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Belgrade, May 19-21 2010 1 Anca Costescu Badea European Commission Joint Research Center Institute for Energy Energy Security Unit Energy Security Indicators http://www.jrc.ec.europa.eu/ Joint Research Centre (JRC)

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Page 1: Energy Security Indicators - Друштво термичара Србије · PDF file · 2010-06-08Energy Security Unit Energy Security Indicators Joint Research Centre ... Indicators

Belgrade, May 19-21 2010 1

Anca Costescu Badea

European CommissionJoint Research CenterInstitute for EnergyEnergy Security Unit

Energy Security Indicators

http://www.jrc.ec.europa.eu/

Joint Research Centre (JRC)

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Belgrade, May 19-21 2010 2

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Belgrade, May 19-21 2010 3

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Belgrade, May 19-21 2010 4

The 4 A’s

Energy Resource Availability Conventional and unconventional hydrocarbon resources, renewable resources (wind, solar, biofuels)

Accessibility Barriers Barriers (geopolitical, financial and human constraints, fiscal regimes, and need for major infrastructure and technology deployment) to explore and develop available resources.

Environmental Acceptabilityenvironmental and safety concerns

Investment Cost Affordabilityconsumers being able to afford energy services, capital and operating cost structures for developing various energy sources

���� Multidimensional conceptSource : APERC study (2007)

Introduction

Energy security = an uninterruptible supply of energy, in terms of quantities required to meet demand at affordable pricesEurope’s Vulnerability to Energy Crises, World Energy Council 2008

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Belgrade, May 19-21 2010 5

Strategies for Enhancing Energy Security

• Diversification related strategies:

– increasing the number of fuels and technologies that are in the energy mix

– increasing the number of suppliers for each fuel (especially if imported)

– developing storage capacity for different fuels (e.g., strategicreserves)

• Other strategies:– increasing energy efficiency, conservation, use endogenous energy

sources

Introduction

Source : Energy Security Quarterly (2008)

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Belgrade, May 19-21 2010 6

Europe’s energy policies objectives

European

Energy Policy

Security of

supply

Competitiveness

Sustainability

Objectives that might be conflictual

owa

Introduction

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Belgrade, May 19-21 2010 7

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Belgrade, May 19-21 2010 8

Indicators

Indicators in the energy field developed at different (energy) agencies

– Eurostat : 8 groups ~30– European Environment Agency : monitoring the integration of environmental

considerations in the energy sector� set of “energy and environment indicators” >30

– IAEA, UN Department of Economic and Social Affairs, IEA, Eurostat, EEA2005 : Energy indicators for sustainable development� Environmental (10)� Economic (16)� Social (4)

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Belgrade, May 19-21 2010 9

• How to measure security of supply?

• Everybody talks about security of supply, but which are the attempts to put figures on this concept?

• Specific indicators

– Simple– Composite (aggregated)

– Short term energy security– Long term energy security

– Demand side– Supply side

Indicators

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Belgrade, May 19-21 2010 10

Most popular

simple indicators

Energy intensity

= TPES / GDP

Indicators

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Belgrade, May 19-21 2010 11

Most popular

simple indicators

Energy dependency

for different energy sources

(oil, gas,…)

= import / gross inland energy [%]

Source : Eurostat

Indicators

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Belgrade, May 19-21 2010 12

Most popular

simple indicators

Reserves-to-Production Ratios

(oil, gas,…) = proven reserves / primary

production [y]

Source: World Resources Institute, 2005.

Indicators

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Belgrade, May 19-21 2010 13

Most popular simple indicators

Energy price (oil price)

Indicators

supply in relation to demandmeasure of economic impactsreflects depletion of energy resourcesproblems: speculation, short-term shortages,…

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Belgrade, May 19-21 2010 14

Most popular simple indicators

Sectoral indicators

share of biofuels in road transport= biofuel consumption /

petrol & diesel consumption [%]

The Renewable Energy Directive set a 10 % minimum target of renewable energy (primarily biofuels) in the transport sector, for all Member States individually, by 2020.

Source : Eurostat

Indicators

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Belgrade, May 19-21 2010 15

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Belgrade, May 19-21 2010 16

Proposal for a Regulation on Security of Gas Supply

Norway;

3061751;

15,9%

Nigeria;

588317; 3,1%Libya;

383615; 2,0%

Qatar;

275496; 1,4%

EU

indigenous;

7785401;

40,4%

Other;

320733; 1,7%

Egypt;

221305; 1,1%

Russia;

4685365;

24,3%

Algeria;

1943976;

10,1%

Source of natural gas, in TJ (2007)

Indicators

Simple indicators and policy making

Source: DG TREN

Import sources of new EU-8 MS

0%

10%

20%

30%

40%

50%

60%

70%

80%

Russia

Germany

Algeria

Norway

Others 11%

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Belgrade, May 19-21 2010 17

Indicators

Simple indicators and policy making

Gas Import dependency (%)

-120

-100

-80

-60

-40

-20

0

20

40

60

80

100

120

BE BG CZ

DK

DE

EE IE EL

ES FR IT CY LT LV LU HU

MT NL

AT PL

PT

RO SI

SK FI

SE UK

EU27

1990

2007

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Belgrade, May 19-21 2010 18

Impact of Ukrainian gas crisis on

individual countries

> 75 %

50 - 75 %

25 – 50 %

< 25%

0%

Ukraine

% of missing gas supply

Indicators

Simple indicators and policy making

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Belgrade, May 19-21 2010 19

Definition

There is sufficient capacity to supply total gas demand if the largest infrastructure fails (+ time dimension)

IPm � import pipelines

Pm � production

Sm � storage withdrawal

LNGm � LNG facility

Im � largest gas infrastructure

Tout � transmission outflow

Dmax � demand max

Advantages

� tangible definition of SoS� takes into account situation in individual MS & compares their security of supplysituation� element of MS responsibility, basis for further solidarity � calculated with available information, and for any area size (MS, region, EU)� flexibility for MS : storage, LNG, back-up import capacity, extra production, reverse flows, demand management (full subsidiarity applies)

Main element of proposed Regulation : infrastructure standards,

N-1 indicator

max

1[%] 1 100 %0 0m m m m m outIP P S LNG I T

ND

+ + + −≥

−− = ×

IndicatorsSimple indicators and policy making

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Belgrade, May 19-21 2010 20

N-1 indicator by MS and EU

Financial instruments available

• European Energy Programme forRecovery (EEPR Regulation)

– help DK, SE, HU, RO, BG, SI to cope

with N-1, and increase N-1 in other MS

– Reverse flows projects will help BG, SI

– Nabucco

• Baltic Energy Market InterconnectionPlan

– help FI, LT to cope N-1

• Ireland – projects to cope with N-1

0%

50%

100%

150%

200%

250%

300%

DK GR DE BE SK AT PL NL LV CZ EE ES IT HU FR UK RO SE LU PT BG SI LT IE FI EU

N-1

Normal EERP

Indicators

Simple indicators and policy making

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Belgrade, May 19-21 2010 21

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Belgrade, May 19-21 2010 22

More complex indicators : diversity

• Meaning : putting eggs in different baskets

• Use : energy (fuel) type, geographical source, suppliers � hedge against supply risks & against market power

• Shannon-Wiener Index

Maximum (=log(n)) when all the shares are equal (1/n)

• Herfindahl-Hirschman index

Minimum (=1/n) when all the shares are equal (1/n)

1

log( )n

i i

i

SWI p p=

= −∑

0 0 .1 0.2 0.3 0.4 0.5 0 .6 0.7 0.8 0.9 10

0.2

0.4

0.6

0.8

1

1.2

1.4

(1 /3, lo g (3))

2

1

n

i

i

HHI p=

=∑

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0 .9 1

0.4

0.5

0.6

0.7

0.8

0.9

1

(1/3, 1/3)

Indicators

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More complex indicators : diversity

problem 1

• diversity indices : how many options do we have?

• IEA 1991 : 6 options– coal, gas, oil, nuclear, hydro/geothermal, other

• IEA 2002 : 11 options– coal, gas, oil, nuclear, hydro, geothermal, solar, tide/wave/ocean,

wind, combustion renewables and waste, other

• diversity indices might yield significant different resultsdepending on the partitioning of options �sensitivity to linguistic conventions

Indicators

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Belgrade, May 19-21 2010 24

More complex indicators : diversity

problem 2

– Variety (number of categories)– Balance (their spread)– Disparity (degree to which categories are different) – difficult to

measure

– Ex: � Energy mix 1: coal 70%, gas 5%, wind 25%

� Energy mix 2: coal 70%, gas 25%, wind 5%

� Previous diversity indices cannot discriminate: SWI1=SWI2, HHI1=HHI2

� Wind is more disparate than coal & gas, but how to measure?

Source: Stirling, 2010

SWI, HHI

Indicators

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Belgrade, May 19-21 2010 25

More complex indicators :

diversity

problem 2

introduction of a disparity measure

Source : Stirling, 2010

Indicators

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Belgrade, May 19-21 2010 26

(even) More complex indicators : diversity

1. basic indicator : correction factor =12. energy net import dependency

correction factor = f(share of net import in PES of source i,share of imports of source i from region j in total import)

3. import dependency and long-term socio-political stabilitycorrection factor = same as 2 + extent of political stability in region j

(0 : unstable; 1 : stable)4. import dependency, long-term socio-political stability and resource depletion

correction factor = same as 3 + proven reserve-to-production ratio for source i in region j

1

log( )n

i i i

i

c p p=

−∑

correction factor

share of primary energy source i

Source : Jansen, 2004

Indicators

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Belgrade, May 19-21 2010 27

(even) More complex indicators : diversity

– separate indices for the main fuels (oil, gas, coal)– energy import diversification– political stability of the supplying country– domestic energy production of the importing region

1

log( )n

i i i

i

c p p=

−∑

Gas index

Source : Neumann, 2003

Indicators

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Belgrade, May 19-21 2010 28

(even) More complex indicators : diversity– separate indices for the main fuels (oil, gas, coal)– energy import diversification– political risks of the supplying country– risk associated with energy transit– economic impact of a supply disruption for each energy type

2

1

n

i i

i

c p=

Contribution to EU RiskExposure index : relative impact of each MemberState on the aggregate EU risk (short term)

Source : Le Coq, 2009

Indicators

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Belgrade, May 19-21 2010 29

(even) More complex indicators : diversity

arguments against supply security as an import problem for oil, gas, coal

• oil:not linked to the diversity of import sources because it is a global, fullyintegrated market, which might depend on one or a few highly unstableregions

• gas: US imports mainly from Canada � lack of diversity; domestic US gasproduction in the Gulf of Mexico exposed to risk of disruptions fromhurricanes � not reflected in the index

• coal: if a country would produce 100% of its domestic coal consumption �

higher degree of energy securitybut : the biggest energy supply disruption in UK’s history was a result of the coal miners’ strike in the ’80s

Source : Pierre Noel

Indicators

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Belgrade, May 19-21 2010 30

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Belgrade, May 19-21 2010 31

Composite (aggregated) indicators

– What is a composite indicator ?

A composite indicator is formed when individual indicators are compiled into a single index, on the basis of an underlying model of the multi-dimensional concept that is being measured.*

– Why composite indicators ?

− instruments for simple comparisons of countries (regions, universities, economic sectors…)

− monitor their performances and the time trends − convey policy messages

Source: Nardo, 2008

Indicators

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Belgrade, May 19-21 2010 32

Composite indicators

Supply/demand (SD) index (Scheepers et al. 2007)

– based on expert judgement on all possible relevant aspects of SOS (demand, supply, conversion, transport)

– attempt to cover the whole energy spectrum in the medium and long run– subjective weights– covers the period 2005 – 2020 (using Primes outputs)

Indicators

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Belgrade, May 19-21 2010 33

S/D Index, EU-27 and Member States, 2005, PRIMES based

Source : Jansen, 2010

Composite indicators

Indicators

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Belgrade, May 19-21 2010 34

Composite indicatorsIEA energy security indices (Lefevre 2009)

• physical unavailability

• price risk from supply market concentration

• Purpose : Develop a base methodology to analyse impacts of policy on ES in 2020/30 to help guide policy making

• Use : Project for DG Environment“Analysis of Impacts of Climate Change Policies on Energy Security”based on energy system modeling

Generic causal mechanisms of energy insecurity

Stage I

EventStage II

Impact on

sector of

supply

chain

Stage III

Knock-on

impacts on

other sectors of

supply chain

Stage IV

Impact on

demand

sector

Stage V

Impact on

Welfare

Indicators

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Belgrade, May 19-21 2010 35

Composite indicators

Willingness to pay (Bollen 2008)

• percentage of GDP a country is willing to pay for decreasingthe SOS risks; higher willingness for higher risks

– import ratio of a fuel– share of fuel in TPES– energy intensity

• expressed in monetary terms

Source: Bollen, 2008

Indicators

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Belgrade, May 19-21 2010 36

Composite indicators

• Oil vulnerability index (Gupta 2008)– based on 7 indicators

− ratio oil import value to GDP− oil consumption per unit of GDP− GDP per capita− oil share in TPES− ratio of domestic reserves to oil consumption− net oil import dependence, diversification of supply sources, political risks in oil-

supplying countries− market liquidity

– weights: PCA � increased robustness

• Vulnerability index (Gnansounou, 2008)– based on 5 indicators from economic, environmental & societal fields– weights: subjective choice– Use: «Europe’s Vulnerability to Energy Crises » World Energy

Council 2008

Indicators

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Belgrade, May 19-21 2010 37

Source: Kruyt, 2009

simple indicators : – some are used (import

dependence, oil price, non carbon, energy or oilintensity)

– some have a qualitative or limited used

– some are not used (diversityindices, marketconcentration, mean-variance portfolio

aggregated indicators :– not used

Assessment of the current use of different indicators in policy making

Indicators

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Belgrade, May 19-21 2010 38

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Gas case

9 indicator groups

1. Macro-economic indicators (energy intensity, consumption/capita, import bill indicator,…)

2. Energy balance indicators (production, imports, exports, transformation, conversion loss, distribution loss, energy industry use, final consumption …)

3. Reserves indicators (Indigenous production, proven gas reserves)4. Sectoral indicators (TFC industry, households, services, power generation, …)5. Diversification indicators (sources, suppliers, sectorial, routes, diversification

electr. production)6. Import risk indicator (import dependency, supplier shares, country risks,…)7. Infrastructure indicators (storage, LNG terminal, interconnection pipelines,…)8. Gas crisis indicators (Storage flexibility, LNG flexibility, fuel switching

flexibility,…)9. Gas flow model indicators (Successful strategies, gas supply margin, pipeline

use)

Indicators in projects at JRC-IE

Simple indicators

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Belgrade, May 19-21 2010 40

Gas crisis indicators

"Supply lost" indicators

"Imports lost" indicators

"Consumption lost" indicators

Assessment disruption

Possible responses MS

3. Third phase measures

2.3. LNG import flexibility

2.2. Alternative import flexibility

2.1. Route flexibility

2. Second phase measures

1.3. Increase production

1.2. Increase LNG send-out capacity

1.1. Increase storage withdrawal

1. First phase measures

SUPPLY SIDE

2. Interruptible demand

1. Fuel switching

DEMAND SIDE

Indicators in projects at JRC-IE

Simple indicators

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Crisis situation

86.1%

0.00

10.00

20.00

30.00

40.00

50.00

60.00

GR BG SK HU CZ PL AUT SI IT FR RO DEU

mcm

/day

0.0%

10.0%

20.0%30.0%

40.0%

50.0%

60.0%

70.0%80.0%

90.0%

100.0%

Gas disrupted (mcm/day)% of actual consumption

Indicators in projects at JRC-IE

Simple indicators

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Belgrade, May 19-21 2010 42

First phase measures

Action 1.1: Increase storage withdrawal

Action 1.2: Increase LNG send-out

Action 1.3: Increase production

Second phase measuresAction 2.1: Route flexibility

Action 2.2: Alternative imports flexibility

Action 2.3: LNG flexibility

Third phase measures

� Immediately

� 1-3 days

� If 1st & 2nd

phase are not enough

Indicators in projects at JRC-IE

Simple indicators

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Belgrade, May 19-21 2010 43

Source: EC, DG TREN

Action 1.1: Storage use

0

100

200

300

400

500

600

700

800

1/0

1/2

009

2/0

1/2

009

3/0

1/2

009

4/0

1/2

009

5/0

1/2

009

6/0

1/2

009

7/0

1/2

009

8/0

1/2

009

9/0

1/2

009

10/0

1/2

009

11/0

1/2

009

mcm

/d

AT BE

BG CZ

DE DK

EE ES

FR GR

HU IE

IT LT

LV LU

NL PL

PT RO

SI SE

SK UK

Jan 7: 725 mcm/day

Jan 1: 302 mcm/day

Indicators in projects at JRC-IE

Simple indicators

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Belgrade, May 19-21 2010 44

14,7%

62,1%

27,8%

86,0%

0

20

40

60

80

100

120

140

160

AT FR IT SI PL CZ HU RO SK BG

mc

m/d

ay

0,0%

50,0%

100,0%

150,0%

200,0%

250,0%

300,0%

350,0%

400,0%

% d

isru

tpio

n

increasewithdrawal

% disruption

Withdrawal

Indicators in projects at JRC-IE

Simple indicators

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Second phase supply-side measures

First phase measures

Action 1.1: Increase storage withdrawal

Action 1.2: Increase LNG send-out

Action 1.3 Increase production

Second phase measuresAction 2.1: Route flexibility

Action 2.2: Alternative imports flexibility

Action 2.3: LNG flexibility

Third phase measures

Indicators in projects at JRC-IE

Simple indicators

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0

50

100

150

200

250

300

350

400

01/0

1/09

03/0

1/09

05/0

1/09

07/0

1/09

09/0

1/09

11/0

1/09

13/0

1/09

15/0

1/09

17/0

1/09

19/0

1/09

mc

m/d

AT BE BG

CZ DE DK

EE ES FI

FR GR HU

IE IT LT

LV LU NL

PL PT RO

SI SE SK

UK CRO BiH

SRB FYROM

No route flexibility: Hungary, Slovak Republic, Bulgaria, Romania, Greece, Slovenia

Route flexibility: Poland, Germany, Czech Republic, Lithuania, Finland.

=> Poland: 82,6% of Russian Imports

=> Czech Republic: 45% of Russian I.

Action 2.1: Route flexibility

• Ukraine transit was completely blocked (=264 mcm/day). However EU imports from Russia decreased only by 207 mcm/day.

• Some Russian gas could be transported via alternative routes (via Belarus)

Source: DG TREN

Indicators in projects at JRC-IE

Simple indicators

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Action 2.2: Import flexibility

• Alternative gas was available- Norway (CZ, HU, AUT)

- Lybia (IT)

- Algeria (SI)

- Netherlands

• Import flexibility constrained by

interconnection capacity- SK: 1 pipeline from UA

- RO: 2 pipelines from UA

- BG: 98% capacity from RO

• No import flexibility for these

countries

2,58

19

10

10,1

3

9

115

126

12,87

301

Capacity pipelines in mcm/day

Indicators in projects at JRC-IE

Simple indicators

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Action 2.3: LNG imports flexibility

(GREECE)

Source: EC, DG TREN

0

20

40

60

80

01/01/09 03/01/09 05/01/09 07/01/09 09/01/09 11/01/09 13/01/09 15/01/09 17/01/09 19/01/09 21/01/09

mcm

/d

Gas amount in storage, mcm Gas stocks change, mcm/d (-withdrawal, + injection)

Gas withdrawal, mcm/d Maximum withdrawal capacity, mcm/d

Gas consumption, mcm/d

2nd phase: rescheduled LNG cargoes1st phase: increase send-out

Indicators in projects at JRC-IE

Simple indicators

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First phase measures

Action 1.1: Increase storage withdrawal

Action 1.2: Increase send-out capacity

Action 1.3 Increase production

Second phase measuresAction 2.1: Route flexibility

Action 2.2: Alternative imports flexibility

Action 2.3: LNG flexibility

Third phase measures� SK on Jan 18: reversal pipeline SK-CZ

� BG on Jan 19: reversal pipeline BG-GR

Indicators in projects at JRC-IE

Simple indicators

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Indicators in projects at JRC-IE

Simple indicators

Supply side measures results for the 2009 gas crisis

% of disruptionCzech

RepublicHungary Romania Greece

Slovak

RepublicBulgaria

Group I Group II Group II Group II Group III Group III

1.1. Storage 132% 86% 62% 0% 28% 15%

1.2. LNG send-

out0% 0% 0% 62% 0% 0%

1.3. Production 0% 10% 26% 0% 1% 1%

TOTAL 1st phase 132% 96% 88% 62% 28% 16%

2.1. Route flex 25% 0% 0% 0% 0% 0%

2.2. Import flex 19% 13% 13% 0% 0% 0%

2.3. LNG flex 0% 0% 0% 169% 0% 0%

TOTAL 1st + 2nd 176% 109% 101% 231% 28% 16%

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Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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– How to build composite indicators ?

– 10 steps

address only one step:

– the weighting method

– ORDERED WEIGHTED AVERAGING (OWA)

Indicators in projects at JRC-IE

Composite indicator

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ORDERED WEIGHTED AVERAGING (OWA)used in web technologies (metasearch engines)

– compensatory aggregation (the previous composite

indicators)weights = trade-offs between indicators: a deficit in one

can be compensated by a surplus in another (ex: linearaggregation)

– non-compensatory aggregationdifferent goals are equally important � find a compromise

between those goalsincrease in economic performance cannot compensate for a worsening of the environment

– embed expert preferences

Indicators in projects at JRC-IE

Composite indicator

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– OWA : how it works

– weights associated to an ordered position

– the user can place most of the weights

� near the first components to emphasize higher ranks (optimism, at least one)

� near the last components to emphasize lower ranks(pessimism, for all)

(1 )i

n

i iwC II=

= ∑

Indicators in projects at JRC-IE

Composite indicator

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• choice of the simple inditators : availability of consistent data,

present and future• do not include geopolitical, sociological, price related,…

aspects

• from EU-27 energy outlook from 2005 to 2030

• results with PRIMES model under the baseline scenario(current trends and policies implemented by the end of 2006)

• EXAMPLE of how an energy security composite indicator

can be build

Indicators in projects at JRC-IE

Composite indicator

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1. energy intensity2. carbon intensity3. import dependency on coal4. import dependency on oil5. import dependency on gas

6. primary production (5 pes)7. electricity generation capacity

(11 fuels)8. energy demand in transport

(6 transport modes)

simple indicators

diversity indicators

Shannon Wiener index

1

1log( )

log

N

i i

i

SWI p pN =

−= ∑

Indicators in projects at JRC-IE

Composite indicator

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2005

energy intensity

carbon intensity

coal import

oil import

gas import

primary energy sources

electricity generation

energy demand in

transport

Belgium

Poland

Indicators in projects at JRC-IE

Composite indicator

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Results

• 7 preferences

• optimism � pessimism

• 6 years (2005, 2010, …, 2030)

• aggregation on ranks (1 is the best)

Indicators in projects at JRC-IE

Composite indicator

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optimistic preference

0000 10101010 20202020 30303030

DKDKDKDKGRGRGRGRHUHUHUHUMTMTMTMTNLNLNLNLPLPLPLPLFIFIFIFI

SESESESEDEDEDEDEIEIEIEIE

FRFRFRFRROROROROUKUKUKUKPTPTPTPTEEEEEEEEESESESESLVLVLVLVATATATATBEBEBEBEBGBGBGBGCZCZCZCZITITITITSISISISILTLTLTLTLULULULUSKSKSKSKCYCYCYCY

rank

2010201020102010

2030203020302030

Indicators in projects at JRC-IE

Composite indicator

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risk neutral preference0000 10101010 20202020 30303030

UKUKUKUKDKDKDKDKDEDEDEDEFIFIFIFI

ESESESESHUHUHUHUSESESESEGRGRGRGRROROROROIEIEIEIEATATATATNLNLNLNLSISISISIITITITIT

FRFRFRFRBGBGBGBGBEBEBEBESKSKSKSKPTPTPTPTCZCZCZCZLVLVLVLVPLPLPLPLEEEEEEEELTLTLTLTMTMTMTMTLULULULUCYCYCYCY

rank

2010201020102010

2030203020302030

Indicators in projects at JRC-IE

Composite indicator

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pesimistic preference0000 10101010 20202020 30303030

ESESESESDEDEDEDEFIFIFIFI

SESESESEUKUKUKUKFRFRFRFRHUHUHUHUBEBEBEBEATATATATDKDKDKDKITITITIT

NLNLNLNLIEIEIEIELTLTLTLT

GRGRGRGRLVLVLVLVCZCZCZCZEEEEEEEELULULULUPTPTPTPTSKSKSKSKPLPLPLPLROROROROBGBGBGBGCYCYCYCYMTMTMTMTSISISISI

rank

2010201020102010

2030203020302030

Indicators in projects at JRC-IE

Composite indicator

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Belgrade, May 19-21 2010 62

Outline

Introduction

IndicatorsSimple indicators

Simple indicators and policy making (an example)

Diversification indicators

Composite indicators

Indicators in projects at JRC-IESimple indicators

Composite indicator

Conclusions & References

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Conclusions & References

�Constraint: available & reliable data

�Indicators cover energy security 4 A’s,

less the acceptability

�Use of composite indicators in policy making: limited

�Might convey contradictory messages if not carefully used

�Communication!

Source: Kruyt 2009

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Conclusions & References

1.Europe’s Vulnerability to Energy Crises, World Energy Council 2008

2.APERC study (2007) A Quest for Energy Security in the 21st Century Resources and Constraints,

Asia Pacific Energy Research Centre, www.ieej.or.jp/aperc

3.Energy Indicators For Sustainable Development: Guidelines And Methodologies IAEA, UNDESA, IEA,

Eurostat, EEA, Vienna, 2005

4.Energy Security Quarterly, USAID SARI/ENERGY, Contract Number 386-C-00-07-00033-00, 2008

5.A. Stirling, Multicriteria diversity analysis: A novel heuristic framework for appraising energy portfolios,

Energy Policy, 38, 4, 2010, pp. 1622-1634

6.IEA 2001: Toward a sustainable energy future. OECD/IEA, Paris 7.Bert Kruyt, D.P. van Vuuren, H.J.M. de Vries, H. Groenenberg Indicators for energy security, Energy

Policy, 37, 6, 2009, pp. 2166-21818.Jansen, J.C., Arkel, W.G. van, Boots, M.G., Designing indicators of long-term energy supply security,

ECN report, ECN-C--04-007, 2004.9.A. Neumann, C. von Hirschhausen, Security of (Gas) Supply: Conceptual Issues, Contractual

Arrangements, and the Current EU Situation INDES Academic Workshop (May 2003,

Amsterdam/Netherlands

10.Le Coq C., Paltseva E. Measuring the security of external energy supply in the European Union

Energy Policy, 37(11), 2009, pp. 4474-448111.http://www.energypolicyblog.com/author/pierrenoel/12.J.C. Jansen, A. J. Seebregts, Long-term energy services security: What is it and how can it be

measured and valued?, Energy Policy, 38(4), 2010, pp. 1654-1664

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Belgrade, May 19-21 2010 65

Conclusions & References

13.Scheepers M.J.J., Seebregts, A.J., Jong, J.J. de, Maters, J.M., EU Standards for Energy Security of Supply, ECN report number ECN-E—07-004, 2007.

14.Lefèvre N., Measuring the energy security implications of fossil fuel resource concentration, Energy Policy, doi:10.1016/j.enpol.2009.02.003, 2009.

15.Bollen, J.C., Energy Security, air pollution, and climate change: an integrated cost benefit approach.

MNP, Bilthoven 2008

16.E. Gupta Oil vulnerability index of oil-importing countries Energy Policy, Volume 36, Issue 3, March

2008, Pages 1195-1211

17.E. Gnansounou, Assessing the Energy Vulnerability: Case of Industrialised Countries, Energy Policy,

36(10), pp. 3734-3744, 200818.Bert Kruyt, D.P. van Vuuren, H.J.M. de Vries, H. Groenenberg Indicators for energy security, Energy

Policy, 37, 6, 2009, pp. 2166-218119.Proposal for a Regulation on Security of Gas Supply Energy Working Group, 16 July 2009 J.-A.

Vinois, DG TREN20.L.Vanhoorn, H.Faas, Short and long-term indicator and early warning tool for energy security, IEAA

conference, Vienna 200921.Rocco C, Tarantola S, Costescu Badea A, Bolado Lavin R. Composite Indicators for Security of

Energy Supply in Europe using Ordered Weighted Averaging. In Conference Proceedings: Radim Bris,

C. Guedes Soares, Sebastian Martorell, editors. Reliability, Risk and Safety: Theory and Applications,

2009. p. 1737-1744.

22.Nardo M, M Saisana, A Saltelli, S Tarantola, A Hoffman, E Giovannini, Handbook on Constructing

Composite Indicators and User Guide. OECD Paris, JRC Ispra, 200823.EU 2007: European Energy and Transport, Trends to 2030 – Update 2007, European Commission,

DG TREN24.Energy Policy Volume 38, Issue 4, Pages 1607-2074 (April 2010) Energy Security - Concepts and

Indicators with regular papers Edited by Andreas Löschel, Ulf Moslener and Dirk T.G. Rübbelke

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Thank you for your attention!