1Your reference

Presentation to International Workshop on Energy Statistics

Energy Accounts

Ester KochNational Accounts

2─5 December 2008, Aguascalientes, Mexico

The Environmental Economic Accounts unit is part of National Accounts. Four people do water, minerals, energy, fisheries and land accounts.

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Supply and Use Tables

The physical flows are captured in the flow accounts structure, and the supply and use tables format is used.

Energy Accounts

SEEA 2003 and SEEA-E

The international methodology as set out in the system of Integrated Environmental and Economic Accounting 2003 is followed with regard to the definition of natural resource accounting. Recently Statistics South Africa are using the SEEA for Energy as guideline as well.

SIC

The energy accounts uses the Standard Industrial Classification of all Economic Activities (SIC) for economic activities as per the System of National Accounts (SNA).

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Physical flow accounts

In the development of the physical flow accounts, in the format of the 1993 System of National Accounts, the Department of Minerals and Energy’s Energy Balance is used. The physical units are converted to Terajoules to give total energy use and total energy supply.

Energy Accounts

Four types of physical flows are captured:

Natural resource extraction

Coal, crude oil, and gas.

Ecosystem inputs

i.e. oxygen combustion.

Products

Energy fuels such as petrol and diesel.

Residuals

Generated by the use of fossil fuels.

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Supply Table

1 Crude oil2 Coal and Lignite3 Petroleum products4 Gas to users5 Electricity6 Nuclear power7 Hydropower8 Renewables and waste

Total energy supply

Units of measurement Terajoules (TJ)

a. Domestic production

b. Imports

c. Total supply (a+b)

Eight columns:

Changes were made to the SEEA framework.

Excluded: Natural gas, steam and hot water, wood, and straw and waste

Included: Nuclear power, hydropower, and renewables and waste.

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Use Table

1 Crude oil2 Coal and Lignite3 Petroleum products4 Gas to users5 Electricity6 Nuclear power7 Hydropower8 Renewables and waste

Total energy use

Units of measurement

a. Intermediate consumption by industries

b. Inventory changesc. Total private

consumptiond. Exportse. Losses in distribution

c. Total use (a+b+c+d+e)

Intermediate consumption by industries includes:

• Agriculture and fishing• Mining and quarrying• Manufacturing• Electricity, gas and steam production• Construction• Transport, storage and communication• Commercial sector (wholesale and retail traders,

financial intermediates and public services).

No further breakdown is done in these categories.

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Energy resources:

Energy resources

Coal = main energy supply source and provides 75% of primary energy needs (South Africa 6th largest holder of coal reserves)

The remaining sources of supply are:

• Oil

• Renewable resources (wind, solar, biomass and wave power)

• Nuclear power

• Hydropower

• Gas

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Classification of energy sectors:

Classifications

Industrial – uses largest amount of energy and is divided in eight sub sectors:

• Chemicals and petrochemicals • Food and tobacco • Iron and steel • Mining • Non-ferrous metals • Non-metallic minerals • Pulp and paper

• Other

Residential – are classified into urban and rural:• Urban – use modern fuels, i.e. electricity for cooking, water heating, space heating,

and lighting.

• Rural – mainly traditional fuels, i.e. wood, dung, and bagasse. Transitional fuels include coal, paraffin and liquid petroleum gas (LPG).

Transport – together with residential 2nd and 3rd largest users of energy:

CommercialAgriculture

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0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

Industry(includesmining)

Transport Residential Commerce Agriculture Non-specific(other)

Non-energyuse

2003 2004

Final sectoral consumption of energy in Terajoules (TJ)

Sectoral energy consumption

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Standard Industrial Classification of all Economic Activities

SIC Codes

Major Division 4 Electricity, gas & water supply

Division 41 Electricity, gas, steam & hot water supply

Major Group 411 Production, collection & distribution of electricity

Group 4111 Production, collection & distribution of electricity

Sub Group 41111 Generation

41112 Distribution of purchased electric energy only

41113 Generation for own use

Classifications

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Data collection

In order to compile the accounts, data is obtained from Statistics South Africa in the form of a survey, with 22 power stations complying monthly.

Questions:

1. Electricity generated in kilowatt-hours (kWh).

2. Electricity consumed in power station(s) and energy storage systems in kWh.

3. Net quantity of electricity generated and sent out from power station(s).

4. Purchases outside the Republic of South Africa, e.g. Mozambique (specifying supplier).

5. Consumed in synchronous condenser (CSO), Department of Water Affairs and Forestry (DWAF) and Assets” (Applicable to the Electricity Supply Commission [Eskom]).

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Data sources

Department of Minerals & Energy (DME)

Wind, solar, natural gas liquid, natural gas, and coal (except imports).

Oil companies Electricity used in petrochemical industry and by oil refineries.

South African Coal and Oil (Sasol)

Petroleum products from non-crude sources and gas works.

Electricity Supply Commission (Eskom)

Electricity production and consumption (excluding electricity produced by municipalities)

National Energy Regulator of South Africa (NERSA)

Electricity exports, imports and own use, pumped storage, distribution losses, output from public plants and auto-producing plants, electricity production and consumption

South African Revenue Services (SARS)

Imports and exports of oil and coal.

Mittal Steel Imports of coking coal, production and consumption of blast furnace gas from iron and steel.

South African Petroleum Industry Association (SAPIA)

Oil consumption or sales data by sector.

The Department of Minerals and Energy uses the following sources of data to compile the Energy Balances:

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In order for the Energy Balance and Energy Account to be useful as a reliable information source, quality checks need to be done and the integrity of data need to be verified. This is currently done manually.

Data quality assurance & dissemination

Statistics South Africa is also entering into a legal framework with Department of Environmental Affairs and Tourism for future work on environmental statistics, including the development of the Emissions Account.

The Energy Account is currently only published as a discussion document, pending the formalizing of the institutional arrangements between the Department of Minerals and Energy and Statistics South Africa.

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The main energy resources in the South African economy are coal, oil, gas, nuclear power, hydropower and renewable sources such as wind, solar energy, bio-mass and wave power.

Uses of energy accounts / statistics

The significance of the energy accounts are that they are of considerable interest in their own right, especially for countries heavily involved in oil mining and processing. Also, every economy in the world depends on the availability of oil and other energy sources. The use of energy is critical to the economy, because almost all economic activities are connected either directly or indirectly to the consumption of energy.

The environmental accounts, specifically in the case of energy accounts, are crucial in a sense that they reflect how significant our environment is in the economy. In South Africa, energy is sourced mainly from coal. The supply and use (in physical units) of energy should be reflected in a way that is understandable from its raw production to the residuals. Energy accounts provide information about the levels of direct energy consumption of industries regarding their production processes and private households. These accounts can also provide information on changes in the energy requirements of particular industries in relation to their output. This shows the macro level impacts of new technologies, and eco-efficiency measures and behavioural changes. They are also an indispensable prerequisite for reliable estimates of air emissions related to energy consumption. The accounts are currently not official, there are some institutional arrangements that need to be formalised with partners in the energy sector to achieve this.

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Energy statistics and Energy Accounts could provide useful information in planning and scenario planning. Questions such as these could be answered:

Uses of energy accounts / statistics

• What are the levels of energy consumption in South Africa?

• What are the levels of energy input (both direct and indirect) into the various categories of final demand (private household consumption, exports, etc.)?

• What is the energy intensity of particular industries taking into account both direct and indirect energy inputs?

• For future predictions and scenarios, what are the changes expected in the energy requirements of particular industries in relation to their output?

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In mid-January 2008, nationwide power outages occurred and lasted approximately four weeks. The economic costs of the outages are estimated to range in the hundreds of millions with approximately half representing mining losses. Although the cost of electricity in South Africa is among the worlds lowest, the country's strong economic growth, rapid industrialization and a mass electrification program has led to demand for power outstripping supply .

Uses of energy accounts / statistics

In January 2008, the DME and Eskom released a new policy document: National response to South Africa's electricity shortage. The plan includes work on the country's electricity distribution structure and the fast-tracking of electricity projects by independent power producers. It also involves electricity co-generation projects between Eskom and private industry.

There are significant projects and initiatives ongoing to expand South Africa’s electricity infrastructure, reducing demand by pricing electricity correctly, as well as promoting energy efficiency and deterring energy inefficiency.

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Uses of energy accounts / statistics

Thank you for the

opportunity to present!