Primary energy factors (PEF), often referred to as conversion factors, are required to calculate the total energy consumption including the total chain of energy generation based on the final energy consumption data. In this webinar, different primary energy definitions, accounting methods, and their applications with a focus on electricity and heat generation from renewable energy will be presented. In addition to renewable energy sources, primary energy factors for electricity from waste, nuclear, and imported electricity are also discussed as these can be calculated in different ways. Depending on the methodology used, it will be shown that the resulting PEFs for different energy sources vary significantly.

1. Primary Energy Demand
of Renewable Energy
Carriers – Part 1:
Methodology and
Examples
Alexander Stoffregen
Dr. Oliver Schuller

2. 28.05.2014
Agenda
2
Methodology and Examples – Part 1
• Introduction
• Primary energy – Definitions
• Primary energy – Accounting methods for electricity / steam
• Application of accounting methods in practice
• Conclusions
Policy Implications – Part 2
June 12, 2014, 15:00 by Andreas Hermelink, Ecofys

3. 28.05.2014
Introduction
3
• Are renewable energy sources included in the primary energy consumption?
• What is the impact of an increasing renewable share in electricity generation?
Primary energy consumption of the
EU and 2020 target (Mtoe)
Primary energy accounting – does it matter?
Source: EC 2011
0
500
1.000
1.500
2.000
2.500
3.000
3.500
4.000
4.500
2000 2010 2020 2030 2040 2050
Solar
Wind
Hydro
Biomass
Oil
Natural gas
Coal
Nuclear
EU net electricity generation by fuel
(TWh)

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Introduction
Efficiency of photovoltaic panels ~10-20%
• If 5-10 MJ of primary energy are accounted to
produce 1 MJ of electricity from solar power,
the primary energy consumption would go
up with an increasing share of solar power.
• If renewable energy sources are excluded in the
primary energy consumption statistics,
primary energy consumption might go down
without any efficiency measure.

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Primary energy – Definitions
Definition of primary energy
“The energy that is embodied in resources as they exist in nature: the
chemical energy embodied in fossil fuels or biomass, the potential
energy of a water reservoir, the electromagnetic energy of solar radiation
and the energy released in nuclear reactions” (Nakicenovic 1996)

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Primary energy – Definitions
Calculation of Primary Energy Factors (PEF) for
electricity supply from combustible energy sources:
,
reciprocal of thermal power plant efficiency
! ,
CF f = calorific value of a fuel
Input f, t = input of fuel per operation time
Output t = output of electricity or heat per operation time

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Primary energy – Definitions
Calculation of Primary Energy Factors (PEF) for
electricity supply from non-combustible energy sources:
electricity output
measured?

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Primary energy – Definitions
No. Option Type of primary
energy
1 PEF for electricity from non-combustible
renewables (e.g. hydro, solar, wind) = 0
n.a.
2 Different accounting methods are used to
determine the primary energy input/primary
energy equivalents
Accounting for total
primary energy
3 Only non-renewable primary energy is
considered, i.e. infrastructure for renewables (e.g.
hydropower station, solar panels etc.) and nuclear
fuel supply/use
Consideration of
non-renewable primary
energy only.
4 Combination of 2 & 3 but split up of primary
energy into renewable and non-renewable
Split into renewable and
non-renewable primary
energy
Options to account primary energy for electricity/heat
from non-combustible energy sources

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Primary energy – Definitions
Overview of options & methods to account for primary
energy
Option 2
• Direct equivalence
method
• Physical energy
content method
• Substitution
method
Option 1
• No accounting
method required
primary energy
always zero
Option 3
• No accounting
method required
renewable
primary energy
excluded, i.e. non-
renewable primary
energy only
Option 4
• Technical
conversion
efficiencies method
• Physical energy
content method (or
similar concepts)

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Primary energy - Accounting methods for
electricity / steam
Direct equivalent method
Definition:
Primary energy equivalence (or conversion efficiency) of 100% between
primary energy from non-combustible sources (renewables & nuclear)
and electricity/heat
Example:
Appliance:
e.g. energy statistics of the UN
1 MJ
primary energy
1MJ
electricity

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Primary energy - Accounting methods for
electricity / steam
Physical energy content method
Definition:
„Primary energy should be the first energy from downstream in the production
process for which multiple energy uses are practical“ (IEA 2004)
Examples (1):
Solar thermal (electricity or steam/thermal energy production)
generation
of heat
1 MJ electricity
1 MJ steam/thermal
energy
2 MJ
3 MJ

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Primary energy - Accounting methods for
electricity / steam
Physical energy content method
Examples (2):
For wind, hydro, and photovoltaic power, electricity is the first energy with
“multiple energy uses” 1 MJ primary energy = 1 MJ electricity
Appliance:
Energy statistics of IEA, Eurostat, OECD

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Primary energy - Accounting methods for
electricity / steam
Substitution method
Definition:
Use of technical conversion efficiencies of the fossil fuels that were substituted
by the electricity from renewable, non-combustible energies or that would be
required to replace the electricity (Grubler 2012)
Examples:
Average efficiency of fossil power plants (coal, natural gas, fuel oil) = 40%
2.5 MJ primary energy e.g. from wind / hydro = 1 MJ electricity
Appliance:
e.g. Energy statistics of U.S. Energy Information Administration (EIA)

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Primary energy - Accounting methods for
electricity / steam
Technical conversion efficiencies
Definition:
Technical conversion efficiency between energy source and generated
electricity or heat is used to calculate the primary energy input
Examples:
Conversion efficiency of hydro power ≈ 85% (electricity output/potential energy
of water) 1.2 MJ primary energy 1 MJ electricity
Appliance:
e.g. Often used in environmental assessments, such as life cycle
assessment (LCA) (usually not in energy statistics)

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Application of accounting methods in practice
Primary energy equivalents & conversion efficiencies
Energy source Direct
equivalent
method
Physical
energy content
method
Substitution
method1
Technical
conversion
efficiency2
Hydro 100% 100% 39.7% 85%
Wind 100% 100% 39.7% 40%
Solar - photovoltaic 100% 100% 39.7% 13.4%
Solar - thermal electric 100% 33% 39.7% 12.4%
Geothermal 100% 10% 39.7% 22.4%
Biomass (solid) 28.6%3
1 Substitution via average European fossil power plant, based on IEA data (reference year 2010)
2 Conversion efficiencies taken from PE INTERNATIONAL’s “GaBi LCA databases 2012”
3 Average European gross efficiency for biomass powered electricity plants, based on IEA data (reference year 2010)

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Application of accounting methods in practice
Primary energy factors using different methodologies
1 Primary energy factors for infrastructure/fuel supply (PE INTERNATIONAL’s “GaBi LCA databases 2012”), 2 Heath 2012
MJprimary energy / MJelectricity
Hydro Solar (thermal
electric)
Geo-
thermal
Type of
primary
energy
Option 1 Zero equivalent n.a.
Option 2 2a - Direct equivalent 1.0 1.0 1.0 total
2b - Physical energy content 1.0 3.0 10 total
2c - Substitution 2.5 2.5 2.5 total
Option 3 Non-renewable primary
energy only
0.00351 0.112 0.00481 non-renewable
Option 4 4a – Technical conversion
efficiency
0.00351 0.112 0.00481 non-renewable
1.2 8.1 4.5 renewable
4b – Physical energy content 0.00351 0.112 0.00481 non-renewable
1.0 3.0 10 renewable

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Application of accounting methods in practice
Primary energy factors for country specific grid mixes
Natural gas
4% Biomass
0,4%
Hydro
95%
Wind
1%
Norway
Coal
88%
Natural
gas
3%
Fuel oil
2%
Biomass
4%
Hydro
2% Wind
1%
Nuclear
20%
Coal
9%
Natural gas
32%
Fuel oil
5%
Biomass
2%
Hydro
15%
Wind
15%
Solar -
photovoltaic
2%
SpainPoland
Used energy sources for electricity generation in selected countries
(IEA data, reference year 2010)

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Application of accounting methods in practice
Primary energy factors for country specific grid mixes
MJprimary energy / MJelectricity
Grid mix
Norway
Grid mix
Spain
Grid mix
Poland
Type of
primary
energy
Option 1 Zero equivalent n.a.
Option 2 2a - Direct equivalent 1.2 1.7 2.9 total
2b - Physical energy content 1.2 2.1 2.9 total
2c - Substitution 1.9 2.5 3.0 total
Option 3 Non-renewable primary energy
only1
0.086 2.0 3.0 non-renewable
Option 4 4a – Technical conversion
efficiency1
0.086 2.0 3.0 non-renewable
1.3 0.83 0.21 renewable
4b – Physical energy content 0.0861 2.01 3.01 non-renewable
1.1 0.35 0.19 renewable
1 Primary energy factors for infrastructure / fuel supply (PE INTERNATIONAL’s “GaBi LCA databases 2012”)
Primary energy factors for imported electricity in energy statistics (Option 2) = 1.0 !

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Conclusions (1/2)
• Different options & methods to account for primary energy consumption
of renewable energy carriers:
• Consideration of the following options:
• Total primary energy
• Non-renewable primary energy
• Split up into non-renewable and renewable primary energy
• Methods to calculate primary energy consumption:
• Direct equivalent method
• Physical energy content method
• Substitution method
• Technical conversion efficiency method

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Conclusions (2/2)
• Depending on methodology, primary energy factors may distinctly
vary for the same renewable energy source.
• Split up into renewable and non-renewable primary energy could
help to interpret energy consumption over time:
• Finite energy sources are not added with infinite ones
• Both indicators can be determined and improved independently
• Primary energy factors, energy statistics or targets have to be
analysed and compared with care:
• Same methodology?
• Impact of increasing renewables and electricity imports?
• Is primary energy a helpful indicator for a target or analysis?

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Outlook
Policy Implications – Part 2
June 12, 2014, 15:00 by Andreas Hermelink
The webinar will present to what extent different definitions of primary
energy factors for renewables have implications on the three energy
policy fields:
1. EU Directives– Energy Performance of Buildings Directive (EPBD), Energy
Efficiency Directive (EED), Renewable Energy Directive (RED);
2. the influence on the target setting in overarching EU communications;
3. the influence on energy accounting (statistics).

22. Thank you!
22
Contact:
Alexander Stoffregen a.stoffregen@pe-international.com