ECON 366: Energy Economics

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.title[
# ECON 366: Energy Economics
]
.subtitle[
## Topic 2.1: Energy Units, Conversion, and Visualization
]
.author[
### Andrew Leach, Professor of Economics and Law
]
.date[
### <a href="mailto:aleach@ualberta.ca"><i class="fa fa-envelope fa-fw"></i> aleach@ualberta.ca</a> <br> <a href="https://github.com/leachandrew"><i class="fa fa-github fa-fw"></i> leachandrew</a><br><a href="https://twitter.com/andrew_leach"><i class="fa fa-twitter twitter"></i> <span class="citation">@andrew_leach</span></a><br>
]

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# Forms of energy

- Potential: Stored energy
- Kinetic: Energy of motion
- Chemical: Energy stored in the bonds of atoms and molecules
- Nuclear: Energy stored in the nucleus of an atom
- Gravitational: Energy stored in an object's height
- Radiant: Electromagnetic energy travels in transverse waves
- Thermal: Vibration and movement of atoms and molecules within substances
- Electrical: Delivered by charged particles called electrons, typically moving through a wire

---

# Energy Classification

---

#Energy Classification Definitions

*Primary energy* is the energy as it is available as resources: coal, uranium, oil, gas, etc.

*Secondary energy* is converted into a transportable form, e.g. electricity, gasoline and diesel, or heat.

*Final energy* is delivered secondary energy: gasoline at the fuel pump, electricity in your home.

*Useful energy* is the energy that goes towards the desired output as opposed to waste energy. For example, when you run in internal combustion gasoline engine, some energy is lost as heat.

> Based on this [post from Hannah Ritchie](https://ourworldindata.org/energy-definitions)
---

# Energy Classification
- Primary vs. Secondary vs. Final vs. Useful Energy
  - See [post from Hannah Ritchie](https://ourworldindata.org/energy-definitions) mentioned above
- Renewable and Non-Renewable Energy  
> [Renewable energy](https://www.nrcan.gc.ca/our-natural-resources/energy-sources-distribution/renewable-energy/about-renewable-energy/7295) is energy derived from natural processes that are replenished at a rate that is equal to or faster than the rate at which they are consumed, e.g. energy generated from solar, wind, geothermal, hydropower and ocean resources.  
- *Clean* vs *Dirty* Energy  
  - *Clean* energy is a broader category, e.g. may include nuclear, waste heat capture, etc.
- Commercial and Non-Commercial
- Conventional and Non-Conventional
  - *Conventional* tends to be a moving target

---

# Energy Losses

---

# Calculating Energy Shares

- Direct vs. Substitution Methods for calculating shares of primary energy
  - See [yet another post from Hannah Ritchie](https://ourworldindata.org/energy-substitution-method)
  
- *direct* calculations look at the energy supplied via, for example, oil and natural gas, but does not take account of the energy lost in conversion processes. 
- *substitution* method essentially omits the energy wasted in creating that eventual, useful energy that was consumed

---

# Energy Shares

---

# Energy Shares

---

# Energy Shares

<center>
<iframe src="https://ourworldindata.org/grapher/share-of-primary-energy-consumption-by-source" loading="lazy" style="width: 90%; height: 500px; border: 0px none;"></iframe>
</center>
&emsp;<site_link> [Source site link](https://ourworldindata.org/energy-substitution-method)<site_link>

---

# Energy Shares

<center>
<iframe src="https://ourworldindata.org/grapher/share-energy-source-sub" loading="lazy" style="width: 90%; height: 500px; border: 0px none;"></iframe>
</center>
&emsp;<site_link> [Source site link](https://ourworldindata.org/energy-substitution-method)<site_link>

---

# Calculating Energy Shares

From [Hannah Ritchie's post:](https://ourworldindata.org/energy-substitution-method)

- Low-carbon’s share in direct primary energy = % of total primary energy consumption (including all of the inefficiencies of fossil fuel production)

- Low carbon’s share in substituted primary energy = % of useful energy (once we subtract all of the wasted energy in the burning of fossil fuels)

---

# Renewable Energy Generation

<center>
<iframe src="https://ourworldindata.org/grapher/renewable-share-energy" loading="lazy" style="width: 90%; height: 500px; border: 0px none;"></iframe>
</center>
&emsp;<site_link> [Source site link](https://ourworldindata.org/grapher/annual-percentage-change-renewables)<site_link>

---

# Renewable Energy Generation is Growing Fast
<center>
<iframe src="https://ourworldindata.org/grapher/annual-percentage-change-renewables" loading="lazy" style="width: 90%; height: 500px; border: 0px none;"></iframe>
</center>
&emsp;<site_link>[Source site link](https://ourworldindata.org/grapher/annual-percentage-change-renewables)</site_link>

---

# Clean vs. Dirty Energy

This will be the first and (I hope) last pie chart we use in this class
---

# US Primary Energy

<img src="measuring_energy_files/figure-html/unnamed-chunk-7-1.png" style="display: block; margin: auto;" />
&emsp;<site_link>[Source site link](https://www.eia.gov/totalenergy/data/browser/?tbl=T01.03)</site_link>

---

# Canadian Primary Energy Production

---

# Measurement Classifications

.pull-left[
-   Volume or mass units: gallons, liters, barrels, cubic meters, tons, tonnes, cords
-   Energy value: Calories, Joules, Watts, British thermal unit (BTU), barrel or tonne of oil equivalent (boe or toe) 
-   Market value: $, €, £, etc.
]

.pull-right[
![:scale 55%](joule.jpg)
]
> "Wherever mechanical force is expended, an exact equivalent of heat is always obtained"  
> &nbsp;&nbsp; - James Prescott Joule, 1843

---

# Richard Feynman on units of energy
<hr.space-1>
<center>
<iframe width="700", height="500" src="https://www.youtube.com/embed/roX2NXDUTsM" title="Feynman on Energy Units" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" allowfullscreen></iframe>
</center>
---

# Units

- Newton (N) = `$kg$` `$\cdot$` `$\frac{m}{s^2}$`
- Joule (J) = 1 N `$\cdot$` m = `$kg\frac{m^2}{s^2}$` = Watt `$\cdot$` Second
  - J = Watt `$\cdot$` s.  
- What is a Watt?  
  - Hint: Watt=Work/time
- How many J's do average Albertans use annually?
  - 130,000,000,000 J
- Perhaps, we should choose a different unit?
  - 130,000,000,000 J  = 130 GJ
- What about for all Albertans?
  - Scale up to a petajoule, PJ, or `$10^{15}$` Joules
---

# Units

Where might you run into some of these units?

- check you phone/laptop charger (Apple 29W charger, for e.g.)

- check your breaker panel at home  - you'll see breakers in amps (15A, 20A, 30A, 40A and maybe 100A breakers)
  - Household circuits are 120 volts or 240 volts (think *pressure* of the electricity)
  - Amps multiplied by volts equals watts, so a 15A breaker at 120 volts (usual room outlets) have a capacity of 15*120=1,800W.

- check your hairdryer (1500W?)

---

# How much energy do appliances use?
<hr.space-1>
<table class="table">
<thead>
<tr class="success">
<th>Appliance</th>
<th>Wattage</th>
<th>Hours Per Month</th>
<th>Monthly Consumption (kWh)</th>
<th>
<p>$/Month ($0.1524/kWh)</p>
</th>
</tr>
</thead>
<tbody>
<tr>
<td>Block Heater</td>
<td>500</td>
<td>120-480</td>
<td>240</td>
<td>
<p>$36.58</p>
</td>
</tr>
<tr>
<td>Clothes Dryer</td>
<td>5000</td>
<td>6-28</td>
<td>140</td>
<td>
<p>$21.34</p>
</td>
</tr>
<tr>
<td>Clothes Washer</td>
<td>500</td>
<td>7-40</td>
<td>20</td>
<td>
<p>$3.05</p>
</td>
</tr>
<tr>
<td>Dishwasher</td>
<td>1300</td>
<td>8-40</td>
<td>52</td>
<td>
<p>$7.92</p>
</td>
</tr>
<tr>
<td>Hair Dryer</td>
<td>1000</td>
<td>1-10</td>
<td>10</td>
<td>
<p>$1.52</p>
</td>
</tr>
<tr>
<td>Kettle</td>
<td>1500</td>
<td>1-10</td>
<td>10</td>
<td>
<p>$1.52</p>
</td>
</tr>
<tr>
<td class="td-vat">Range - Oven</td>
<td class="td-vat">12,500</td>
<td class="td-vat">10-50</td>
<td class="td-vat">625</td>
<td class="td-vat">
<p>$95.25</p>
</td>
</tr>
<tr>
<td class="td-vat">Refrigerator</td>
<td class="td-vat">500</td>
<td class="td-vat">150-300</td>
<td class="td-vat">150</td>
<td class="td-vat">
<p>$22.86</p>
</td>
</tr>
</tbody>
</table>

---

# Units

Where might you run into some of these units?

- check you phone/laptop charger (Apple 29W charger, for e.g.)

- why are you likely to blow a breaker if you run the toaster and the kettle at the same time?

---

# Units in practice

.pull-left[![:scale 90%](nat_gas_bill.png)]

.pull-right[![:scale 85%](power_bill.png) ]

---

# Mechanical energy measurements: kWh
.pull-left[
- Typically, electricity is billed per kWh
- What is the relationship between kWh and Joules?
  - 1 kW = 1 kJ/s (a flow) 
  - 1 kWh = 1 `$\frac{kJ}{s}$` `$\times$` `$\frac{3600 s}{hour}$` = 3600kJ
- How many kWh's do average Albertans use annually? 
  - [Albertan households use 124.6 GJ of energy per year](https://www150.statcan.gc.ca/n1/daily-quotidien/220502/dq220502b-eng.htm)
  - 124,600 MJ `$\times$`  `$\frac{1 kWh}{3.6 MJ}$` `$\approx$` 34,600 kWh 
]

.pull-right[![:scale 85%](reddy_2.png)]

---

# Thermal energy: Btus and Calories
.pull-left[
- Calorie = energy needed to cool or heat one gram of water by one degree C. 
- British thermal unit (Btu): amount of energy needed to cool or heat one pound of water by one degree F. 
- Question: What does mBtu mean?   mmBtu?
- Various conversions: 
  - 1 Btu `$\approx$` 252.164401 cal
  - 1 Btu `$\approx$` 0.947817 kJ
]

.pull-right[
- Common usage - a 24,000 Btu air conditioner means what, exactly? 
![:scale 40%](ac_unit.png)

- Sized by how many Btu of heat it can remove in one hour
]

---

# Commercial measures: toe and tce
- toe (tonne of oil equivalent) is the amount of energy released by burning one tonne (metric ton) of crude oil
  - 1 toe `$\approx$` 7.25 barrel of oil equivalent 
  - 1 toe = 41.87 gigajoules   (GJ)
  - 1 toe = 39,683,205 Btu (39.7 mmBtu)
- Converting the other way:
  - One tonne of gasoline is 1.070 toe
  - One tonne of diesel oil is 1.035 toe
  - One tonne of Liquefied petroleum gas (propane) is 1.130 toe
- 1 ton of coal equivalent = 1 tce = 29.3076 GJ

---

# Conversion Factor Reference

&emsp;<site_link>[Source: IEA (2019), "World energy balances"](https://www-oecd-ilibrary-org.login.ezproxy.library.ualberta.ca/docserver/3a876031-en.pdf?expires=1673203120&id=id&accname=ocid177104&checksum=6D4C64670A8D1C5A32351B9F60DA89AC). 
</site_link>

---

# Energy Accounting
<img src="iea_flows.png" width="700px" style="display: block; margin: auto;" />
&emsp;<site_link>[International Recommendations for Energy Statistics (IRES)](https://unstats.un.org/unsd/energystats/methodology/documents/IRES-web.pdf). 
</site_link>
---

# Energy Balance
<img src="iea_balance.png" width="400px" style="display: block; margin: auto;" />

&emsp;<site_link>[International Recommendations for Energy Statistics (IRES)](https://unstats.un.org/unsd/energystats/methodology/documents/IRES-web.pdf). 
</site_link>
---

# You need to know the TPES formula here:
<img src="canada_tpes.png" width="750px" style="display: block; margin: auto;" />
<center>
<site_link>Production+imports-exports- net stock additions (i.e closing-opening) - net bunker additions (i.e. closing-opening)
</site_link>
</center>

&emsp;<site_link>[Source: IEA (2019), World energy balances](https://www-oecd-ilibrary-org.login.ezproxy.library.ualberta.ca/docserver/3a876031-en.pdf?expires=1673203120&id=id&accname=ocid177104&checksum=6D4C64670A8D1C5A32351B9F60DA89AC). 
</site_link>

---

# Accounting in Practice: Canadian natural gas

&emsp;<site_link>[Source: IEA (2023)](https://www.iea.org/data-and-statistics/data-product/world-energy-balances-highlights#highlights)</site_link>
---

# Energy Flow Visuals

&emsp;<site_link>[Source data: IEA (2022), Sankey diagrams, Canada](https://www.iea.org/sankey/#?c=Canada&s=Balance)</site_link>
---

# Energy Use by Sector and Source

<img src="eia_source.png" width="750px" style="display: block; margin: auto;" />
&emsp;<site_link>[EIA Energy Facts Explained](https://www.eia.gov/energyexplained/us-energy-facts/)</site_link>