Energy Balance

Outlines

• Backgrounds
• Objectives, Focus and Desired Outcomes
• The Concept
• References
• Constructing The Energy Balance

2
Backgrounds
• To comprehend the phenomenon of Indonesia energy supply and demand, first of all
we have to construct the map (“the energy balance’).
• Government of Indonesia (“GOI”) never releases a comprehensive energy balance.
• If any, GOI only provides sectoral commodity balance (e.g. the Gas Balance 2018-2027 released
by Kementerian ESDM)
• Reliable and timely monitoring of the supply and use of energy becomes
indispensable for sound decision-making.
• Such monitoring is possible only if high-quality energy statistics are systematically compiled and
effectively disseminated
• There are available internationally agreed standards and other necessary guidance to
provide the national compilers covering relevant concepts and definitions,
classifications, data sources, data compilation methods, institutional arrangements,
data quality assurance, metadata and dissemination policies in terms of energy
balance.

3
Objectives, Focus and Desired Outcomes
Objectives: Focus:
• Constructing the Indonesia Energy Balance • Understanding the concept, standards, and guidance
• Data collecting, compilation, verification
• Constructing commodity flow map
• Constructing commodity balance
• Constructing energy balance

Out of Scope:
• Proposing new standards on
• Providing policy recommendations
• Providing opportunity/project list

Desired Outcomes:
• Comprehend the phenomenon of Indonesia energy supply and demand for example compute the total energy use, assess relative
contribution of different sources in energy mix / different sectors in energy demand, compute efficiencies of various transformation
processes (e.g. electricity generation)
• Provide reliable decision making supports for the decision maker regarding Indonesia energy security
4
The Concept

• The law of conservation of energy states that the total energy of an isolated
system remains constant; it is said to be conserved over time.
• This law means that energy can neither be created nor destroyed; rather, it can only be
transformed or transferred from one form to another
• An overall energy balance is an accounting framework for the compilation and
reconciliation of data on all energy products entering, exiting and used within
the national territory of a given country during a reference period.
• Such a balance must necessarily express all forms of energy in a common accounting
unit and show the relationship between the inputs to and the outputs from the energy
transformation processes.
• The energy balance should be as complete as possible so that all energy flows are, in
principle, accounted for.

5
References

• United Nation’s International Recommendations for Energy Statistics (IRES)

[link]
• International Energy Agency (IEA) [link]
• Eurostat Energy Balance [link]
• Joint Organizations Data Initiative (JODI) Oil Manual 2nd Edition [link]
• Joint Organizations Data Initiative (JODI) Gas Manual 1st Edition [link]

6
Constructing The Energy Balance
Construct commodity
balance
• for each energy carrier in
natural measurement units
of the energy carrier
• either physical unit (tonnes
and cubic meters) or energy
units (GWh for electricity and
TJ for heat)
To disseminate this information in a clear and comprehensive manner is another thing.
Convert the commodity
balance in various units into
a common energy unit
• by multiplying all the data by
the appropriate conversion
factor
• calorific values for energy
carriers in physical units
• unit conversion factor for
energy carriers measured in
energy units
To collect reliable statistics is one thing.
Reformat operation
• organizing the columns and
rows of the energy balance
to avoid double counting of
energy
• arranging the converted
commodity balances
alongside one another,
rearranging certain of the
rows and introducing a sign
convention in the
transformation sector
7
Terminology for Energy Commodities
• Primary Energy: either extracted or captured directly from
natural resources such as crude oil, hard coal, natural gas.
• Secondary Energy: all energy commodities which are not
primary but produced from primary commodities.
Secondary energy comes from the transformation of
primary or secondary energy, for example:
• the generation of electricity by burning fuel oil is
• petroleum products (secondary) from crude oil
(primary)
• coke-oven coke (secondary) from coking coal
(primary)
• charcoal (secondary) from fuelwood (primary)
• Both electricity and heat may be produced in a primary or
secondary form.
• Not all energy is an object of statistical observation.
Energy existing in nature and not having a direct impact
on society is not measured and monitored as part of
Source: IEA Energy Statistics Manual (2005) energy statistics; however, national practices in this
respect might differ. 8
General Commodity Flow
• The figure illustrates the general pattern of
the flow of a commodity from its first
appearance to its final disappearance (final
use) from the statistics.
• A commodity flow can be recorded at the
main points between its arrival and
disappearance
• The important criterion for a successful
statistical account of the flow:
• the commodity must not change its
characteristics during its lifetime
o The characteristics which matter are those which
affect its energy producing capacity
• the quantities must be expressed in identical
units for each source of supply and type of use
Source: IEA Energy Statistics Manual (2005)

9
IEA Commodity Balance Format
Domestic Supply

Transfers
Source of
Between
Supply
Commodities
• not major flows and arise primarily
Production Other sources from the reclassification of

Domestic
commodities
• the “transfers” row may also be
used as a practical device to bring
Imports Exports different commodities into another

Supply single commodity grouping

International
Stock change
marine bunkers

10
IEA Commodity Balance Format
Total Demand
represent the losses of energy
commodities during their
distribution to the points of use

the quantities of
Distribution & • as raw materials for
energy commodities Other Losses the manufacture of
consumed within the non-fuel products
fuel and energy (feedstock use)
enterprises in the
sense that they
Energy Sector Non-Energy • for their physical
properties (e.g.
disappear from the
account rather than
Own Use Use lubricants and
bitumen)
appear as another • for their solvent
energy commodity properties

the quantities of the • industry

fuels used for the • transportation
manufacture of • other sectors
secondary fuel
products and the fuels
Transformation Total Final Energy
burned to generate
electricity and heat for
Input Demand Consumption
sale (e.g. electricity
generation, solid fuel &
gas manufacture,
petroleum refineries)
11
IEA Commodity Balance Format
Overall

Domestic Statistical Total

Supply Difference Demand

Unfortunately, it will not be always possible to correct the data and, in this case, the statistical difference should not be
changed but left to illustrate the size of the problem
12
 Example:
Commodity Balance

Domestic Supply
–
(Transformation + Energy Sector Own Use + Distribution Loss)
+
(Statistical Difference + Transfers)
=
Final Consumption

Source: IEA Energy Statistics Manual (2005) 13

Example: Energy Balance
Common energy unit Column:
Energy Commodities

Row:
The Flow

Source: IEA Energy Statistics Manual (2005)

14
Example: Sankey Diagram

Source: Energy Balance of European Countries in 2017 - Eurostat (2019)

15
End of Presentation
Terima Kasih

16
Back-Up Slides

17
General Commodity Flow
Another Example

• The first appearance of an energy product in the

territory of reference is either through its
production or import.
• Once produced and/or transformed, energy
products can be: (a) exported to other territories;
(b) stored for later use (entering into stock); (c) used
for refueling of ships and airplanes engaged in
international voyages (international bunkering); (d)
used by the energy industries themselves; and/or
(e) delivered for final consumption.
• The final consumption of energy products consists
of (a) final energy consumption, i.e. deliveries of
energy products to the users located in the territory
of reference for their energy needs, such as for heat
raising, transportation and electricity, and (b) non-
energy use, i.e. deliveries of energy products for use
as chemical feedstocks or as raw materials.
• Energy flows are generated by the activities of
Source: UN IRES (2018)
various economic units.
18
Oil Industry Flow

Source: JODI Oil Manual 2nd Edition

19
Oil Industry Flow

Source: JODI Oil Manual 2nd Edition

20
Oil Refinery Process

Source: JODI Oil Manual 2nd Edition

21