Energy Management and Policy 04/10/2003Fundamentals of Energy Policy Analysis M.Sc. in Engineering...

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Energy Management and Policy 04/10/2003 Fundamentals of Energy Policy Analysis M.Sc. in Engineering Policy and Management of Technology Fundamentals of Energy Policy Analysis Prof. Manuel Heitor [email protected] Maria João Rodrigues [email protected]

Transcript of Energy Management and Policy 04/10/2003Fundamentals of Energy Policy Analysis M.Sc. in Engineering...

Page 1: Energy Management and Policy 04/10/2003Fundamentals of Energy Policy Analysis M.Sc. in Engineering Policy and Management of Technology Fundamentals of.

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

[email protected]

Maria João Rodrigues

[email protected]

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Energy Management and Policy

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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

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Energy Management and Policy

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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

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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

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Energy Management and Policy

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OUTLOOK

Source: IEA (2003)

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Energy Management and Policy

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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”

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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

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ENERGY SERVICES DEMAND

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ENERGY SERVICES DEMAND

Test Fuel Intensity for New Cars

Source: IEA, 2000

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ENERGY SERVICES DEMAND

On-Road Fuel Intensity for Cars and Household Light Trucks

Source: IEA, 2000

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ENERGY SERVICES DEMAND

Car/Light Truck Use per capita per GDP per capita (1970-1998)

Source: IEA, 2000

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ENERGY SERVICES DEMAND

Source: IEA, 2000

Impact of Changes in Energy Intensity in Energy Use

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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

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ENERGY PRICES

Source: IEA, 2001

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THE POLICY MAKING PROCESS

Objectives

Instruments

Evaluation

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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

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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

● ● ● ●

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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

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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