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Emissions reduction potential assessment in regions of Kazakhstan using TIMES-16RKZ model B. Suleimenov, R. De Miglio, A. Kerimray National Laboratory Astana Nazarbayev University IEA-ETSAP Workshop 18 th -19 th November 2016 CIEMAT, Madrid, Spain

Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

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Page 1: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Emissions reduction potential assessment in regions of Kazakhstan

using TIMES-16RKZ model

B. Suleimenov, R. De Miglio, A. Kerimray

National Laboratory Astana

Nazarbayev University

IEA-ETSAP Workshop

18th-19th November 2016

CIEMAT, Madrid, Spain

Page 2: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Content

• Introduction

• TIMES-16RKZ model

• Scenarios

• Results

• Conclusions

Page 3: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Sankey diagram of energy balance in Kazakhstan 2014, Mtoe

53% of production is exported

Ratio between final energy consumption and domestic energy supply = 56%

High losses and energy industry own use

Page 4: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Regions of Kazakhstan16 administrative regions:

• GDP and its structure differs from region to region

• Different fuel energy mix by regions due to existing energy infrastructure (Soviet Heritage)

• Different climate conditions

• GRP per capita varies from the lowest 2.2k USD2005 to the highest 18.2k USD2005

• 11 times difference in regional energy intensity from the lowest to the highest

Page 5: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Regions of Kazakhstan

Regions of extractions of sub-bituminous coal (values in TJ, extraction in 2011)

Page 6: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Regions of Kazakhstan

Regions of extractions of crude oil (values in TJ, extraction in 2011)

Page 7: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Regions of Kazakhstan

Regions of extractions of associated gas (values in TJ, extraction in 2011)

Page 8: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Regions of Kazakhstan

Installed power capacity by region (values in MW in 2011)

Page 9: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

TPES by region

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000

AKM

AKT

ALM

ATY

WKZ

ZHA

KAR

KST

KZL

MAN

SKZ

PAV

NKZ

EKZ

AST

ALC

Total primary energy supply by fuel type in 2014, (ktoe)

Coal Crude Oil Gas Biofuels and waste

• 16 regional energy balances were collected and reclassified

Generating capacities, oil refinery, heavy industry

CHP plants, Heavy industry

Oil Refinery, oil and gas extraction

Page 10: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

So why regional model?

• Resource availability

• Different growth rates by regions

• Economic structure

• Climate differences

• Region oriented climate and energy policies test

Page 11: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

TIMES-16RKZFo

ssil

fuel

s m

inin

g (O

il an

d g

as, c

oal

)

Transformation sectors

Power sector (electricity and

heat)

Refinery

Gas processing

Coal transformation

Demand sectors

Residential sector(Heating, cooling, lightning, washing,

refrigerators and etc.)

Commercial sector(Heating, cooling, lightning, washing,

refrigerators and etc.)

Industry(Iron and steel, aluminum, non-ferrous

metals, cement, chemicals, mining, construction and etc.)

Transport(Cars, light and heavy trucks, busses and etc.)

Agriculture

direct consumption

Electricity and heat

Oil products

LPG and stripped gas

Coke oven coke, blast furnace gas and etc.

Page 12: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Drivers

0.000

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

2011 2020 2030 2040 2050

GRP growth rate (2011=1)AKM

AKT

ALM

ATY

WKZ

ZHA

KAR

KST

KZL

MAN

SKZ

PAV

NKZ

EKZ

AST

ALC

0.000

0.500

1.000

1.500

2.000

2.500

3.000

2011 2020 2030 2040 2050

Population growth rate (2011=1)AKM

AKT

ALM

ATY

WKZ

ZHA

KAR

KST

KZL

MAN

Model drivers: GDP, GDPP and population are very different from region to regionService elasticities to drivers from national model, inelastic demand projections

0.5

1

1.5

2

2.5

3

Historic GDP growth of Kazakhstan

GDP

Page 13: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Scenarios

INDCLimits GHG emissions from fuel combustion to 198.9 Mt CO2 eq. at national level (stabilization at current level)

-50000.00

0.00

50000.00

100000.00

150000.00

200000.00

250000.00

300000.00

350000.00

400000.00

450000.00

1990 1995 2000 2005 2010 2014

GHG emissions trend in Kazakhstan, kt CO2 eq.

5. Waste

4. Land use, land-usechange and forestry(1)

3. Agriculture

2. Industrial processes andproduct use

1. Energy

1990 minus 15% (INDCtarget)

BaUWithout implementing any constraint on GHG emissions.

• INDC unconditional target of Kazakhstan is to reduce GHG emissions by 15% compared to 1990 level (317.3 Mt)

• In 2014 the target has been already exceeded by 7%

• Ambitious target!

Page 14: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Results

Most emissions reductions occur in 3 regions: Almaty, Karaganda and Pavlodar. Last 2 regions are regions with heavy industries and main electricity generation capacities.

194.5211.1

230.8210.6

198.9

0.0

50.0

100.0

150.0

200.0

250.0

1 2 3

Total GHG emissions from fuel combustion, Mt

BaU

INDC

-5

0

5

10

15

20

Differences in GHG emissions from fuel combustion between BaU and INDC scenario by

regions in 2030, Mt

Total GHG emissions in the system from fuel combustionDifference between BaU and INDC scenario is about 32 Mt CO2 eq in 2030

Page 15: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Emissions reduction has lower cost

in supply side than in demand

side. Therefore 28.6 Mt GHG emission reduction comes from supply and only 3.3 Mt from demand side.

75.681.0

91.3

118.9130.1

139.5

80.888.0

129.9110.9

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

2011 2020 2030 2011 2020 2030

Demand Supply

GHG emissions from fuel combustion, Mt

BaU

INDC

-0.09

0.17

27.88

1.24 1.32 0.56 0.51

-5.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

Differences in CO2 emissions from fuel combustion between Business as usual and INDC scenario by

regions of KZK, mln t

2020 2030

Emission reduction potential by sectors

Energy sector emission reduction based on both improved efficiency and decreased production.

Page 16: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

INDC scenario requires 21% less coal

than BaU. Oil and gas at same level.

But TFC in INDC scenario is only 4% less than in BaU scenario.

INDC target reached by increasing

efficiency of energy supply, TFC/TPES increased by 4.6% in 2030.

0

200

400

600

800

1000

1200

1400

1600

1800

2000

BaU INDC BaU INDC

2011 2020 2030

Total final consumtion, PJ

Agriculuture

Commercial

Residential

Transport

Industry

0

500

1000

1500

2000

2500

3000

3500

BaU INDC BaU INDC

2011 2020 2030

Primary energy supply, PJ

Oil

Gas

Coal

49.9%

54.4% 54.4% 57.9% 62.5%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

0 BaU INDC BaU INDC

2011 2020 2030

TFC/TPES

Energy supply and demand

Page 17: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Power generation

• In INDC scenario electricity and heat generation decreased by 6.3% and 3.5% accordingly compared to BaU

• Coal based Pavlodar and Karaganda remain main electricity producers in BaU

• In INDC new capacities are installed in the regions with high demand growth

-40000

-30000

-20000

-10000

0

10000

20000

30000

40000

50000

60000

AKM AKT ALC ALM AST ATY EKZ KAR KST KZL MAN NKZ PAV SKZ WKZ ZHA

Difference between BaU and INDC electricity generation, TJ

2020

2030

0

100000

200000

300000

400000

500000

600000

700000

2011 2020 2030 2011 2020 2030

Electricity Heat

Electricity and heat generation, TJ

BaU

INDC

Page 18: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Heat generation is more or less same in two scenarios by regions.

-30000 20000 70000 120000 170000 220000

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaU

BaUA

KM

AK

TA

LCA

LMA

STA

TYEK

ZK

AR

KST

KZL

MA

NN

KZ

PA

VSK

ZW

KZ

ZHA Electricity and heat generation by regions in 2030, TJ

Electricity

Heat

Power and heat generation

Page 19: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Coal consumption decreased and gas

consumption at same level, systems overall efficiency increased

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

BaU INDC BaU INDC BaU INDC

Generationefficiency

Share of hydro Share of wind

2011

2020

2030

-90000

-40000

10000

60000

110000

160000

Coal Gas Fuel oil

In order to meet INDC target system uses more efficient generation technologies and installed wind power plant with share of generation 4.5%. Hydro power plants generation are same in both scenarios.

Fuel consumption for power generation and RES

Page 20: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Investments

-150

-100

-50

0

50

100

150

200

AKM AKT ALC ALM AST ATY EKZ KAR KST KZL MAN NKZ PAV SKZ WKZ ZHA

Difference in investments by regions in BaU and INDC scenario, mln$

2020

2030

More investments in the regions with high demand growth, less investments in coal regions

Page 21: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Result from national TIMES KZK model

INDC (- 15% 1990)305

424

526

654

329

341399

494

591

380

447

508

307

344

375389

250

350

450

550

650

2011 2015 2020 2025 2030 2035 2040 2045 2050

MtC

O2

eq

GHG emissions scenarios

Baseline INDC ETS

ETS_HS ETS_HS & ADJ ETS_HS & CO2Tax

Differences in the results• National model: In Baseline scenario, the gap between emissions and the INDC target

reaches 59 MtCO2eq in 2030 • Regional model: 32 Mt CO2eq in 2030• National model uses higher GDP growth rate and sectoral drivers from CGE model,

regional model more pessimistic• More work will be done on comparing the results and understanding the differences

Page 22: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Conclusions

• INDC target can be achieved by– gradual retirement of old coal generating capacities

– coal consumption, obviously, must be decreased

– new generating capacities in the regions with highest demand growth

– gas power generation in already gasified regions > no need for gas pipeline (in contrast with national model results)

• Regionalized energy and climate policies needed

• Significant advantages comparing to national model (energy demand distribution, particularly heating, energy prices by regions etc.)

Page 23: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Future work

• Regional renewable energy penetration potential

• Different national and regional economic development scenarios

• Different regional burden sharing of GHG emissions reduction

• Disaggregation of housing stock

Page 24: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

This research was funded under the target program

№0115РК03041 “Research and development in the fields of

energy efficiency and energy saving, renewable energy

sources and environmental protection for years 2014-2016”

from the Ministry of Education and Science of the Republic of

Kazakhstan.

The provision of data by the Committee of Statistics of the

Republic of Kazakhstan, Information Analytical Center on Oil

and Gas, Ministry of Energy of the Republic of Kazakhstan is

greatly acknowledged.

Acknowledgements

Page 25: Emissions reduction potential in regions of Kazakhstan using TIMES-16RKZ model

Thank you!

Any questions?

[email protected]