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Impacts of Czech brown coal mines enlargement: assessment by energy model TIMES-CZ 1st AIEE Energy Symposium Current and Future Challenges to Energy Security Lukáš Rečka [email protected] Milan Ščasný Milan, 1st December, 2016

Impacts of Czech brown coal mines enlargement: assessment ...Impacts of Czech brown coal mines enlargement: assessment by energy model TIMES-CZ 1st AIEE Energy Symposium Current and

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Impacts of Czech brown coal mines enlargement: assessment by energy model TIMES-CZ

1st AIEE Energy Symposium

Current and Future Challenges to Energy Security

Lukáš Rečka [email protected]

Milan Ščasný

Milan, 1st December, 2016

Motivation

Gross electricity production by resource and gross electricity consumption in

the Czech Republic in 1993-2013

0

10

20

30

40

50

60

70

80

90

100

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

TW

h

Wind

Biogas

Solar

Hydro

Biomass

Oil

Natural gas

Nuclear

Other

Brown coal/lignite

Hard coal

Gross electricity consumption

Source: Eurostat

Assess the impacts of possible extension of Czech brown coal mines on Czech energy system

• 4 scenarios to assess the ‘breaking’ of the territorial ecological limits (TEL)

0

100

200

300

400

500

600

2015 2020 2025 2030 2035 2040 2045 2050

PJ

Planned mining of Brown coal

TEL4

TEL3

TEL2

TEL1

Source: Ščasný et al., (2015)

TIMES-CZ

Model of the Czech Energy System including the whole energy ballance

• based on Czech region of TIMES-PanEU

• Updated from 2010 to 2012 data

• ETS sectors disagreated on plant level (except Iron and Steel industry)

• Non-ETS sectors as in TIMES-PanEU

• time horizon 2012-2050

• 5 year periods

• ETS sectors: plant-level data of fuel use, emissions and electricity/heat generated

• District heating partly regionalized

• RES potentials based on State Energy Policy (SEP)

• Reserves of brown coal according to 4 variants of territorial ecological limits

• Capital costs of new technologies based on DIW (2013)

• Fuel cost base on World Energy Outlook 2014

PES

BC reserves

BC Imp./Exp.

Ele

ctr

icit

y

Co

ke

Dis

tric

t h

ea

t

Naft

a

Ga

so

lin

e

Ga

s

Ste

am

Households

BC heating

Gas heating

BM heating

ELC heating

Gas water boiler

District heating

Elc. water boiler

Elc. heat pump

Oil reserves

Oil Import

HC reserves

HC Imp./Exp.

Gas reserves

Gas Import

Biomass

potential

PV, CSP &

thermosolar

potential

Conversion

Sector

Coal processing

Refinery

Heat & Power

generation

Individual ETS sources

Residual heat plants

Nuclear power plants

Residual autoproducers

RES

Electrolysis

Gasisfication Liquefication

Gas processing

Ga

s

Bio

ma

ss

HC

BC

Oil

Win

d

Wa

rm w

ate

r

Ro

om

he

at

Wa

rm w

ate

r

Ro

om

he

at

Pro

ce

s. h

ea

t

LH

2

Commercial Room heat boilers

Process heat boilers

Warm water boilers

Industry

Transport Road

Road - freight

Rail - passanger

Rail - freight

Wind

potential

TIMES-CZ Structure

Scenarios assumptions

1) 4 variants of TEL

2) 3 Nuclear development pathways

3) 3 set of fuel price development

4) 4 EUA price scenarios

0%

10%

20%

30%

40%

50%

60%

2015 2020 2025 2030 2035 2040 2045 2050

Share of nuclear on electricity production

a) SEP b) NoNew c) NoNew+DU

0

2

4

6

8

10

12

14

16

18

20

Ha

rd c

oa

l

Na

tura

l ga

s

Oil

Bro

wn

co

al - C

zech

Bro

wn

co

al - im

po

rt

Ha

rd c

oa

l

Na

tura

l ga

s

Oil

Bro

wn

co

al - C

zech

Bro

wn

co

al - im

po

rt

Ha

rd c

oa

l

Na

tura

l ga

s

Oil

Bro

wn

co

al - C

zech

Bro

wn

co

al - im

po

rt

WEO-450 Weighted WEO-Cur-pol.

€/G

J

Fuel price assumptions €/GJ

2015

2020

2025

2030

2035

2040

2045

20500

20

40

60

80

100

120

140

160

€/tC

O2

EUA price scenarios

SEP

WEO-Cur-pol.

WEO-450

Low

Scenarios

• 36 scenarios analized

• 9 for each of 4 TEL variants

Parameter/

Assumption set BL

BL-

N

BL-

N+D

CP

CP

-N

CP

-N+D

EUA

low

-

Fave

r

EUA

low

-

Fhig

h

45

0p

pm

Fossil fuel price

WEO-450 (low) x

Weighted (middle) x x x x

WEO-CP (high) x x x x

EUA price

SEP x x x

WEO-Cur-pol x x x

WEO-450 x

Low x x

Nuclear power

SEP x x x x x

NoNew x x

NoNew+DU x x

Results – sensitivity analysis • Brown coal

• Basiseline assumption set – 4 TEL variants: consumption and mining

• SA: Brown coal consumption in all 36 scenarios

• Power generation porfolio

• TEL 1 three baseline assumption set with diffeternt nuclear pathways

• Difference in electricity production shares in TEL2’s scenarios

compared to TEL1 BL

• GHGs emissions

• Basiseline assumption set – 4 TEL variants

• Cumulative GHG emission in all 36 scenarios

• Costs

• Undiscounted costs in milestone years of TEL1 BL

• difference of TEL2 assumption sets compared with scenario TEL1 BL

• Externalities

BL: Brown coal consumption & mining

0

100

200

300

400

500

600

2015 2020 2025 2030 2035 2040 2045 2050

PJ

TEL 4 Domestic demand

TEL 3 Domestic demand

TEL 2 Domestic demand

TEL 1 Domestic demand

TEL4

TEL3

TEL2

TEL1

0

50

100

150

200

250

300

350

400

450

500B

LB

L-N

BL

-N+

DC

PE

UA

low

-Fh

igh

CP

-NC

P-N

+D

EU

Alo

w-F

ave

r4

50

pp

m BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

2020 2030 2040 2050

PJ

BC consumption in milestone years and cumulative

2015-2050

0

2000

4000

6000

8000

10000

12000

14000

BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

2015-2050

PJ

TEL1

TEL2

TEL3

TEL4

Power generation porfolio TEL 1 BL, BL-N, BL-N+D

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

BL

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

BL-N

20

15

20

20

20

25

20

30

20

35

20

40

20

45

20

50

BL-N+D

HC BC NUC NG Water PV Wind BM Other

Difference in power generation in TEL2’s

scenarios compared to TEL1 BL

-40

-30

-20

-10

0

10

20

30

40

20

20

20

30

20

40

20

50

20

25

20

35

20

45

20

20

20

30

20

40

20

50

20

25

20

35

20

45

20

20

20

30

20

40

20

50

20

25

20

35

20

45

20

20

20

30

20

40

20

50

20

25

20

35

20

45

20

20

20

30

20

40

20

50

BL 450ppm CP EUAlow-Fhigh

EUAlow-Faver

CP-N CP-N+D BL-N BL-N+D

Pe

rce

nta

ge

po

ints

HC

BC

NUC

NG

BM

Other

GHG emission

0

20

40

60

80

100

120

2015 2020 2025 2030 2035 2040 2045 2050

Mt

GH

Gs

BL assumption set

TEL1 TEL2 TEL3 TEL4

2000

2200

2400

2600

2800

3000

3200

3400

BL

BL

-N

BL

-N+

D

CP

EU

Alo

w-F

hig

h

CP

-N

CP

-N+

D

EU

Alo

w-F

ave

r

45

0p

pm

Mt

GH

Gs

Cumulative GHG emission

TEL1 TEL2 TEL3 TEL4

Undiscounted costs of the whole energy system (including traffic and other) in TEL1 under BL

assumption set (billion €2012)

0

10

20

30

40

50

60

2015 2020 2025 2030 2035 2040 2045 2050

bill

ion

€ EUA

Var

FOM

Fuel

Investment

Undiscounted costs difference of TEL2 assumption sets compared with scenario TEL1 BL

-2

-1

0

1

2

3

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

20

15

20

25

20

35

20

45

BL EUAlow-Faver

BL-N BL-N+D 450ppm CP EUAlow-Fhigh

CP-N CP-N+D

bill

ion

Investment Fuel FOM Var EUA Total

Externalities from district heat and power generation in selected years and cumulative

0

100

200

300

400

500

600

700

800

900

1000

BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

2020 2030 2040 2050

mil. €

0

5000

10000

15000

20000

25000

30000

35000

BL

BL

-NB

L-N

+D

CP

EU

Alo

w-F

hig

hC

P-N

CP

-N+

DE

UA

low

-Fa

ve

r4

50

pp

m

2015-2050

mil. €

TEL1

TEL2

TEL3

TEL4

Conclusions

• ‘breaking’ of the territorial ecological limits does not have significant affect of Czech energy system under most of assumption sets

• Fuel and EUA prices have higher impacts on Czech energy systém than availability of bronw coal

• Approximately 3 mil. t of brown coal would need to be

imported in case of not ‘breaking’ of the territorial ecological limits

• RES are at least competetive with nuclear sources at EUA price at 40€

• Sensitivity analysis shows fuel switch btw Hard coal and Natural gas

Thank you for your attention and comments!

Acknowledgement

The research has been supported by Technology Agency of the Czech Republic grant

number TD03000319.