Primary Energy Supply

Primary Energy Supply Sector

Purpose and Perspective

The purpose of the Energy Supply sector is to represent the primary energy supply of gas, oil, coal, biomass, and electricity, based on the International Energy Agency’s Energy Balances [1]. Primary energy supply is calculated based on final energy consumption and electricity generation, i.e. through a demand-driven approach. Part of primary energy production is lost as a result of transportation and transformation, while the remaining part contributes to primary energy supply. Primary energy net import is calculated as the difference between primary energy supply and primary energy production.

Model Structure and Major Assumptions

  • Biomass energy supply is based on crops production and forest products [2]

  • Energy transformation and transportation loss factors are based on IEA energy balances [3]

  • The difference between primary energy demand and primary energy production is filled by energy imports [4]

Exogenous Input Variables

  • Electricity generation efficiency by source [fuel] - Units: Dmnl

  • Other transformation losses factor [fuel] - Units: Dmnl

  • Transmission loss factor - Units: Dmnl

  • Primary energy stock variation – Units: Ktoe/year

Initialization Variables


Modeling Details

Although energy imports are explicitly calculated, the amount of such imports does not affect the total import in the Balance of payments sector, which is calculated as a residual of the GDP equation. Such a limiting assumption is typically relaxed when the analysis of trade components is the focus of the study and data on imports by type of good/service is available.

Footnotes and References

[1] IEA (2015). World Energy Balances, 2015 Revised Edition. International Energy Agency and OECD.

[2] Hoogwijk, M., Faaij, A., van den Broek, R., Berndes, G., Gielen, D., & Turkenburg, W. (2003). Exploration of the ranges of the global potential of biomass for energy. Biomass and Bioenergy, 25: 119 – 133

[3] IEA (2015). World Energy Balances, 2015 Revised Edition. International Energy Agency and OECD.

[4] IEA (2014). World Energy Model documentation, 2014 version. International Energy Agency and OECD.