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Development of a National Vision
An Analytic Framework – Irish TIMES

Brian Ó Gallachóir, Alessandro Chiodi, Maurizio Gargiulo & Paul Deane

Ireland in 2050: A Low Carbon Future – EPA/NESC

14th November 2012 Customs House Dublin
     November 2012, Customs House, Dublin



                                            *
Irish TIMES Project
Partners




Funded by
>200 MARKAL / TIMES Users
TIMES Modelling

                                     Cost and emissions balance

                                                                        TIMES model
               source availability




                                                                                                                       GDP
                                                               Coal processing
                                                                                                                   Process energy
                                         Domestic                                                  Industry
                                         sources                                                                    Heating area
                                                                    Refineries
                      a




                                                                                                                     Population
                                                                                                                     P   l ti
                                                                                               Commercial and
                                                                Power plants                    tertiary sector        Light
                                                                    and
        ces, Res




                                                               Transportation                                      Communication

                                                                                                 Households            Power




                                                                                                                                    Dem
                                                                 C
                                                                 CHP p a ts
                                                                      plants                                           Person




                                                                                                                                      mands
Ener pric




                                                                 and district                                        kilometers
                                                                heat networks
   rgy




                                         Imports                                                Transportation         Freight
                                                                                                                     kilometers
                                                                Gas network


                                                   Primary energy
                                                   Pi                            Final
                                                                                 Fi l energy                      Service Demands
                                                                                                                  S
Why bother modelling?
• We can’t predict the future
• Can’t small changes in inputs change the results?
However ….
• We have targets and goals that we need to meet
• Uncertainty is not an excuse for inaction
…. and robust well bounded models ….
• avoid chaotic solutions
     id h ti       l ti
• can provide very useful insights regarding the future
• can generate a knowledge base to underpin policy
• can point to least risk choices via scenarios
      p
• can strengthen our negotiating position
One purpose – Improved negotiation

EU Analysis 2008
        y
SEC[2008] 85 Vol II - Page 43 Table 4
– cost optimal 10% EU-non-ETS target €40 - €50/tCO2
– non-ETS GHG reduction for Ireland of 17%


Irish
I i h TIMES S
            Scenario A l i 2011
                  i Analysis

[€2000/ton CO2]          Scenario                2020

Non ETS
Non-ETS emissions        NETS GHG
                         NETS-GHG               212.9
Second purpose – Inform climate policy


Scenario   Description
           energy system demands met in the absence of emissions reduction
REF
           targets.
Second purpose – Inform climate policy


Scenario   Description
           energy system demands met in the absence of emissions reduction
REF
           targets.

           80% CO2 emissions reduction below 1990 l l b 2050 A i lt
                        i i       d ti b l           levels by 2050. Agriculture
CO2-2050
           emissions are implicitly assumed to meet 80% reduction also.
Second purpose – Inform climate policy


Scenario     Description
             energy system demands met in the absence of emissions reduction
REF
             targets.

             80% CO2 emissions reduction below 1990 l l b 2050 A i lt
                          i i       d ti b l           levels by 2050. Agriculture
CO2-2050
             emissions are implicitly assumed to meet 80% reduction also.

         95% CO2 emissions reduction target below 1990 levels (-96.6% relative
GHG-2050 to 2005). Agriculture is assumed to meet a 50% emissions reduction
         by 2050.
           y
Scenarios: REF

           50


           40                                                REF

           30
Mt CO2eq




           20       ‐23.8% below 2005                                          34 Mt
M




                    +12.2% above 1990
                    +12 2% b     1990

           10


            0
             2005   2010     2015       2020   2025   2030    2035   2040   2050
       ‐10
Scenarios: CO2-2050

           50


           40                                          REF

           30
Mt CO2eq




           20
M




                                                       CO2‐2050
                                                       CO2 2050
           10
                                                                  6 Mt

            0
             2005   2010   2015   2020   2025   2030    2035   2040      2050
       ‐10
Scenarios: GHG-2050

           50


           40                                                  REF

           30
Mt CO2eq




           20
M




                    Agriculture GHG in 2050 =                  CO2‐2050
                                                               CO2 2050
                     Agriculture GHG in 2020
           10

                                                                       GHG‐20501      ‐8 Mt
            0
             2005    2010      2015      2020    2025   2030    2035    2040   2050
       ‐10
Scenarios : GHG-2050

           50


           40                                               REF

           30
Mt CO2eq




           20
                     ≈50% expected
                      50% expected 
M




                                                            CO2‐2050
                                                            CO2 2050
                       reduction in 
           10        Agriculture GHG                              GHG‐2050
                                                                                1.5 Mt


            0
             2005   2010    2015       2020   2025   2030    2035     2040   2050
       ‐10
EE, Fuel Switching and RE
M
                                                      Mt CO2eq




                      0
                             5
                                     10
                                               15
                                                      20
                                                           25
                                                                30
                                                                       35
                                                                              40
                                                                                   45
                                                                                           50
                                                                                    44.7




2005
               REF
                 F
                                                                       33.7



        Transport
                t                                               14.8

       Electricity 
                                                5.8
       generationn
          Industry
                 y                       3
                                         3.6


       Residential                2.3


          Services
                 s           1.2
                                   6.0




        CO2‐2050
               0

2050    Transport
                t           0.0

       Electricity 
                            1.2
       generationn
          Industry
                 y     0.0


       Residential    1.7


          Services
                 s    0.7


       Agriculture 0.8
                 e
                            1.5




       GHG‐2050
              0
                                                                                                Scenario Results: 2050 Emissions Reductions
M
                                                      Mt CO2eq




                      0
                             5
                                     10
                                               15
                                                      20
                                                           25
                                                                30
                                                                       35
                                                                              40
                                                                                   45
                                                                                           50
                                                                                    44.7




2005
               REF
                 F
                                                                       33.7



        Transport
                t                                               14.8

       Electricity 
                                                5.8
       generationn
          Industry
                 y                       3
                                         3.6


       Residential                2.3


          Services
                 s           1.2
                                   6.0




        CO2‐2050
               0

2050    Transport
                t           0.0

       Electricity 
                            1.2
       generationn
          Industry
                 y     0.0


       Residential    1.7


          Services
                 s    0.7


       Agriculture 0.8
                 e
                            1.5




       GHG‐2050
              0
                                                                                                Scenario Results: Sectoral Emissions Reductions
Scenario Results: 2050 Residential TFC
       3500

       3000

       2500

       2000                                                                                                                                                                          Electricity
 toe




                                                                                                                                                                                     Elec‐th
kt




       1500                                                                                                                                                                          Heat
                                                                                                                                                                                     Renewable
       1000                                                                                                                                                                          Gas
                                                                                                                                                                                     G
                                                                                                                                                                                     Oil
       500
                                                                                                                                                                                     Coal+Peat

          0
              2005



                                   2050




                                                                   2050




                                                                                                   2050




                                                                                                                                   2050




                                                                                                                                                                   2050
                         REF




                                                         REF




                                                                                         REF




                                                                                                                         REF




                                                                                                                                                         REF
                                              2050




                                                                              2050




                                                                                                              2050




                                                                                                                                              2050




                                                                                                                                                                              2050
              2



                               CO2‐2
                                          GHG‐2



                                                               CO2‐2
                                                                          GHG‐2



                                                                                               CO2‐2
                                                                                                          GHG‐2



                                                                                                                               CO2‐2
                                                                                                                                          GHG‐2



                                                                                                                                                               CO2‐2
                                                                                                                                                                          GHG‐2
                     .     2010                      .     2020                      .     2030                      .     2040                      ‐     2050
Scenario Results: 2050 Transport
       2500



       2000



       1500
ktoe




                                                                                              Electricity
k




                                                                                              Biogas
       1000
                                                                                              Biodiesel
                                                                                              Natural Gas
                                                                                              Diesel
       500
                                                                                              Gasoline


         0
                       CO2‐80



                                CO2‐95




                                                 CO2‐80



                                                          CO2‐95




                                                                            CO2‐80



                                                                                     CO2‐95
              REF




                                         REF




                                                                   REF
                     Private                   Freight                     Public 
                    Transport                                            Transport
                                               2050
Scenario Results: 2050 Electricity Demand
        5000

        4500

        4000

        3500

        3000
                                                                                                                                                                       Transport
 ktoe
    e




        2500                                                                                                                                                           Residential
                                                                                                                                                                       Industry
        2000
                                                                                                                                                                       Power Sector

        1500                                                                                                                                                           Services
                                                                                                                                                                       Agriculture
        1000

        500

          0
                                      0
                                 CO2‐80
                                          CO2‐95




                                                                   0
                                                              CO2‐80
                                                                       CO2‐95




                                                                                                0
                                                                                           CO2‐80
                                                                                                    CO2‐95




                                                                                                                             0
                                                                                                                        CO2‐80
                                                                                                                                 CO2‐95




                                                                                                                                                          0
                                                                                                                                                     CO2‐80
                                                                                                                                                              CO2‐95
               2005
                  5


                          REF




                                                       REF




                                                                                    REF




                                                                                                                 REF




                                                                                                                                              REF
                      .         2010               .         2020               .         2030               .         2040               ‐         2050
Scenario Results: 2050 Electricity Generation
        6000


        5000


        4000
                                                                                                                                                         Other
                                                                                                                                                         Import/Export
        3000
                                                                                                                                                         Renewables
 ktoe




                                                                                                                                                         Gas CCS
        2000                                                                                                                                             Gas
                                                                                                                                                         Oil
        1000                                                                                                                                             Coal CCS
                                                                                                                                                         Coal+Peat
           0
                2005



                              ‐2050
                                         ‐2050



                                                        ‐2050
                                                                   ‐2050



                                                                                  ‐2050
                                                                                             ‐2050



                                                                                                            ‐2050
                                                                                                                       ‐2050



                                                                                                                                      ‐2050
                                                                                                                                                 ‐2050
                                REF




                                                          REF




                                                                                    REF




                                                                                                              REF




                                                                                                                                        REF
                           CO2‐




                                                     CO2‐




                                                                               CO2‐




                                                                                                         CO2‐




                                                                                                                                   CO2‐
                                      GHG‐




                                                                GHG‐




                                                                                          GHG‐




                                                                                                                    GHG‐




                                                                                                                                              GHG‐
        ‐1000

                       .     2010                .     2020                .     2030                .     2040                ‐     2050
Scenario Results: 2050 Renewable Energy
        6000
                               CO2‐2050                                        GHG‐2050
                                68% RES
                                68% RES                                         85% RES
                                                                                85% RES
        5000
                     Currently
                                                             Biomass
                  RES‐E  467 ktoe
        4000      RES‐T    98 ktoe
                  RES‐H  218 ktoe
   oe




        3000                   BioEthanol                                BioEthanol
 kto




                                 Biogas                                    Biogas

        2000                                                  Wind

                 Wind          Biodiesel    Biomass                      Biodiesel
        1000                                                                          Biomass

                                                           Ocean
                                                           Hydro
                 Hydro
          0 Biogas and Waste                          Biogas and Waste
                  RES E
                  RES‐E          RES T
                                 RES‐T      RES H
                                            RES‐H             RES E
                                                              RES‐E        RES T
                                                                           RES‐T      RES H
                                                                                      RES‐H
                               CO2‐2050                                  GHG‐2050
                                                      2050
The costs .. MACC..


Scenario           2020    2030    2040      2050
CO2 80
CO2-80              33     136      99        273
CO2-85              33     131     158        523
CO2-90
CO2 90              33     127     158        694
CO2-95 =GHG-80      65     185     173       1308
NETS-20/CO2-80     167      113        116   273
NETS-80
NETS 80            141      97         87    554
The costs .. System Costs..
The costs .. System Costs / GDP
Next Steps

• Consultation with stakeholders
• Update input assumptions
• Improve energy efficiency options
• Reintegrate within European PET model
• Model electrification (heating and transport) within
  PLEXOS
• Move to co-optimisation (energy and agriculture
  together).
• Feedback to economy (elastic demand and CGE)
Thank You



                 Energy Policy 
                       & 
                Modelling Group




Energy Policy and Modelling Group on

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Development of a National Vision - An analytic frameowrk - Irish TIMES

  • 1. Development of a National Vision An Analytic Framework – Irish TIMES Brian Ó Gallachóir, Alessandro Chiodi, Maurizio Gargiulo & Paul Deane Ireland in 2050: A Low Carbon Future – EPA/NESC 14th November 2012 Customs House Dublin November 2012, Customs House, Dublin *
  • 3. >200 MARKAL / TIMES Users
  • 4. TIMES Modelling Cost and emissions balance TIMES model source availability GDP Coal processing Process energy Domestic Industry sources Heating area Refineries a Population P l ti Commercial and Power plants tertiary sector Light and ces, Res Transportation Communication Households Power Dem C CHP p a ts plants Person mands Ener pric and district kilometers heat networks rgy Imports Transportation Freight kilometers Gas network Primary energy Pi Final Fi l energy Service Demands S
  • 5. Why bother modelling? • We can’t predict the future • Can’t small changes in inputs change the results? However …. • We have targets and goals that we need to meet • Uncertainty is not an excuse for inaction …. and robust well bounded models …. • avoid chaotic solutions id h ti l ti • can provide very useful insights regarding the future • can generate a knowledge base to underpin policy • can point to least risk choices via scenarios p • can strengthen our negotiating position
  • 6. One purpose – Improved negotiation EU Analysis 2008 y SEC[2008] 85 Vol II - Page 43 Table 4 – cost optimal 10% EU-non-ETS target €40 - €50/tCO2 – non-ETS GHG reduction for Ireland of 17% Irish I i h TIMES S Scenario A l i 2011 i Analysis [€2000/ton CO2] Scenario 2020 Non ETS Non-ETS emissions NETS GHG NETS-GHG 212.9
  • 7. Second purpose – Inform climate policy Scenario Description energy system demands met in the absence of emissions reduction REF targets.
  • 8. Second purpose – Inform climate policy Scenario Description energy system demands met in the absence of emissions reduction REF targets. 80% CO2 emissions reduction below 1990 l l b 2050 A i lt i i d ti b l levels by 2050. Agriculture CO2-2050 emissions are implicitly assumed to meet 80% reduction also.
  • 9. Second purpose – Inform climate policy Scenario Description energy system demands met in the absence of emissions reduction REF targets. 80% CO2 emissions reduction below 1990 l l b 2050 A i lt i i d ti b l levels by 2050. Agriculture CO2-2050 emissions are implicitly assumed to meet 80% reduction also. 95% CO2 emissions reduction target below 1990 levels (-96.6% relative GHG-2050 to 2005). Agriculture is assumed to meet a 50% emissions reduction by 2050. y
  • 10. Scenarios: REF 50 40 REF 30 Mt CO2eq 20 ‐23.8% below 2005 34 Mt M +12.2% above 1990 +12 2% b 1990 10 0 2005 2010 2015 2020 2025 2030 2035 2040 2050 ‐10
  • 11. Scenarios: CO2-2050 50 40 REF 30 Mt CO2eq 20 M CO2‐2050 CO2 2050 10 6 Mt 0 2005 2010 2015 2020 2025 2030 2035 2040 2050 ‐10
  • 12. Scenarios: GHG-2050 50 40 REF 30 Mt CO2eq 20 M Agriculture GHG in 2050 =  CO2‐2050 CO2 2050 Agriculture GHG in 2020 10 GHG‐20501 ‐8 Mt 0 2005 2010 2015 2020 2025 2030 2035 2040 2050 ‐10
  • 13. Scenarios : GHG-2050 50 40 REF 30 Mt CO2eq 20 ≈50% expected 50% expected  M CO2‐2050 CO2 2050 reduction in  10 Agriculture GHG GHG‐2050 1.5 Mt 0 2005 2010 2015 2020 2025 2030 2035 2040 2050 ‐10
  • 15. M Mt CO2eq 0 5 10 15 20 25 30 35 40 45 50 44.7 2005 REF F 33.7 Transport t 14.8 Electricity  5.8 generationn Industry y 3 3.6 Residential 2.3 Services s 1.2 6.0 CO2‐2050 0 2050 Transport t 0.0 Electricity  1.2 generationn Industry y 0.0 Residential 1.7 Services s 0.7 Agriculture 0.8 e 1.5 GHG‐2050 0 Scenario Results: 2050 Emissions Reductions
  • 16. M Mt CO2eq 0 5 10 15 20 25 30 35 40 45 50 44.7 2005 REF F 33.7 Transport t 14.8 Electricity  5.8 generationn Industry y 3 3.6 Residential 2.3 Services s 1.2 6.0 CO2‐2050 0 2050 Transport t 0.0 Electricity  1.2 generationn Industry y 0.0 Residential 1.7 Services s 0.7 Agriculture 0.8 e 1.5 GHG‐2050 0 Scenario Results: Sectoral Emissions Reductions
  • 17. Scenario Results: 2050 Residential TFC 3500 3000 2500 2000 Electricity toe Elec‐th kt 1500 Heat Renewable 1000 Gas G Oil 500 Coal+Peat 0 2005 2050 2050 2050 2050 2050 REF REF REF REF REF 2050 2050 2050 2050 2050 2 CO2‐2 GHG‐2 CO2‐2 GHG‐2 CO2‐2 GHG‐2 CO2‐2 GHG‐2 CO2‐2 GHG‐2 . 2010 . 2020 . 2030 . 2040 ‐ 2050
  • 18. Scenario Results: 2050 Transport 2500 2000 1500 ktoe Electricity k Biogas 1000 Biodiesel Natural Gas Diesel 500 Gasoline 0 CO2‐80 CO2‐95 CO2‐80 CO2‐95 CO2‐80 CO2‐95 REF REF REF Private  Freight Public  Transport Transport 2050
  • 19. Scenario Results: 2050 Electricity Demand 5000 4500 4000 3500 3000 Transport ktoe e 2500 Residential Industry 2000 Power Sector 1500 Services Agriculture 1000 500 0 0 CO2‐80 CO2‐95 0 CO2‐80 CO2‐95 0 CO2‐80 CO2‐95 0 CO2‐80 CO2‐95 0 CO2‐80 CO2‐95 2005 5 REF REF REF REF REF . 2010 . 2020 . 2030 . 2040 ‐ 2050
  • 20. Scenario Results: 2050 Electricity Generation 6000 5000 4000 Other Import/Export 3000 Renewables ktoe Gas CCS 2000 Gas Oil 1000 Coal CCS Coal+Peat 0 2005 ‐2050 ‐2050 ‐2050 ‐2050 ‐2050 ‐2050 ‐2050 ‐2050 ‐2050 ‐2050 REF REF REF REF REF CO2‐ CO2‐ CO2‐ CO2‐ CO2‐ GHG‐ GHG‐ GHG‐ GHG‐ GHG‐ ‐1000 . 2010 . 2020 . 2030 . 2040 ‐ 2050
  • 21. Scenario Results: 2050 Renewable Energy 6000 CO2‐2050 GHG‐2050 68% RES 68% RES 85% RES 85% RES 5000 Currently Biomass RES‐E  467 ktoe 4000 RES‐T    98 ktoe RES‐H  218 ktoe oe 3000 BioEthanol BioEthanol kto Biogas Biogas 2000 Wind Wind Biodiesel Biomass Biodiesel 1000 Biomass Ocean Hydro Hydro 0 Biogas and Waste Biogas and Waste RES E RES‐E RES T RES‐T RES H RES‐H RES E RES‐E RES T RES‐T RES H RES‐H CO2‐2050 GHG‐2050 2050
  • 22. The costs .. MACC.. Scenario 2020 2030 2040 2050 CO2 80 CO2-80 33 136 99 273 CO2-85 33 131 158 523 CO2-90 CO2 90 33 127 158 694 CO2-95 =GHG-80 65 185 173 1308 NETS-20/CO2-80 167 113 116 273 NETS-80 NETS 80 141 97 87 554
  • 23. The costs .. System Costs..
  • 24. The costs .. System Costs / GDP
  • 25. Next Steps • Consultation with stakeholders • Update input assumptions • Improve energy efficiency options • Reintegrate within European PET model • Model electrification (heating and transport) within PLEXOS • Move to co-optimisation (energy and agriculture together). • Feedback to economy (elastic demand and CGE)
  • 26. Thank You Energy Policy  &  Modelling Group Energy Policy and Modelling Group on