Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
M.Sc. in Engineering Policy and Management of Technology
Fundamentals of Energy Policy Analysis
Prof. Manuel Heitor
Maria João Rodrigues
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
CLASS STRUCTURE
@Fundamentals of Energy Policy Analysis
@ Home Assignment
PARTE I 09h00-11h00
PARTE II 11h30-13h00
Intervalo: 11h00-11h30
António Castro, EDP Energy Market Restructuring: Merging the electricity and natural gas businesses
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
KEY FIGURES
World TPES 2001 10.000
MtoePortuguese TPES 2000 26
Mtoe
World TPES Fuel Mix 2001 80% Fossil
FuelsPortuguese TPES Fuel Mix 2000 85% Fossil
Fuels
Top Primary Energy Exporters
Oil Middle East (Saudi
Arabia)NG Europe&Eurasia
(Russia)Coal
Australia
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
KEY FIGURES
World TFC 2001 7.000
MtoePortuguese TFC 2000 18
Mtoe
World TFC Fuel Mix 2001 67% Fossil
Fuels
15,5%
ElectricityPortuguese TPES Fuel Mix 2000 67% Fossil
Fuels
18%
ElectricityWorld Electricity Generation 15.000
TWhPortuguese Electricity Generation
43 TWh
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
OUTLOOK
Source: IEA (2003)
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
KEY ELEMENTS AND CONCEPTS OF THE ENERGY
SYSTEM
Energy supply
Power plantsHeat plantsGas supplyOil supply
...
End-Use Energy
Heating OilGasoline
ElectricityNatural Gas
...
Energy ServiceDemand
Car-kmMotive Power
LightIndoor Heat
...
Fuel Mix
Supply Conversion Efficiency
Fuel Mix
EnergyIntensity
ENERGY SYSTEM
“UTILITY”
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
KEY ELEMENTS AND CONCEPTS OF THE ENERGY
SYSTEM
Economy
GDPPopulation
IncomePrices
...
Activity
Structure
ClimateClimate
Energy supply
Power plantsHeat plantsGas supplyOil supply
...
End-Use Energy
Heating OilGasoline
ElectricityDistrict Heating
...
Energy ServiceDemand
Car-kmMotive Power
LightIndoor Heat
...
Fuel Mix
Supply Conversion Efficiency
Fuel Mix
EnergyIntensity
ENERGY SYSTEM
“UTILITY”
Environment
Governmental Intervention Adapted from: IEA, 2000
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ENERGY SERVICES DEMAND
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ENERGY SERVICES DEMAND
Test Fuel Intensity for New Cars
Source: IEA, 2000
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ENERGY SERVICES DEMAND
On-Road Fuel Intensity for Cars and Household Light Trucks
Source: IEA, 2000
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ENERGY SERVICES DEMAND
Car/Light Truck Use per capita per GDP per capita (1970-1998)
Source: IEA, 2000
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ENERGY SERVICES DEMAND
Source: IEA, 2000
Impact of Changes in Energy Intensity in Energy Use
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ECONOMY STRUCTURE
Gross Added- Value by Sector (€)
0,0
20.000,0
40.000,0
60.000,0
80.000,0
100.000,0
120.000,0
140.000,0
1995 1996 1997 1998 1999 2000 2001 2002
SERVIÇOSCONSTRUÇÃOINDÚSTRIA E ELECTRICIDADEAGRICULTURA, SILVICULTURA E PESCAS
Data Source: INE, 2003
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
ENERGY PRICES
Source: IEA, 2001
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
THE POLICY MAKING PROCESS
Objectives
Instruments
Evaluation
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
GENERAL ENERGY POLICY OBJECTIVES
Security of Supply and Diversification of Sources@
Environmental Protection@
Competitive Energy Systems@
Minimizar os riscos e impactos na economia e sociedade resultantes de uma disrupção de abastecimento
Assegurar baixos custos de energia para produtores e consumidores por forma a contribuir para a competitividade industrial e outros objectivos sociais mais latos
Minimizar o impacto ambiental associado quer à produção quer ao consumo de energia por forma a manter os equilíbrios ecológico e geofísico da natureza
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
INSTRUMENTS
Source: UNEP/IEA, 2002
Government intervention
Example
How the subsidy usually works
lowers cost of
production
raises cost of
production
lowers price to
consumer
Direct financial transfer Grants to producers Grants to consumers Low-interest or preferential loans to producers
●●
●
Preferential tax treatment Rebates or exemptions on royalties, duties, producer levies and tariffs Tax credit Accelerated depreciation allowances on energy-supply equipment
● ● ●
●
Trade restrictions Quotas, technical restrictions and trade embargoes
●
Energy-related services provided directly by government at less then full cost
Direct investment in energy infrastructure Public research and development
● ●
Regulation of the energy sector
Demand guarantees and mandated deployment rates Price controls Market-access restrictions
● ● ● ●
●
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
REFERENCES & FURTHER READING
• IEA (2000), The IEA Energy Indicators Effort – Increasing the Understanding of the Energy/Emissions Link, presented at COP6 meeting, 13-24 November 2000, The Hague http://www.iea.org/envissu/cop6/eneinl.pdf
•IEA (2003), Key World Energy Statistics http://www.iea.org/statist/key2003.pdf
• IEA (2000b), World Energy Outlook 2000 http://www.worldenergyoutlook.org/weo/pubs/weo2000/weo2000.asp
• IEA (2001), Energy Price Volatility – Trends and Consequences http://library.iea.org/dbtw-wpd/exec/dbtwpcgi.exe
• UNEP and IEA (2002), Reforming Energy Subsidieshttp://www.iea.org/envissu/johannesburg/reforming.pdf
• Directorate-General for Energy (1999), The Shared Analysis Project – Economic Foundations for Energy Policy, European Commission, Brusselshttp://www.shared-analysis.fhg.de/Pub-fr.htm
Energy Management and Policy
04/10/2003Fundamentals of Energy Policy Analysis
REFERENCES & FURTHER READING II
• Diário da República – I-B, N.º 98 – 10 de Maio de 2003, Resolução do Conselho de Ministros n.º 68/2003 Define as linhas gerais do quadro estratégico e organizativo do sector energético Português
•Diário da República – I-B, N.º 98 – 28 de Abril de 2003, Resolução do Conselho de Ministros n.º 63/2003
• Official Journal of the European Union L176/37, 15.07.2003, Directive 2003/54/EC of the European Parliament and of the Council of 26 June 2003Concerning common rules for the internal market in electricity and repealing Directive 96/92/EC • Official Journal of the European Union L176/57, 15.07.2003, Directive 2003/55/EC of the European Parliament and of the Council of 26 June 2003Concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC