 Good afternoon, everyone. My name is Taylor Morrison and today I'll be presenting on energy balances. So, this afternoon we'll look at what is an energy balance? Why do we create energy balances? How are energy balance calculated? We'll look at the IEA energy balance layout and then finally we'll look at some uses of energy balances. So, first of all, we'll start with the mentee question. So, please go to www.mentee.com and put in the code at the top of the screen. So, is your country producing a national energy balance? Excellent. I see that many of you, many of your countries are already producing a national energy balance. So, you may already be familiar with the concepts and the energy balances that we'll be looking at today and I hope that for the participants who, as country, do not have a national energy balance yet, that this presentation will give you the information necessary to maybe start developing that or using other countries energy balances for comparison purposes. So, first of all, let's look at what is an energy balance? So, an energy balance is a concise way of displaying a concise and compact way of displaying the energy information, energy statistics for within an energy system. So, according to the international recommendations on energy statistics, it's an accounting framework for compilation of data on all energy products entering, exiting and used within the national territory of a given country during a reference period. So, that's one thing that is key to note is that energy balances are generally displayed for a single year. So, for instance, you would create an energy balance for 2021 and then a different energy balance for 2022. So, it displays the energy system for a given year within a given country or regional aggregate. So, now let's look at the specific components of an energy balance. So, along the rows, we have energy flows display, and this can be divided into three blocks. So, on top, we have supply flows. Then we have the transformation and energy industry own use sector. And then finally, we have final consumption at the bottom. Then, along the top of the energy balance, we have all the different types of energy products consumed with producer consumed within the country. So, not only do we finally have all products here, visible all at once, but we also convert these into single energy unit. So, therefore, energy information is comparable for all products and we can then aggregate this information between from all the products into the total column. So, we have a can look at the energy system as a whole as opposed to divided between individual energy products. So, the main advantage of energy balances is they give a global picture of the energy situation in a country across all products and energy flows. So, in addition to the previous format of balance, I just displayed Sankey diagrams are also a way of displaying an energy balance, essentially in the reverse. So, you have energy products along the rows of this figure and flows are displayed along the top. So, moving horizontally, you can see how the quantity of energy product changes, depending on the energy flow so we can see how when energy is split between exports and domestic consumption we can see how it's transformed into energy products, other energy products until it finally reaches total final consumption so this is another way of displaying an energy balance in a more visual format. So, now we'll go on to the next part of the presentation which is why do we create energy balances. So, in addition to giving, as I already said a very clear complete picture of a national energy system and energy market. It also is a great tool for comparison so we're able to look at the different weight of different energy sources within a total mix. So for instance, we can see find out the share of renewable sources within a country's energy mix. We can also compare energy consumption across different sectors of the economy. And we can also use the energy balance to look at indicators such as energy intensity dependence on energy imports and other socio economic indicators which I will discuss more later. Similarly, because it's a harmonized complete format energy balances, when harmonized between countries, allow us to compare different countries and see how they are similar or different. And it also allows us to aggregate regions and the whole world, which is some of the work that the IEA does is creating a global energy balance. And they're also a very useful tool for looking at data quality. So for instance, we can see if a country's national energy, energy statistics have a high statistical difference or and we can look at efficiency of transformation processes, and I will discuss this more later. So, now that we know what an energy balance is and what it's used for how our energy balances calculated. So over the past three days, you've seen how energy data is collected for the five different fuels, either through annual questionnaires or national statistics publications and websites. So these can be combined into commodity statistics. At the IEA we call these the world energy statistics. And these are presented in the physical and physical terms. So for instance, kilotons for coal and oil. But then we need to apply some conversion factors in order to convert the commodity statistics in physical units into energy units, which would be the energy balances. So now we'll do another mentee. And the question is, so to convert mass, which we have in the commodity statistics to energy units, which is the unit of the energy balance, what type of conversion factor do we need. So these options are density, calorific value and carbon content. Okay, I see that there seems to be a consensus here so you are correct indeed calorific value is the correct answer here. And this these are presented in terms of energy per mass. To create an energy balance. First we have statistics by product, as I said, and now we know we need a calorific value. And then also there are some format changes applied which I'll discuss more later. And then these are the key steps you need to go through to create an energy balance. And again just to reiterate that the calorific value is the amount of heat obtained from one unit of the fuel and is the only way to convert a fuel quantity from physical units into energy units. So these are essential to creating an energy balance. So let's look at an example about why calorific values are so important. So here we have commodity balance for coal. And you can see in this commodity balance we have zero kilotons of statistical differences which is should demonstrate a good day quality. So then we're given these net calorific values and applying these to the different energy flows and the commodity balances we can create the energy balance. Except for now we have 200 terajoules of statistical differences. So, you can see how if the net calorific values are not accurate. We can have impacts in the energy balance. So it's very important that not only should good quality data for physical quantities be collected but calorific values as well. So when creating an energy balance there are several methodological choices that need to be made. So now I will explain more about the IEA methodology for creating an energy balance and what we the methodology that we use for all these points and that we recommend that you use as well. If you're developing your own energy balance. So first of all we need a common unit of account for the energy balance. So this could be energy, any energy unit by the IEA has chosen jewels. Although we've recently moved over from 1000 tons of oil equivalent so you'll see that many of our energy balances are still 1000 tons of oil equivalent. But the any option would work here but it is important that you choose an energy unit that is relevant to your users and appropriate for the scale the magnitude of the energy products energy quantities displayed. So the next methodological choice is whether to use net or gross calorific values. So the difference between net calorific value and gross calorific value is the latent heat of vaporization of the water produced during combustion. So this is a 5% about a 5% difference for coal and oil and about a 10% difference for natural gas. So this is is a very significant difference when comparing net calorific and gross calorific values. Therefore it's extremely important that the energy balance is consistent and what whether to use a net calorific value or gross calorific value basis. So the IEA has chosen a net calorific value basis and this is in line with the international recommendations for energy statistics. So therefore gas which is collected in on a gross basis in the gas statistics would need to be converted to a net basis in order to be accounted consistently within the energy balance. So I'll briefly mention this point. So calorific values can be chosen by different and can vary over time between commodities from country to country and flow from in flow to flow. So it's very important that calorific values are chosen carefully. Depending on the product flow country and time. So very important methodological choice is how to determine the primary energy equivalent of non combustible sources. So this choice is unique to energy balances. So to explain combustible sources have a measurable inputs in the context of a transformation. So for instance, we know how much natural gas is being input into an electricity plant for transformation into electricity. But for non combustible sources like nuclear geothermal solar wind and wave, we generally only know the output such as electricity or heat output, but how much is the related amount of primary energy. So this primary energy amount is very important because we need to account for it in our energy balances. We can't just have the output coming from apparently nothing. So the in order, we first need to identify what is the primary form of energy that we want to consider. And so the idea considers the first energy form downstream for which multiple energy uses are practical. This will vary by source. So the primary energy form for nuclear geothermal and solar thermal is heat and for hydro wind, wave and ocean and solar photovoltaics the primary energy form is electricity. So take the example of hydro. When choosing a primary energy form, it would not be practical to for instance measure the kinetic energy of falling water in the turbines. So the first usable form of energy from hydro is the electricity output. Therefore, that is our primary energy form. So now that we know the primary energy form, we need to quantify that value so we need to calculate the primary energy equivalent. So in order to do this the IA has adopted the physical energy content method. So, using this method the primary energy equivalent refers to the physical energy content of the primary energy source chosen in the previous step. So using this method the implied efficiencies are 100% for sources non combustible sources that have electricity as the primary energy form. So for instance, we have electricity output from hydro. And because electricity output is the primary energy form for hydro therefore the implied efficiency is 100%. For an example, we have 33% nuclear for electricity generation so because we have identified heat as the primary energy form for nuclear so that is the heat coming generated from the nuclear reactors. Then we need to have a conversion between the electricity output and calculate the heat the implied heat that would be used to calculate that would be used to produce that electricity. So this is another slide to represent how primary energy equivalent is calculated from energy outputs. So let's say you have 1000 terajoules of electricity and we know from wind and we know the implied efficiency with this method is 100% therefore we can calculate the primary energy equivalent is 1000 terajoules of wind. And then you can see that how for different energy, different fuel types, how the primary energy equivalent varies depending on the implied efficiency. So now we'll do another mentee to put this concept into practice so what is the primary energy equivalent for solar thermal with 1000 terajoules of electricity produced. So I'd like to just point out that this is for solar thermal. So there is a conversion between the primary energy form of heat of solar thermal to the electricity produced, which we are given as 1000 terajoules. Okay, I see we've had a couple different answers here so the correct answer is indeed 3030 terajoules. So we'll look at this more in the exercises. But the reason that the correct answer is 3030 terajoules is because we have 1000 terajoules of electricity. The implied efficiency of solar thermal is 33% for electricity generation. So we need to note, given that we have the electricity output amount, we need to calculate the heat because heat is the primary energy form for solar thermal. So then we apply that 33% efficiency to get 3030 terajoules. So this will come up again in the exercises. And of course, you can email us if you need additional explanation and resources. So now I'll just briefly discuss the energy balance layout. So you've already seen this energy balance but let's look at some of the format changes that I mentioned as being key to creating an energy balance in a previous slide. So you'll notice that refined products and electricity because they're secondary secondary energy products production is zero in an energy balance. So production is used to account for production of primary energy products only secondary energy products. And therefore the output of transformation, aka production and the commodity statistics is accounted for in the transformation sector in the energy balance. So another key feature of the energy balance is in the total column we have total energy supply, and this number is very important and it represents the total available energy available to a country to be consumed domestically. So let's look at the transformation sector. So in a very important convention in the energy balance is that negative values in the transformation sector represent input to transformation processes. Positive values represent an output from transformation processes. So for instance, let's look at the crude oil and oil products column. We have a negative number under crude oil in the oil refineries row. This represents input crude oil being input to refineries for transformation. And then in the next column over oil products we have a positive number in the oil refineries row. And this represents oil products being output from this transformation product transformation process. And then if we look in the total column because total is the sum of all the products, we can see the transformation losses in the total column and they appear as a negative figure here. So I'll just quickly describe some of the uses of energy balances before we go to Q&A. So energy balances can be combined with socioeconomic statistics in order to create energy indicators. So population and GDP are often used to create some energy indicators and I will discuss some of these now. So for instance, from an energy balance we can calculate the indicator total energy supply per capita and total energy supply per capita can be useful in looking at how countries economy is developing, especially as an increasing total energy supply per capita can indicate increased access to energy in households and improve quality of life. Another indicator is TES per GDP, also known as energy intensity. So this indicator can represent the energy efficiency of a country. So how efficiently a country can transform energy into wealth. So of course we want this indicator to be low so that to demonstrate that a country can efficiently use its energy resources to create wealth. Another indicator is self-sufficiency. So this is calculated as production over total energy supply. So if this indicator is greater than 100%, that indicates that the country has net exports of the fuel that you are calculating the indicator for. And if it's less than 100%, this indicates net imports. So this essentially answers the question, can a country produce what it consumes? Is it self-sufficient? And then once we have our energy balances, we can then use this to calculate CO2 emissions estimates, which of course is extremely important for a country to know in terms of their climate goals and contribution to climate change. And we can also use energy balances to calculate some of the official sustainable development goals. So for instance, energy balances are used to calculate the SDG 7.2, modern renewable shares in total final energy consumption. So that's a brief introduction to energy balances and to summarize energy balances require good quality statistics in both physical data and calorific values. There are a compact source of energy information and a very clear way of displaying the information on a country's entire energy system. They enable accurate checks of energy statistics, such as transformation efficiencies, and they constitute the foundation for basic energy indicators, energy accounts, and for CO2 emissions estimates. So we have energy balance data on our website along with lots of other statistics that you can explore. And I'm sure you've seen this page already, but we also have lots of resources and information in different manuals about and these documents also include information on energy balances in addition to fuel statistics. And if you have any questions, please do not hesitate to reach out to balances at ie.org and of course we'll have a short Q&A session now.