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Module 1: Energy Balance and Energy Economics

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Energy Balance of a Country

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Hello, I am Santnam Bakshi, a teaching assistant of the Energy Economics Resources and Environment course, I am going to walk you through the Country Energy Balance given to the students. The objective of this assignment was for students to construct an energybalance for different countries, to see the flow of energy from the primary sources such as coal and oil to secondary sources like electricity to the end uses. (Refer Slide Time: 0:46) As you can see in this slide, we asked them to construct a table, which shows thedifferent sources that are there. The students were asked to collect data for different countries of their primary energy uses, and the amount of energy that goes into secondary sources like electricity there uses in different sectors like residential, industrial and transport and their break up into different end uses like lighting, air conditioning, extra. A lot of this information can be found on the website of the International Energy Administration, as well as the United States Energy Information Agency. (Refer Slide Time: 1:19) So, moreover, we asked the students to construct a Sankey diagram with this information, The Sankey diagram is a very good way to represent the flow of energy from primary sources to secondary energy all the way to end uses and in different sectors. As you can see in this particular diagram, it is very clear where the losses are and what the magnitudes of different things are. (Refer Slide Time: 1:37) After this, we also asked the students to construct a PECSS diagram which stands for Primary Energy Consumption by Source and Sector. So, this gives a very clear understanding of what the different primary energy sources are, what are their contributions to the energy requirements of that particular country and what their different breakups are in terms of the usage. (Refer Slide Time: 1:57) The students were asked to construct these diagrams for two different periods, 2000 as well as 2015. This was to illustrate the changes in the energy flow of a country over time, as newer technologies are developed. After this, they were asked to collectdata on the different energy-related metrics for a country. We had them collecting the carbon intensity, which is the CO2 emissions per unit energy produced, the energy intensity, which is the energy required per unit GDP, as well as the GDP per capita. In the assignment, our class was divided into different countries, therewas a large variation in the countries ranging from the developed countries like the OECD countries, as well as the underdeveloped countries like some of the African nations. The idea behind this was for the students to understand how the variations in energy flow happen across the wealth of different countries. (Refer Slide Time: 2:52) The students were further asked to collect information about the energy imports of a country and its implications on the energy security of the country. Students were also requested to collect information on the policies of individual countries, that they hadcommitted to, to meet the Paris Climate Agreement. We also asked the students to find out what are the bottlenecks that these countries face in the implementation of these policies. We now have three different countries presenting to you. They are Mexico, Australia, and Japan, you can get an understanding of the information that the students found about these three different countries, and what their scenarios are. Thank you. Hello everyone, I am Nitin, I along with my group member Mohammad Hafiz Niral will be presenting our assignment on the salient features of energy balance for the country Japan. Before going ahead, let first understand what are the issues that Japan is facing in terms ofenergy. If you look at Japan, the country as such has a very low self-sufficiency ratio in energy. Low self-sufficiency ratio means that a country has a strong dependence on energy imports. As per 2015 statistics, the self-sufficiency ratio of Japan was about 7.4 %which is very low when compared to the other OECD countries. For example, Denmark which has the highest self-sufficiency ratio is at 702 per cent. Britain is at about 65 per cent. Another issue that Japan is facing is the availability of a stable power supply. Other issues are the rise in the increase of CO2 emissions after the Fukushima accident since the dependence on fossil fuel-based energy sources as increased from 81 %to 89 %since 2010 to 2017. (Refer Slide Time: 2:04) So, some of the key issues that are faced by Japan is as flashed on the screen. So, 90% of the dependence for the primary energy supply input is, is from the coal, oil or the natural gas. About 86 %of the crude oil is imported from the Middle East. As far as natural gas is concerned, it is distributed amongst the countries. The major supplier being Australia which supplies about 27 %followed by Malaysia which supplies about 18.5 per cent. So here, Japan has tried to diversify its primary energy supply sour}ces which will ensure that it has good energy security in case one of the countries fails to meet the required amount of export. So, to ensure this Japan has also got very strong diplomatic relationships with these countries. Now, let us look at how and how the energy sector of Japan has changed before and after the earthquake in 2011. (Refer Slide Time: 3:18) Before the earthquake, Japan has a dependency of 11.9 %share by the nuclear power energy which reduced to about 0.8 %in the year 2016. Consequently to cater to this excess demand that is left unmet the share of increase of LNG has significantly increased. So, you can see from the slide that the share of the LNG has increased and it has peaked in the year 2014. This was the year when the tariff for the electricity in Japan has increased by 25 %from the rates what was there in 2010. (Refer Slide Time: 4:11) The greenhouse, on the other hand, the greenhouse gas emissions has also peaked since, as also peaked after 2011 incident and it peaked in 2003 there was a total increase of 4 %greenhouse emission gases from Japan. Why does Japan need nuclear power? Japan need to nuclear power to have a stable supply. It needed nuclear power to reduce electricity cost. It also helped in reducing the CO2 emissions from the country. So, as flashed on the screen, we can see those are the important points that why nuclear power was important to Japan. Now restarting the existing nuclear plants will meet, will require conforming to the new military standard that was given by the National Regulatory Agency. As per 2017, there were 5 operational plants. There were 17 which were undergoing the inspection and in case if the policy depends with the policy basis itself to have more energy from the nuclear supply, we can see that the nuclear power plants may again be restarted by 2020 or subsequently more plants will be restarted. At present, the pathway to Japan’s energy is not very sure whether they will be going totally, total dependence on the nuclear power plant as earlier before this Fukushima incident or it will be totally out of the dependence on the nuclear power energy. (Refer Slide Time: 6:11) There are some of the key developments that have taken place in the energy sector. Japan has been progressively pursuing the R and D on, R and D of methane hydrate as an unconventional domestic source. The methane hydrates can act as an energy source to meet the growing demands of Japan and as well as to reduce the CO2 emissions. Hydrogen is being seen as another major energy source to meet the growing demands, growing energy demands of Japan. Japan has been actively pursuing hydrogen in the transportation sectors and the power generation for the residential areas. The fuel, fuel cell-based vehicular application has received a lot of impetus in Japan and for the coming up 2020 Tokyo Olympics Japan is going to use hydro, fuel cell-based vehicles as the main transportation unit during this Olympics. Further, a large amount of electricity in the residential areas is also going to come from the fuel cells that will play, that will be used in each of the residential areas. (Refer Slide Time: 07:38) So, as flashed on the screen the hydrogen energy or the hydrogen economy is expected to play a pivotal role. Another important measure that Japan has taken continuously is enhancing its energy license. The energy efficiency of Japan has increased, we can say that from 2000 to 2015, the GDP of Japan grew by 1.12 % and the energy consumption at the same time decreased by 0.83 times. This only goes to show that Japan has been adopting new and new energy-efficient measures. The sector of renewable energy has also received a significant boost. New laws such as the feed-in tariff system as ensuring that renewable energy has grown by at an annual growth rate of 26 since 2010. The feed-in tariff system eases by which renewable energy will be installed in the country. (Refer Slide Time: 8:50) As of 2015, the renewable energy ratio in generating electric power has increased up to 14.5 per cent. So, as we can see from the screen there has been a significant rise from 2003 to 2016 in the share of the renewable energy and this has also been attributable to the new laws such as feed-in tariff scheme where the energy that is generated from the renewable sources it directly purchased by the electric supply companies and the taxes are thereafter levied on the customers. (Refer Slide Time: 9:35) Now, the future of Japan in terms of its energy security, it seems that it is, it will be a mix from the renewable energy and the dependence of, on the fossil fuel-based energy sources it is going to decrease as Japan has also promised the INDC of the Paris Agreement to reduce the CO2 emissions significantly. So, this is what is the expected composition of the power resources, in case if Japan’s policymakers decide to have a dependence on the nuclear resources of the energy. This is with my presentation about the energy analysis of Japan, thank you very much. Hello everyone, my name is Ashogan. My team members are Mr Nawaf and Miss. Mamni Farida. We are going to discuss an analysis of the energy balance for Australia. Australia is the sixth biggest country in the world. They are having a population of 2.5 crores, out of this 30% of people are youngsters those who are contributing more in their GDP. (Refer Slide Time: 0:48) The life expectancy of Australia men is 75 and woman it is 80. The literacy rate in Australia is 99%. The GDP comes from Australia is most of them from service sectors, then industrial sectors than agriculture. (Refer Slide Time: 01:08) We will talk about the energy 40%of energy consumed from coal and 29%comes from natural gases, but the amount of renewable energy is very very less. The sector-wise, transportation sectors and industrial sectors consume more energy. (Refer Slide Time: 1:25) From the Sankey diagram, it is clear that the coal productions having the line share and next we have natural gases. It observes that 63% of electricity comes from coal alone and there is no significant contribution from any renewable energy sources. (Refer Slide Time: 1:46) This is primary energy consumption by source and sector diagram. The source is coal, natural gas, oil, renewable etc. The sectors are residential, industrial, transport, etc. The transportation and industrial sector consume more energy in Australia. (Refer Slide Time: 2:08) From the Kaya identity, it is very clear that the carbon intensity is higher in Australia. What is carbon intensity? The CO2 emission for generating a particular amount of energy. (Refer Slide Time: 2:25) As well as, the energy intensity means it is measured as a unit of energy per unit of GDP. So here, the energy intensity is, Australia is higher than India. (Refer Slide Time: 2:37) The cumulative annual growth rate for various indicators given here. It shows that the net energy inputs every year it is increasing. As well as the CO2 emission is higher compared to India for Australia, but the per capita energy consumption is very good compare to India in the case of Australia. (Refer Slide Time: 3:01) Regarding significant policies, Australia has the target to reduce 26 to 28% of CO2 emissions by 2030. And Australia has the target like large-scale renewable energy target and small scale renewable energy scheme. The large-scale renewable energy target, it says that those who are using more energy for their industrial operations, some particular amount of energy they should use from renewable energy. The small-scale renewable energy scheme supposes that people those who are using renewable energy sources by providing subsidy. Also, clean energy finance corporation and Australian Renewable Energy Agency providing a fund to the agencies or industry those who are working on renewable energy sources. Regarding the energy security of Australia because of rising energy price as well as tightening gas market on the East Coast as well as numerous power outages slightly they are having a lower side of energy security. However, it can be improved by using renewable energy sources in further days. (Refer Slide Time: 4:18) The energy bottlenecks for Australia is infrastructure mainly, that is they have to invest more and more money for electricity transmission as well as storage of energy. Structured electricity infrastructure framework definitely in need for them and working on reforms of the electricity market is compulsory for Australia to develop. The main bottleneck is, when the CO2 emission is reduced, the coal plant supposed to be stopped or reduced. So, that time the employee of coal plant will lose the job it will spoil your livelihood. For India, the development of life cycle is, lifestyle is very important for India. The reason is per capita for India energy consumption is less compared to Australia, it shows that the life quality we supposed to be improved. And the investment for the renewable energy generation supposed to be improved as Australia is improving day by day. The electricity loss in India is 25%, whereas in Australia just 5%. It shows that we have to give more concentration to save electricity. For Australia per capita, CO2 is huge in Australia. So, diversification of fuels also they should take care of. (Refer Slide Time: 5:41) In India, we have national energy policy it providing or it, it is intended to provide affordable energy with good energy security and improving energy security for their systems. Australia should have the structured long-term policy plan like India is having as well as India’s NDCs about to reduce 33 to 35% of CO2 in the nearby future the same kind of plans Australia should take care. Say example, India is installing 175GW of renewable energy by 2020 that is our target. As well as Australia should go ahead with renewable energy in a fast manner. For conclusion, Australia having a lot of CO2 emissions per capita CO2 emission is very high. (Refer Slide Time: 6:36) They are having a lot of uranium energy as well as sunlight, so they can make use of uranium and sunlight they can start the renewable energy source like solar and uranium. So, the CO2 emission will be reduced, as well as diversification of fuel is very very important for Australia as energy security can be improved because of that. The energy bottleneck should be taken care of Australia to take a further step for the renewable energy sources, thank you. Hello everyone, I am Ravi Kumar along with my group members Neha Durga and Vijay Shankar. Today, we are representing Mexico. Mexico is just more than Burrito and tortilla. However, its food is its face in the world. (Refer Slide Time: 0:40) We share our border with the US in the North and Pacific Ocean in the South. We are the 13th largest state in the world with two million square kilometre area and about 129 million people. Our population density is about 66 per kilometre square. We are a young country with 50% of the population below 30 years. The per capita GDP is about 9 to 9 US dollars, and we fall under the middle-income category by the World Bank. (Refer Slide Time: 1:19) Our primary sectors are agriculture, industry and service sector but its service sector which provide a livelihood to about 63% of people and add around 60% to GDP. Our HDI rank is 74 which is good as compared with the world, but not good as compared to our neighbour the US. So, we aim to increase this in the coming decades. We are shifting from oil-based economy to gas-based economy by importing natural gas from US and Canada and exporting the crude oil to them, and it depicts in a decrease in emission per capita and carbon intensity. Mexico was the seventh-largest producer of crude oil as of 2007. However, the share of crude oil has straightaway declined since 2005. (Refer Slide Time: 2:20) This is because of the increasing share of natural gas in the total energy mix. This shows our concern about the climate change issue. The coal NG is less polluted as compared to oil and coal. Hi friends, in continuation to Mexico which was elaborated by my group member Ravi, I will discuss the energy intensity of the economy. If we see the energy intensity of the economy has gradually, first it has gradually decreased but in the last 5 years it has decreased significantly from 85 to 78, this is primarily because of the shift in the economy from manufacturing base to more towards services and export. (Refer Slide Time: 3:08) 90% of the export of the Mexican economy is under free trade agreement and, and this trade is with more than 40 countries including countries in USA, Asia and other Middle East countries. (Refer Slide Time: 3:26) Now, if we see the carbon intensity of the energy mix. So, carbon intensity first increase in 3 years has been shown here, 2000, 2010 and 2015, between 2000 and 2010 the, if you see in the slide the carbon intensity of the energy mix has first increased then it has decreased since 2010 when the concern towards the climate change became more aggressive in Mexico and that is why as it was highlighted by my group member, Ravi that the share of the import of natural gas has increased and this is because the energy production is more employing natural gas in Mexico. After all, natural gas as we know is a cleaner source of energy compared to oil and coal. And now, if we talk about the climate issues which has been discussed by Mexico. Mexico has been very aggressive in terms of dealing with climate issues. (Refer Slide Time: 4:45) If I show you this slide, we see that Mexico adopted what is called general law on climate change in 2012. Following were the targets which were highlighted under this and these are quantified targets, these are three-point targets. The targets are a minimum of 35% of electricity would be from clean energy source by 2024. Reducing emissions by 30% by the year 2020 and 50% reduction in emission by 2015 and this is with the reference to the base year 2000. And the third very important point in, to meet the climate change issues by 2030 Mexico will reduce total greenhouse gas emission by 22% and will reduce its carbon emission by 51% compared with a 2000 baseline. So, this was all about Mexico. Thank you.