Energy demand/Description: Difference between revisions
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{{ComponentDescriptionTemplate | {{ComponentDescriptionTemplate | ||
|Reference=De Vries et al., 2001; Richels et al., 2004; Van Ruijven et al., | |Reference=De Vries et al., 2001; Richels et al., 2004; Van Ruijven et al., 2016; Van Ruijven et al., 2011; Isaac and van Vuuren, 2009; Daioglou et al., 2014; Plotkin and Singh 2009; | ||
|Description=The energy demand module has aggregated formulations for some sectors and more detailed formulations for other sectors. In the description that follows, the generic model is presented which is used for the service sector, part of the industry sector (light) and in the category other sectors. Next, the more technology detailed sectors of residential energy use, heavy industry and transport are discussed in relation to the elements of the generic model. | |Description=The energy demand module has aggregated formulations for some sectors and more detailed formulations for other sectors. In the description that follows, the generic model is presented which is used for the service sector, part of the industry sector (light) and in the category other sectors. Next, the more technology detailed sectors of residential energy use, heavy industry and transport are discussed in relation to the elements of the generic model. | ||
In the generic module, demand for final energy is calculated for each region (R), sector (S) and energy form (F, heat or electricity) according to: | In the generic module, demand for final energy is calculated for each region (R), sector (S) and energy form (F, heat or electricity) according to: | ||
{{FormulaAndTableTemplate| | {{FormulaAndTableTemplate|Formula1 Energy demand}} | ||
Equation 1, in which: | Equation 1, in which: | ||
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Demand for secondary energy carriers is determined on the basis of demand for energy services and the relative prices of the energy carriers. For each energy carrier, a final efficiency value (η) is assumed to account for differences between energy carriers in converting final energy into energy services. The indicated market share ([[HasAcronym::IMS]]) of each fuel is determined using a multinomial logit model that assigns market shares to the different carriers (i) on the basis of their relative prices in a set of competing carriers (j). | Demand for secondary energy carriers is determined on the basis of demand for energy services and the relative prices of the energy carriers. For each energy carrier, a final efficiency value (η) is assumed to account for differences between energy carriers in converting final energy into energy services. The indicated market share ([[HasAcronym::IMS]]) of each fuel is determined using a multinomial logit model that assigns market shares to the different carriers (i) on the basis of their relative prices in a set of competing carriers (j). | ||
{{FormulaAndTableTemplate| | {{FormulaAndTableTemplate|Formula2 Energy demand}} | ||
IMS is the indicated market share of different energy carriers or technologies and c is their costs. In this equation, λ is the so-called logit parameter, determining the sensitivity of markets to price differences. | IMS is the indicated market share of different energy carriers or technologies and c is their costs. In this equation, λ is the so-called logit parameter, determining the sensitivity of markets to price differences. | ||
The equation takes account of direct production costs and also energy and carbon taxes and premium values. The last two reflect non-price factors determining market shares, such as preferences, environmental policies, infrastructure (or the lack of infrastructure) and strategic considerations. The premium values are determined in the model calibration process in order to correctly simulate historical market shares on the basis of simulated price information. The same parameters are used in scenarios to simulate the assumption on societal preferences for clean and/or convenient fuels. However, the market shares of traditional biomass and secondary heat are determined by exogenous scenario parameters (except for the residential sector discussed below). Non-energy use of energy carriers is modelled on the basis of exogenously assumed intensity of representative non-energy uses (chemicals) and on a price-driven competition between the various energy carriers ([[Daioglou et al., | The equation takes account of direct production costs and also energy and carbon taxes and premium values. The last two reflect non-price factors determining market shares, such as preferences, environmental policies, infrastructure (or the lack of infrastructure) and strategic considerations. The premium values are determined in the model calibration process in order to correctly simulate historical market shares on the basis of simulated price information. The same parameters are used in scenarios to simulate the assumption on societal preferences for clean and/or convenient fuels. However, the market shares of traditional biomass and secondary heat are determined by exogenous scenario parameters (except for the residential sector discussed below). Non-energy use of energy carriers is modelled on the basis of exogenously assumed intensity of representative non-energy uses (chemicals) and on a price-driven competition between the various energy carriers ([[Daioglou et al., 2014]]). | ||
===Heavy industry=== | ===Heavy industry=== | ||
The heavy industry submodule was include for the steel and cement sectors ([[Van Ruijven et al., | The heavy industry submodule was include for the steel and cement sectors ([[Van Ruijven et al., 2016]]). These two sectors represented about 8% of global energy use and 13% of global anthropogenic greenhouse gas emissions in 2005. The generic structure of the energy demand module was adapted as follows: | ||
*Activity is described in terms of production of tonnes cement and steel. The regional demand for these commodities is determined by a relationship similar to the formulation of the structural change discussed above. Both cement and steel can be traded but this is less important for cement. Historically, trade patterns have been prescribed but future production is assumed to shift slowly to producers with the lowest costs. | *Activity is described in terms of production of tonnes cement and steel. The regional demand for these commodities is determined by a relationship similar to the formulation of the structural change discussed above. Both cement and steel can be traded but this is less important for cement. Historically, trade patterns have been prescribed but future production is assumed to shift slowly to producers with the lowest costs. | ||
*The demand after trade can be met from production that uses a mix of technologies. Each technology is characterised by costs and energy use per unit of production, both of which decline slowly over time. The actual mix of technologies used to produce steel and cement in the model is derived from a multinominal logit equation, and results in a larger market share for the technologies with the lowest costs. The autonomous improvement of these technologies leads to an autonomous increase in energy efficiency. The selection of technologies represents the price-induced improvement in energy efficiency. Fuel substitution is partly determined on the basis of price, but also depends on the type of technology because some technologies can only use specific energy carriers (e.g., electricity for electric arc furnaces). | *The demand after trade can be met from production that uses a mix of technologies. Each technology is characterised by costs and energy use per unit of production, both of which decline slowly over time. The actual mix of technologies used to produce steel and cement in the model is derived from a multinominal logit equation, and results in a larger market share for the technologies with the lowest costs. The autonomous improvement of these technologies leads to an autonomous increase in energy efficiency. The selection of technologies represents the price-induced improvement in energy efficiency. Fuel substitution is partly determined on the basis of price, but also depends on the type of technology because some technologies can only use specific energy carriers (e.g., electricity for electric arc furnaces). | ||
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The efficiency changes in both passenger and freight transport represent the autonomous increase in energy efficiency, and the price-induced improvements in energy efficiency improvement parameters. These changes are described by substitution processes in explicit technologies, such as vehicles with different energy efficiencies, costs and fuel type characteristics compete on the basis of preferences and total passenger-kilometre costs, using a multinomial logit equation. The efficiency of the transport fleet is determined by a weighted average of the full fleet (a vintage model, giving an explicit description of the efficiency in all single years). As each type of vehicle is assumed to use only one fuel type, this process also describes the fuel selection. | The efficiency changes in both passenger and freight transport represent the autonomous increase in energy efficiency, and the price-induced improvements in energy efficiency improvement parameters. These changes are described by substitution processes in explicit technologies, such as vehicles with different energy efficiencies, costs and fuel type characteristics compete on the basis of preferences and total passenger-kilometre costs, using a multinomial logit equation. The efficiency of the transport fleet is determined by a weighted average of the full fleet (a vintage model, giving an explicit description of the efficiency in all single years). As each type of vehicle is assumed to use only one fuel type, this process also describes the fuel selection. | ||
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Since Girod et. al ([[Girod et al., 2012|2012]]) the LDV projected vehicle costs and efficiency have been revised to incorporate more recent projections of LDV vehicle technology development. The vehicle characteristics are based on the in depth study performed by the Argonne National Laboratory ([[Plotkin and Singh 2009|2009]]). | |||
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===Residential energy use=== | ===Residential energy use=== | ||
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The model distinguishes five income quintiles for both the urban and rural population. After determining the energy demand per function for each population quintile, the choice of fuel type is determined on the basis of relative costs. This is based on a multinomial logit formulation for energy functions that can involve multiple fuels, such as cooking and space heating. In the calculations, consumer discount rates are assumed to decrease along with household income levels, and there will be increasing appreciation of clean and convenient fuels ([[Van Ruijven et al., 2011]]). For developing countries, this endogenously results in the substitution processes described by the energy ladder. This refers to the progressive use of modern energy types as incomes grow, from traditional bioenergy to coal and kerosene, to energy carriers such as natural gas, heating oil and electricity. | The model distinguishes five income quintiles for both the urban and rural population. After determining the energy demand per function for each population quintile, the choice of fuel type is determined on the basis of relative costs. This is based on a multinomial logit formulation for energy functions that can involve multiple fuels, such as cooking and space heating. In the calculations, consumer discount rates are assumed to decrease along with household income levels, and there will be increasing appreciation of clean and convenient fuels ([[Van Ruijven et al., 2011]]). For developing countries, this endogenously results in the substitution processes described by the energy ladder. This refers to the progressive use of modern energy types as incomes grow, from traditional bioenergy to coal and kerosene, to energy carriers such as natural gas, heating oil and electricity. | ||
The residential submodule also includes access to electricity and the associated investments ([[Van Ruijven et al., 2012]]). Projections for access to electricity are based on an econometric analysis that found a relation between level of access , and GDP per capita and population density. The investment model is based on population density on a 0.5 x 0.5 degree grid, from which a stylised power grid is derived and analysed to determine investments in low-, medium- and high-voltage lines and transformers. | The residential submodule also includes access to electricity and the associated investments ([[Van Ruijven et al., 2012]]). Projections for access to electricity are based on an econometric analysis that found a relation between level of access , and GDP per capita and population density. The investment model is based on population density on a 0.5 x 0.5 degree grid, from which a stylised power grid is derived and analysed to determine investments in low-, medium- and high-voltage lines and transformers. See additional info on [[Grid and infrastructure]] | ||
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Revision as of 11:22, 8 November 2016
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