CCS

Modeling China s Energy Future

Energy Technology Perspectives 2017 The Role of CCS in Deep Decarbonisation Scenarios

1st Stakeholder Workshop 9 August 2007

Mitigation strategies for energy and transport

Shell Renewables & Hydrogen. Tim O Leary. External Affairs

EU wide energy scenarios until 2050 generated with the TIMES model

MID-CENTURY STRATEGY FOR THE EU

Paper presented at the Australian Agricultural and Resource Economics Society (AARES) 52nd Annual Conference, Canberra, 6 February 2008.

TABLE OF CONTENTS TECHNOLOGY AND THE GLOBAL ENERGY ECONOMY TO 2050

Soft-linking UK MARKAL to a GIS interface to investigate spatial aspects of new hydrogen infrastructures

DDPP Decarbonization Calculator User s Guide

Sectoral integration long term perspective in the EU energy system

Climate Paths for Germany

A Sustainable Energy Future for Australia

Promoting sustainable mobility: natural gas and biomethane as a fuel for transport

Providing a comprehensive, up-to-date indication of key greenhouse gas and energy trends in Australia. National Energy Emissions Audit June 2017

SUMMARY FOR POLICYMAKERS. Modeling Optimal Transition Pathways to a Low Carbon Economy in California

Claude Turmes, MEP Vice President of the Green/EFA group in the European Parliament. Fuels from biomass - opportunities &risks

Update on Australian TIMES model development

Alan Forster Shell WindEnergy. LSU Alternative Energy Conference

Modelling Long-term Carbon Abatement Scenarios with UK MARKAL

A model for global and Australian electricity generation technology learning

"Energy Scenarios: Harnessing Renewable Energy for Sustainable Development and Energy Security in Nepal

Joint ICTP-IAEA Workshop on Vulnerability of Energy Systems to Climate Change and Extreme Events April 2010

Preliminary Assessment of Energy and GHG Emissions of Ammonia to H2 for Fuel Cell Vehicle Applications

Possible Futures: Scenario Modelling of Australian Alternative Transport Fuels to 2050

Methodology for calculating subsidies to renewables

Future sustainable EU energy systems and the case of Cyprus

Analysis of Long-Term Energy Pathways for Vietnam by Using Energy Scenarios

Clipore Final Conference Key Results September 2011 CEPS/Brussels. How can Sweden meet its Climate Objectives for 2050?

How far away is hydrogen? Its role in the medium and long term decarbonisation of Europe

Gas Networks Ireland Meeting Ireland s targets under the 2020 Climate & Energy Package

Summary of the California State Agencies PATHWAYS Project: Long-term Greenhouse Gas Reduction Scenarios

Sustainable Energy. Ecologically Sustainable Energy. Implications for the Sydney Region

Energy Outlook for ASEAN+3

Where are we headed? World Energy Outlook 2008

Energy Technology Perspectives 2006

Long Term Energy System Analysis of Japan after March 11, 2011

APEC Expert Group on New and Renewable Energy Technologies

Funded by: European Union

A Sustainable Energy Future for Australia

Energy Economics and. School of Economics, The University of Queensland

Low Carbon Fuel Standard

Small Modular Reactors UK Energy System Requirements For Cogeneration

10 June 2016, Asian Clean Energy Forum - Transport

Modelling the Impact of the Climate Leadership Plan & Federal Carbon Price on British Columbia s Greenhouse Gas Emissions

(Summary) Yuhji Matsuo* Yasuaki Kawakami* Ryo Eto* Yoshiaki Shibata* Shigeru Suehiro** Akira Yanagisawa*

Overview of renewable energy

Stockholm, June Markus Wråke, ETP Project Leader, Head of Energy Supply Unit

The Global Context for Low Emission Coal Technologies

Alberta s Climate Change Strategy Renewal Update October 9, 2013

CA-TIMES California Energy System Optimization Model

Graduation and expansion of positive list of small scale projects

Optimal design of a future hydrogen supply chain using a multi-timescale, spatially-distributed model

IMPACTS OF POLICY OPTIONS RELATING TO EMISSIONS ABATEMENT IN THE STATIONARY ENERGY SECTOR

pathways to deep decarbonization interim 2014 report Mexico Chapter

E 3 M Lab, Institute of Communication and Computer Systems. The MENA-EDS Model. Middle East and North Africa Energy Demand and Supply Model

Alternative fuels for road transport

Renewable Technologies in the Future NEM

RENEWABLE ENERGY IN THE PACIFIC NORTHWEST

e-fuels Liquid electricity - the convenient form of e-mobility Nils Aldag, Managing Director / Founder, Sunfire GmbH Investors

Global Energy System based on 100% Renewable Energy Power, Heat, Transport and Desalination Sectors North America

Energy Pathfinder. Overview paper. An integrated energy system simulator. February 2018

Transport, Energy and CO 2 : Moving Toward Sustainability

Energy and Resources-- Cuba

Energy [R]evolution for India. Delhi 5 th December 2008

The Energy Policy Context for the Australian Energy Technology Assessment

Low Carbon Scenarios for Canada

Global Challenges in Energy: Comparison between UK and India

EU EU Objectives and Strategies on Alternative Fuels. Organized by:

Keywords: Energy Policy, Externality, Nigeria

New technologies for the Mid-century strategy

100% Fossil Free Electricity. June 27, 2018

ELECTRICITY NETWORK TRANSFORMATION ROADMAP: KEY CONCEPTS REPORT SUMMARY DECEMBER 2016

Orkney Energy Audit. Christina Bristow Orkney Renewable Energy Forum

Integrated Resource Plan. Appendix 6B-1. Greenhouse Gas Reduction Scenarios for the Western Interconnection: ( )

A Sustainable Energy Future for Australia

Role of bioenergy and transport biofuels in energy and climate scenarios

Pacific Northwest Pathways to Achieving an 80% reduction in economy-wide greenhouse gases by 2050

Finding an Optimal Path to 2050 Decarbonization Goals

Technologies to Mitigate Climate Change

UK energy policy Can it deliver? Will it deliver?

Some MARKAL capabilities in Australian energy policy analysis:

Chapter 14 area strip mining contour strip mining high-grade ore low-grade ore mineral mineral resource mountaintop removal open-pit mining

API Automotive/Petroleum Industry Forum Alessandro Faldi

World Energy Outlook Dr. Fatih Birol IEA Chief Economist Riyadh, 12 January 2010

LINKING ENERGY SYSTEM AND INFRASTRUCTURE MODELS TO EXPLORE THE TRANSITION TO A HYDROGEN- FUELLED ECONOMY IN THE UK

Seventh Biennial Report on Progress toward Greenhouse Gas Reduction Goals

The Outlook for Energy

Where do we want to go?

Transcription:

The Energy Sector Model (ESM) Luke Reedman ANL-CSIRO workshop 31 January, 2012

Outline Background Overview of coverage of the model Programming problem Main use Development over time Where to from here

Some history Began construction of partial equilibrium modelling of the electricity and transport sectors in 2000 Stand-alone electricity and transport models Increasing need to have an energy sector model that had coverage of the whole energy sector Competition for primary energy sources Potential for local energy solutions Electrification of transport

Energy Sector Model (ESM) ESM is a partial equilibrium model of the energy sector (electricity generation and transport) solved as a LP ESM is solved as a linear program where the objective function to be maximised is net welfare, defined as the discounted sum of consumer and producer surpluses over time. The maximisation is subject to constraints that represent the physical limitations of fuel resources, the stock of electricity plant and vehicles, and various market and technology specific constraints such as the need to maintain a minimum number of peaking plants to meet rapid changes in the electricity load. Objective function can be cast as minimise total cost

Energy Sector Model (ESM) Coverage of all Australian states and territories and New Zealand. 9 road transport modes: small, medium and large passenger cars; small, medium and large commercial vehicles; rigid trucks; articulated trucks and buses. 5 engine types: internal combustion; hybrid electric/internal combustion; hybrid plug-in electric/internal combustion; fully electric and fuel cell.

Energy Sector Model (ESM) Thirteen road transport fuels: petrol; diesel; liquefied petroleum gas (LPG); natural gas (compressed (CNG) or liquefied (LNG)); petrol with 10 per-cent ethanol blend; diesel with 20 per-cent bio-diesel blend; ethanol and bio-diesel at high concentrations; biomass to liquids diesel; gas to liquids diesel; coal to liquids diesel with upstream CO 2 capture; hydrogen (from renewables) and electricity. 3 air transport fuels: jet fuel (kerosene) from fossil oil; biosynthetic paraffinic kerosene (bio-spk) and Fischer-Tropsch synthetic paraffinic kerosene (FT-SPK). Much less detailed fuel substitution possibilities in the rail and shipping sectors.

Energy Sector Model (ESM) 16 centralised generation (CG) electricity plant types: black coal pulverised fuel; black coal integrated gasification combined cycle (IGCC); black coal with CO 2 capture and sequestration (CCS); brown coal pulverised fuel; brown coal IGCC; brown coal with CCS; natural gas combined cycle; natural gas peaking plant; natural gas with CCS; biomass; hydro; wind; solar thermal; hot fractured rocks (geothermal), wave, and ocean current. 17 distributed generation (DG) electricity plant types: internal combustion diesel; internal combustion gas; gas turbine; gas micro turbine; gas combined heat and power (CHP); gas micro turbine CHP; gas micro turbine with combined cooling, heat and power (CCHP); gas reciprocating engine CCHP; gas reciprocating engine CHP; solar photovoltaic; biomass CHP; biomass steam; biogas reciprocating engine; wind; natural gas fuel cell and hydrogen fuel cell.

Energy Sector Model (ESM) Trade in electricity between National Electricity Market regions. Assignment of a vintage in annual increments for all vehicles and centralised electricity generation plant, based on when they were first purchased or installed. Four electricity end use sectors: industrial; commercial & services; rural and residential. Representation of time in annual frequency (2006, 2007,, 2050).

Key decision variables, constraints, prices Key decision variables: Quantity (electricity, transport services, fuel) Capital stock (plant, vehicles) Investment (plant, vehicles) Prices (electricity, transport services, fuel) Constraints: Market balance Capacity Capital stock Commodity balance Policy Shadow prices: Wholesale and retail electricity prices Cost of transport services GHG abatement cost Cost of other policies (e.g., RET, QLD gas target)

Scenario analysis tool GHG emission reduction Main use of ESM is to model technology uptake in a carbon constrained economy Can be done in 2 ways: 1. Impose a constraint on the model (energy sector must meet a pre-determined emission trajectory) 2. Impose a carbon price forward curve (additional cost element in objective function)

Intelligent Grid Major study conducted over 3 yrs Evaluate the economic, environmental and social benefits of distributed energy for Australia Significant development of ESM Increased number of technologies New constraints Linking with other modelling frameworks

Intelligent Grid example DG uptake profile 90 80 Landfill gas Biomass Steam/Cogen 70 Wind Non-urban Solar PV Commercial 60 Solar PV Non-urban TWh 50 40 Solar PV Residential Biogas Diesel off-grid 30 20 Diesel Urban Gas CHP/CCHP Commercial Gas CHP/CCHP Residential 10 Gas CHP Industrial 0 2010 2015 2020 2025 2030 2035 2040 2045 2050 Gas turbines

Intelligent Grid sensitivity analysis 40 DG percentage of tota al electricity generation 35 30 25 20 15 10 5 0 2010 2020 2030 2040 2050 Base Capex-20 Capex+20 CCS infeasible No DG CAP

Future Fuels Forum Key challenge was to model electricity and transport sectors simultaneously CSIRO. Insert presentation title, do not remove CSIRO from start of footer

Got some attention

Aviation forum Oil prices expected to rise Growth 6% p.a. Increasingly affordable Share of emissions to rise Biofuels needed to reduce emissions

Aviation forum ESM result 15% 12% Electricity sector (left axis) Road sector (left axis) Aviation sector (right axis) 50% 40% 9% 30% 6% 20% 3% 10% 0% 2015 2020 2025 2030 2035 2040 2045 2050 0%

Aviation forum Road map + 14 recommendations addressing the main challenges: Some resources still relatively unknown Some known but not trialled Prospective refining processes not proven No sustainability certification process Access to distribution infrastructure uncertain

Links to other models GTEM (ABARES) CCAM LUTO ASFF MMRF (Monash) ESM TAPM TranSaturate (BITRE) GALLM PLEXOS (UQ) CO 2 pipeline model Diffusion models GENERSYS

Web version of ESM

Web ESM example output The Energy Sector Model (ESM)

Conclusions/further work Number of achievements Model development is on-going Improve demand-side of the model Increasing need for sensitivity analysis Debate on spatial scale Web interface Linking with other models

Energy Transformed Flagship Dr Luke Reedman Research scientist Email: luke.reedman@csiro.au Thank you Contact Us Phone: 1300 363 400 or +61 3 9545 2176 Email: enquiries@csiro.au Web: www.csiro.au

Maximise welfare? Maximisation of the area under the demand function minus the area under the supply function is a way of solving for the point at which demand intersects supply (equilibrium). Ps(Q)= c + dq Price Pd(Q)= a - bq Quantity To find the maximum, take the derivative of the net social welfare function with respect to Q, and set it equal to zero: This solves for the value of Q where the demand function intersects the supply function. The value of P is implied from the solution value of Q.

Reaching for renewables study Study for Central Victorian Greenhouse Alliance (CVGA) How renewables can contribute to reducing emissions Sub-state analysis focus on CVGA LGAs: Subtract from what Vic currently is Trade with each other Trade with Vic Do not trade with other states Have no coal but some gas and renewables Have higher priced retail electricity then Vic Can invest in CG or DG

Reaching for renewables study 4.5 4 Bendigo has only significant landfill gas site Landfill gas 3.5 Solar thermal 3 Micro wind TWh 2.5 2 Should be investigated across whole CVGA region but high level data ranks northerly local governemnt areas such as Swan Hill highest Should be investigated across whole CVGA region but high level data ranks Hepburn, Macedon Ranges, Pyrenees and Ballarat highest Wind Diesel 1.5 Solar PV (large) 1 0.5 0 Relevant across whole CVGA region but high level data indicates biomass currently most available in the North West - e.g. Buloke, Gannawarra, Swan Hill, Campaspe. Zero net emissions by 2020 Mount Alexander has only significant hydro site Gas cogen Hydro Biomass

Method for modelling peak oil A fuel supply constraint is imposed. The shadow price represents what we would have been willing to pay to avoid having to adopt alternative fuels EXFC s, foil, g, m s, g, foil, m, t L t s is the states and territories of Australia foil is the subset of exogenous fuels that are derived from oil such as petrol and diesel and the blended component in biofuels m is the set of road transport modes g is the set of engine technologies t is time in annual increments EXFC is consumption in petajoules of those fuels that are defined in the model by exogenous parameters L is the upper limit of the total supply of fuels derived from oil.

Potential range of petrol price outcomes under peak oil