OzEcco Today 2009 Transition to a low carbon economy Energy security….mainly transport Economic...

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OzEcco Today 2009• Transition to a low carbon economy

• Energy security….mainly transport• Economic growth……enough• Infrastructure• Ecological refurbishment• Whole economy resilience• Physical affluence…..enough• National debt• Balance of trade

OzEcco Today 2009• Transition to a low carbon economy

• Energy security….mainly transport• Economic growth……enough• Infrastructure• Ecological refurbishment• Whole economy resilience• Physical affluence…..enough• National debt• Balance of trade

Solutions not

Problems

Context for Work circa 1993• Future human population levels • Effect on land/water/air/biodiversity and natural amenity (environmental sectors)

• Humans effect everything….thus the meaning of life

• Search for a science based approach to integration (unpopular….not science)

• Economic ‘equilibrium’ models the norm

• But some ‘policy’ interest and support (until the results started to emerge)

ECONOMICEFFICIENCY

SOCIAL EQUITYENVIRONMENTALQUALITY

BAU

EconomicGrowth

ConservativeDevelopment

PostMaterialism

OzEcco Energy Flows Model

HMC Production & Use

Agriculture & ForestryMining

Services

HousingIndustry

CapitalStock

Industry

IndustrialOutput

Investment inOther SectorsReinvestment

in Industry Materialstandard of

Living

AvailableHMC International

Trade

Sector-specificActivities

+

-

+

++ +

(+)

Australian Stocks and Flows FrameworkHouseholds

ASFF

Demography

Materials & Energy

Land Resources

Water Resources

Air Resources

Balance of Trade Material Resources

Material Conversion

Artefacts /Infrastructure

Lifestyle

Population

Working population

Consumption

Services

Building Space

Transportation

Construction Equipment

Recycling

Processing & Assembly

Power Generation

Agriculture

Forestry

Fisheries

Mining

QUALITATIVEScenarios

+ BOOKS/Conferences

QUANTITATIVEModels

Aggregated & top down

Highly dis-aggregated & bottom up

SEPARATING Values from Data Analysis

OzEcco Energy Flows Model

HMC Production & Use

Agriculture & Forestry

Mining

Services

HousingIndustry

CapitalStock

Industry

IndustrialOutput

Investment inOther SectorsReinvestment

in Industry Materialstandard of

Living

AvailableHMC International

Trade

Sector-specificActivities

+

-

+

++ +

(+)

• Redevelop in Vensim• Fossil electricity • CCS• Renewables• Nuclear• Transport…gas and shale oil• Transport…methanol/DME and

ethanol• Continental land account• Continental water accounting• Detailed forestry sector• Sovereign wealth fund to

control rebound• Aggregate indicators

OzEcco Developments: Aggregated and top-down and also dollar/energy translation

Australian Stocks and Flows Framework

Two Policy Worlds:--Renewable energy--Conventional wisdom

Study Rationale• Oil replacement• Regional enterprise• Refurbish farming systems• Biodiversity augmentation• Salinity control• Carbon neutrality• Vital third landuse adding to

animals and crops• Drought resilient

The Renewables Transition ‘Base Case’ STOCKS

$74,000 billion

Base Case Stocks Accumulated 2006-2051

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

GDP-$billion CO2- tonnesmillion

Capital Stocks-PJ embodied

Future Fund-$ billion

PhysicalAffluence-GJ/capita

29 billion tonnes

Twice today’s level

$1,000 billion

7,200 GJ/capita =

60 msc

90% Shale Oil Scenarios

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP Accum CO2 PhysicalAffluence

CapitalStocks

Future Fund

Headline Indicators

Base Case

90% Shale R

90% Shale R+TE

90% Shale IS

90% Shale IS+TE

90% Natural Gas Scenarios

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP Accum CO2 PhysicalAffluence

CapitalStocks

Future Fund

Headline Indicators

Base Case

90% Gas

90%Gas + LE

90%Gas + LE/TE

Fossil Oil ReplacersShale

CNG

Biofuel Oil Replacers

90% Ethanol Scenarios

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP Accum CO2 PhysicalAffluence

CapitalStocks

Future Fund

Headline Indicators

Base Case

90% Crop

90% Ligno

90% Thermo

90% Methanol Scenarios

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP Accum CO2 PhysicalAffluence

CapitalStocks

Future Fund

Headline Indicators

Base Case

90% Meth

90%M +TE

90%M +ZE

90%M+TE/ZE

Ethanol

Methanol/DME

Renewable Electricity Transitioncomposition of electricity delivered

Proportional Source of Electricity Production by Technology Type: 80% Renewable Electricity

0%

20%

40%

60%

80%

100%

1981 1991 2001 2011 2021 2031 2041 2051

Simulation Period

Gig

aw

att

Ho

urs

EPWIN

EPSTH

EPSPV

EPNUC

EPHYD

EPGST

EPGCC

EPFCL

EPCST

EPCCC

EPBIO

EPBCS

Brown C

Black C

Wind

Coal CC

Gas CC

Hydro

Gas T

Solar T

Biomass

Solar PV

Source of Electricity Production in Gigawatt Hours by Technology Type: Base Case

0%

20%

40%

60%

80%

100%

1981 1991 2001 2011 2021 2031 2041 2051

Simulation Period

Pro

po

rtio

n

EPWIN

EPSTH

EPSPV

EPNUC

EPHYD

EPGST

EPGCC

EPFCL

EPCST

EPCCC

EPBIO

EPBCS

Brown C

Black C

Wind

Gas CCCoal CC

Gas CC

Base Case 80% Renewables

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP

Accum CO2

Physical Affluence

Capital Stocks

Future Fund

80% Renewable Electricity

Base Case

80% Renewable

Renewable Electricity Transition

Best Conventional Transitioncomposition of electricity delivered

Base Case 90% Advanced Generation

Proportional Source of Electricity Production by Technology Type: Best Conventional

0%

20%

40%

60%

80%

100%

1981 1991 2001 2011 2021 2031 2041 2051

Simulation Period

Gig

aw

att

Ho

urs

EPWIN

EPSTH

EPSPV

EPNUC

EPHYD

EPGST

EPGCC

EPFCL

EPCST

EPCCC

EPBIO

EPBCS

Brown C

Black C

Wind

Coal CC

Gas CC

Hydro

Gas T

Biomass

Fuel Cell

NuclearSource of Electricity Production in Gigawatt Hours by

Technology Type: Base Case

0%

20%

40%

60%

80%

100%

1981 1991 2001 2011 2021 2031 2041 2051

Simulation Period

Pro

po

rtio

n

EPWIN

EPSTH

EPSPV

EPNUC

EPHYD

EPGST

EPGCC

EPFCL

EPCST

EPCCC

EPBIO

EPBCS

Brown C

Black C

Wind

Gas CCCoal CC

Gas CC

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP

Accum CO2

Physical Affluence

Capital Stocks

Future Fund

90% Advanced Conventional Electricity

Base Case

90% Adv Elect

Best Conventional Transition

Carbon Sequestration and Storage

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Accum GDP

Accum CO2

Physical Affluence

Capital Stocks

Future Fund

80% CCS in Thermal Coal and Advanced Fossil

Base Case

CCS in Base Case

Advanced Fossil

CCS in Adv Foss

Nuclear with Safeguards

0

10000

20000

30000

40000

50000

60000

70000

80000

Accum GDP

Accum CO2

Physical Affluence

Capital Stocks

Future Fund

30 % and 60% Nuclear Power

Base Case

30% Nuclear

60% Nuclear

Full Renewables TransitionLow carbon electricity and transport fuels

Source: Foran… ‘Powerful Choices’ Study

Base Case, Normal Renewables and Low-Growth Renewables

0

20,000

40,000

60,000

80,000

Accum GDP Accum CO2 PhysicalAffluence

CapitalStocks

Future Fund

Headline Indicator

Mil

lio

ns

Base Case

Renewables

Low Growth

A lowgrowtheconomy

Issues: Philosophical, Technical and Computational

• Macro/macro scales• Efficiency, rebound, sovereign wealth funds

• Growth, no-growth, development• Globalised trade and balance of payments (is there no end to it?)

• Communication….specific technical issues e.g. CCS

• Communication….the big ideas