long-term analysis of global co 2 emission reduction by efficient technologies

20
Long-term Analysis of Long-term Analysis of Global CO Global CO 2 2 Emission Emission Reduction by Efficient Reduction by Efficient Technologies Technologies Yutaka NAGATA (CRIEPI) Yutaka NAGATA (CRIEPI) Katsura FUKUDA (MRI, Inc.) Katsura FUKUDA (MRI, Inc.) Yuko MORI (JKL, Inc.) Yuko MORI (JKL, Inc.) International Energy Workshop International Energy Workshop July 6, 2005 July 6, 2005 Kyoto Kyoto

Upload: cole-lynn

Post on 03-Jan-2016

29 views

Category:

Documents


0 download

DESCRIPTION

Long-term Analysis of Global CO 2 Emission Reduction by Efficient Technologies. Yutaka NAGATA (CRIEPI) Katsura FUKUDA (MRI, Inc.) Yuko MORI (JKL, Inc.). International Energy Workshop July 6, 2005 Kyoto. Contents. Introduction Model Structure Case settings and presuppositions Results - PowerPoint PPT Presentation

TRANSCRIPT

Page 1: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

Long-term Analysis of Global Long-term Analysis of Global COCO22 Emission Reduction by Emission Reduction by

Efficient TechnologiesEfficient Technologies

Long-term Analysis of Global Long-term Analysis of Global COCO22 Emission Reduction by Emission Reduction by

Efficient TechnologiesEfficient Technologies

Yutaka NAGATA (CRIEPI)Yutaka NAGATA (CRIEPI)Katsura FUKUDA (MRI, Inc.)Katsura FUKUDA (MRI, Inc.)

Yuko MORI (JKL, Inc.)Yuko MORI (JKL, Inc.)

Yutaka NAGATA (CRIEPI)Yutaka NAGATA (CRIEPI)Katsura FUKUDA (MRI, Inc.)Katsura FUKUDA (MRI, Inc.)

Yuko MORI (JKL, Inc.)Yuko MORI (JKL, Inc.)

International Energy WorkshopInternational Energy WorkshopJuly 6, 2005July 6, 2005

KyotoKyoto

International Energy WorkshopInternational Energy WorkshopJuly 6, 2005July 6, 2005

KyotoKyoto

Page 2: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 2

ContentsContentsContentsContents

IntroductionIntroduction Model StructureModel Structure Case settings and presuppositionsCase settings and presuppositions ResultsResults

COCO22 emission emission Technological change caused by COTechnological change caused by CO22

constraintconstraint Emission trading costEmission trading cost

ConclusionsConclusions

IntroductionIntroduction Model StructureModel Structure Case settings and presuppositionsCase settings and presuppositions ResultsResults

COCO22 emission emission Technological change caused by COTechnological change caused by CO22

constraintconstraint Emission trading costEmission trading cost

ConclusionsConclusions

No time !No time !

Page 3: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 3

IntroductionIntroductionIntroductionIntroduction

Effectuation of the Kyoto ProtocolEffectuation of the Kyoto Protocol

Reducing COReducing CO22 emission by efficient emission by efficient technologies is the keytechnologies is the key

Combination with the flexible Combination with the flexible mechanisms (emission permit trading, JI, mechanisms (emission permit trading, JI, and CDM) is also importantand CDM) is also important

This study analyzed the effect of efficient This study analyzed the effect of efficient technologies quantitativelytechnologies quantitatively

Effectuation of the Kyoto ProtocolEffectuation of the Kyoto Protocol

Reducing COReducing CO22 emission by efficient emission by efficient technologies is the keytechnologies is the key

Combination with the flexible Combination with the flexible mechanisms (emission permit trading, JI, mechanisms (emission permit trading, JI, and CDM) is also importantand CDM) is also important

This study analyzed the effect of efficient This study analyzed the effect of efficient technologies quantitativelytechnologies quantitatively

Page 4: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 4

Final energy demandFinal energy demand(26 regions, 9 kinds)(26 regions, 9 kinds)Final energy demandFinal energy demand(26 regions, 9 kinds)(26 regions, 9 kinds)

Model structureModel structureModel structureModel structure

Transportation demandTransportation demandTransportation demandTransportation demand

Production cost curvesProduction cost curvesof resourcesof resources

Production cost curvesProduction cost curvesof resourcesof resources

Technological and costTechnological and costconditions of technologyconditions of technologyTechnological and costTechnological and costconditions of technologyconditions of technology

Primary energy demandPrimary energy demand(26 regions, 10 kinds)(26 regions, 10 kinds)

Primary energy demandPrimary energy demand(26 regions, 10 kinds)(26 regions, 10 kinds)

Energy pricesEnergy prices(26 regions, 10 kinds)(26 regions, 10 kinds)

Energy pricesEnergy prices(26 regions, 10 kinds)(26 regions, 10 kinds)

COCO22 emissions andemissions andtraded permitstraded permits

COCO22 emissions andemissions andtraded permitstraded permitsCost of COCost of CO22 capture and capture and

sequestration (optional)sequestration (optional)Cost of COCost of CO22 capture and capture andsequestration (optional)sequestration (optional)

Exogenous conditionsExogenous conditionsExogenous conditionsExogenous conditions

Constraint for newConstraint for newconstruction and COconstruction and CO22

Constraint for newConstraint for newconstruction and COconstruction and CO22

Installed capacity ofInstalled capacity ofenergy technologiesenergy technologiesand their operationand their operation

Installed capacity ofInstalled capacity ofenergy technologiesenergy technologiesand their operationand their operation

Discounted total energyDiscounted total energysupply cost until 2030supply cost until 2030

Discounted total energyDiscounted total energysupply cost until 2030supply cost until 2030

METEOMETEOMETEOMETEO

Major OutputMajor OutputMajor OutputMajor Output

Page 5: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 5

Characteristics of the METEO Characteristics of the METEO modelmodelCharacteristics of the METEO Characteristics of the METEO modelmodel Dynamic optimizationDynamic optimization Cost function of resource reservesCost function of resource reserves Price-induced energy conservationPrice-induced energy conservation Detailed treatment for load curve of electricityDetailed treatment for load curve of electricity Treats Asian countries in detailTreats Asian countries in detail 3 ways of technological change3 ways of technological change

(1)(1) mixture of power generationmixture of power generation(2)(2) fuel conversionfuel conversion(3)(3) alternative fuel vehiclesalternative fuel vehicles

Dynamic optimizationDynamic optimization Cost function of resource reservesCost function of resource reserves Price-induced energy conservationPrice-induced energy conservation Detailed treatment for load curve of electricityDetailed treatment for load curve of electricity Treats Asian countries in detailTreats Asian countries in detail 3 ways of technological change3 ways of technological change

(1)(1) mixture of power generationmixture of power generation(2)(2) fuel conversionfuel conversion(3)(3) alternative fuel vehiclesalternative fuel vehicles

Page 6: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 6

Assumptions of production cost Assumptions of production cost curve for fossil fuelscurve for fossil fuelsAssumptions of production cost Assumptions of production cost curve for fossil fuelscurve for fossil fuels

0

0.5

1

1.5

2

2.5

3

0 0.2 0.4 0.6 0.8 1

Pro

duct

ion

Cos

t (1

=A

vera

ge P

rice)

Production (1=Proved Reserves)

Grade 1Grade 1Grade 2Grade 2

Grade 3Grade 3Grade 4Grade 4

Grade 5Grade 5Grade 6Grade 6

Grade 7Grade 7Grade 8Grade 8

Grade 9Grade 9

Grade 10Grade 10

Page 7: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 7

Regional divisionRegional divisionRegional divisionRegional division

10 Thailand

4 Japan

1 China 3 Taiwan2 Hong Kong

5 Korea

6 Singapore 15 Australia

16 New Zealand

26 Latin America

25 Mexico

24 USA

23 Canada

22 Africa

21 Middle East

19 Russia17 OECD Europe

18 Non-OECDEurope

20 Former Soviet Republics

7 Malaysia

8 Indonesia

9 Philippines

11 Brunei

12 Vietnam13 India

14 Other Asia

Page 8: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 8

Fuel conversion flowFuel conversion flowFuel conversion flowFuel conversion flow

BiomassBiomass

NuclearNuclear

HydroHydro

GeothermalGeothermal

SolarSolar

WindWind

Coking CoalCoking Coal

CoalCoal

Natural GasNatural Gas

Crude OilCrude Oil

Iron & SteelIron & Steel

Coal Coal LiquefactionLiquefaction

Coal Coal GasificationGasification

Oil RefineryOil Refinery

LPGLPGGasolineGasolineNaphthaNaphthaGas OilGas OilFuel OilFuel Oil

Gas Gas LiquefactionLiquefaction

Vaporization Vaporization of LNGof LNG Gas Gas

DemandDemand

Coal Coal DemandDemand

LPG LPG DemandDemand

Naphtha Naphtha DemandDemand

Power GenerationPower Generation

Coal PowerCoal PowerOil PowerOil PowerGas PowerGas PowerBiomass PowerBiomass PowerNuclear powerNuclear powerHydro PowerHydro PowerGeothermal PowerGeothermal PowerSolar PowerSolar PowerWind PowerWind Power

Gasoline Gasoline DemandDemand

Diesel Oil Diesel Oil DemandDemand

Electricity Electricity DemandDemand

Fuel Oil Fuel Oil DemandDemand

GTLGTL

DMEDME

Page 9: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 9

Case settingsCase settingsCase settingsCase settings

COCO22 constraint constraint

EmissionEmissiontrading regiontrading region

NoNo Kyoto foreverKyoto forever

Reduced by Reduced by 4% in every 4% in every

5 years since 5 years since 20102010

NoNo BAUBAU SR(A)SR(A) SR(B)SR(B)

Japan and ChinaJapan and China JC(A)JC(A) JC(B)JC(B)

Annex-I (ratified)Annex-I (ratified) Annex(A)Annex(A) Annex(B)Annex(B)

World-wideWorld-wide World(A)World(A) World(B)World(B)

Countries which have no obligation and not ratified Annex-I are Countries which have no obligation and not ratified Annex-I are assumed to have same amounts of emission credits in the BAU case.assumed to have same amounts of emission credits in the BAU case.

Page 10: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 10

0

2

4

6

8

10

12in

200

0

BA

U

SR

(A)

JC(A

)

Ann

ex(A

)

Wor

ld(A

)

SR

(B)

JC(B

)

Ann

ex(B

)

Wor

ld(B

)

US

Other World

Other Asia

China

Japan

New Zealand

Russia

Other Europe

OECD Europe

Canada

Regional CORegional CO22 emission emission(in 2030)(in 2030)Regional CORegional CO22 emission emission(in 2030)(in 2030)

Gt-

C

with

CO

2 c

onst

rain

tN

o co

nstr

aint

Page 11: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 11

Production of crude oilProduction of crude oil(BAU case)(BAU case)Production of crude oilProduction of crude oil(BAU case)(BAU case)

0

5000

10000

15000

20000

25000

2000 2005 2010 2015 2020 2025 2030

MT

OE

/yea

r

Grade 1Grade 1

Grade 2Grade 2

Grade 3Grade 3

Grade 4Grade 4

Grade 5Grade 5

Grade 6Grade 6

Grade 7Grade 7

year

Page 12: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 12

with

CO

2 c

onst

rain

t

Differences in CODifferences in CO22 emission emission(in 2030)(in 2030)Differences in CODifferences in CO22 emission emission(in 2030)(in 2030)

-1200

-800

-400

0

400

800

1200JC

-SR

(A)

Ann

ex-S

R(A

)

Wor

ld-S

R(A

)

JC-S

R(B

)

Ann

ex-S

R(B

)

Wor

ld-S

R(B

)

US

Other World

Other Asia

China

Japan

New Zealand

Russia

Other Europe

OECD Europe

Canada

Mt-

C

Purchase credit

Sell credit

No

cons

trai

nt

Page 13: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 13

Capacity of power plantsCapacity of power plants (World, in 2030) (World, in 2030)Capacity of power plantsCapacity of power plants (World, in 2030) (World, in 2030)

0

1000

2000

3000

4000

5000

6000

7000

in 2

000

BA

U

SR

(A)

JC(A

)

Ann

ex(A

)

Wor

ld(A

)

SR

(B)

JC(B

)

Ann

ex(B

)

Wor

ld(B

)

Other renewables

Hydro

Nuclear

Biomass

Advanced gas

Conv. gas

Oil

IGCC, IGFC

USC

PCF

GW

Page 14: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 14

Electricity generationElectricity generation (Japan, in 2030) (Japan, in 2030)Electricity generationElectricity generation (Japan, in 2030) (Japan, in 2030)

0

200

400

600

800

1000

1200

1400

in 2

000

BA

U

SR

(A)

JC(A

)

Ann

ex(A

)

Wor

ld(A

)

SR

(B)

JC(B

)

Ann

ex(B

)

Wor

ld(B

)

Steel byproduct

Other renewables

Hydro

Nuclear

Biomass

Advanced gas

Conv. gas

Oil

IGCC, IGFC

USC

PCF

GW

h

Page 15: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 15

Electricity generationElectricity generation (China, in 2030) (China, in 2030)Electricity generationElectricity generation (China, in 2030) (China, in 2030)

0

500

1000

1500

2000

2500

3000

3500

in 2

000

BA

U

SR

(A)

JC(A

)

Ann

ex(A

)

Wor

ld(A

)

SR

(B)

JC(B

)

Ann

ex(B

)

Wor

ld(B

)

Steel byproduct

Other renewables

Hydro

Nuclear

Biomass

Advanced gas

Conv. gas

Oil

IGCC, IGFC

USC

PCF

GW

h

Page 16: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 16

0

1000

2000

3000

4000

5000

6000

7000B

AU

SR

(A)

JC(A

)

Ann

ex(A

)

Wor

ld(A

)

SR

(B)

JC(B

)

Ann

ex(B

)

Wor

ld(B

)

DME

GTL

LNG Vaporization

NG Liquefaction

Oil Refinery

Energy consumption by fossil Energy consumption by fossil fuel conversion tech. fuel conversion tech. (in 2030)(in 2030)Energy consumption by fossil Energy consumption by fossil fuel conversion tech. fuel conversion tech. (in 2030)(in 2030)

MT

OE

GTL and DME will not GTL and DME will not be installed at the be installed at the regions where COregions where CO22 constraints will be constraints will be applied since COapplied since CO22 is is emitted during the emitted during the process.process.

Page 17: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 17

0

500

1000

1500

2000

2500

3000B

AU

SR

(A)

JC(A

)

Ann

ex(A

)

Wor

ld(A

)

SR

(B)

JC(B

)

Ann

ex(B

)

Wor

ld(B

)

DME

GTL

Diesel

Hybrid*

Gasoline

Energy consumption by Energy consumption by vehicles vehicles (in 2030)(in 2030)Energy consumption by Energy consumption by vehicles vehicles (in 2030)(in 2030)

MT

OE

* The share of hybrid * The share of hybrid vehicles in number is vehicles in number is twice because the twice because the efficiency of them is efficiency of them is twice of gasoline twice of gasoline vehiclesvehicles

Page 18: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 18

Cost of emission tradingCost of emission tradingCost of emission tradingCost of emission trading

-50

0

50

100

150

200

2010 2015 2020 2025 2030

JC(A)Annex(A)World(A)JC(B)Annex(B)World(B)

Cre

dit

Val

ue (

$/to

n-C

O2)

year

Emissiontrading cost

Differences in total cost between each case and the SR cases

Total amount of excess (insufficient) emissions by region=

Current Current price price range of range of EU EU allowanceallowance

Page 19: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 19

ConclusionConclusionConclusionConclusion

Global COGlobal CO22 emission will be doubled in 2030 emission will be doubled in 2030 from the 1990 level in the BAU case. from the 1990 level in the BAU case.

Introduction of clean-coal technologies is Introduction of clean-coal technologies is important in Japan and other countries.important in Japan and other countries.

Advanced fuel conversion technologies and Advanced fuel conversion technologies and alternative fuel vehicles will be introduced alternative fuel vehicles will be introduced irrelevant to COirrelevant to CO22 constraints. constraints.

The theoretical cost of emission trading in 2030 The theoretical cost of emission trading in 2030 will be $36-$145 per ton-COwill be $36-$145 per ton-CO22..

Global COGlobal CO22 emission will be doubled in 2030 emission will be doubled in 2030 from the 1990 level in the BAU case. from the 1990 level in the BAU case.

Introduction of clean-coal technologies is Introduction of clean-coal technologies is important in Japan and other countries.important in Japan and other countries.

Advanced fuel conversion technologies and Advanced fuel conversion technologies and alternative fuel vehicles will be introduced alternative fuel vehicles will be introduced irrelevant to COirrelevant to CO22 constraints. constraints.

The theoretical cost of emission trading in 2030 The theoretical cost of emission trading in 2030 will be $36-$145 per ton-COwill be $36-$145 per ton-CO22..

Page 20: Long-term Analysis of Global CO 2  Emission Reduction by Efficient Technologies

July 6, 2005 International Energy Workshop, Kyoto 20

Scope of the METEO modelScope of the METEO modelScope of the METEO modelScope of the METEO modelRegionRegion Worldwide, multi-regional (26 regions)Worldwide, multi-regional (26 regions)

Time rangeTime range 2000-2030, 7 points (every 5 years)2000-2030, 7 points (every 5 years)

Primary energy typePrimary energy type 10 kinds (2 coal, oil, gas, biomass, nuclear, geothermal, 10 kinds (2 coal, oil, gas, biomass, nuclear, geothermal, hydro, PV, windhydro, PV, wind

Final energy typeFinal energy type 9 kinds (2 coal, gasoline, diesel, naphtha, LPG, other oil, gas, 9 kinds (2 coal, gasoline, diesel, naphtha, LPG, other oil, gas, electricityelectricity

Fuel conversion Fuel conversion technologiestechnologies

oil refinery, GTL, DME, natural gas liquefying, coal liquefying, oil refinery, GTL, DME, natural gas liquefying, coal liquefying, coal gasification, steel making (by-product gases)coal gasification, steel making (by-product gases)

Efficient vehicle tech.Efficient vehicle tech. hybrid car, alternative fuel vehicles (CNG, DME)hybrid car, alternative fuel vehicles (CNG, DME)

Power generation Power generation technologiestechnologies

PCF, USC-PCF,Conventional gas CC, Advanced CC (ACC), PCF, USC-PCF,Conventional gas CC, Advanced CC (ACC), MACC, IGCC, IGFCMACC, IGCC, IGFC

Energy Energy transportationtransportation

considered (depends on mode and length)considered (depends on mode and length)

Energy prices / Energy prices / resource reservesresource reserves

considered (cost function in ten steps of supply curve)considered (cost function in ten steps of supply curve)

Energy conservationEnergy conservation considered (reverse function of energy demand)considered (reverse function of energy demand)