en-roads review andrew jones, lori siegel, jack homer, and john sterman november 26, 2014

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En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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Page 1: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

En-ROADS Review

Andrew Jones, Lori Siegel, Jack Homer, and John Sterman

November 26, 2014

Page 2: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Agenda• Welcome, Introductions and Context• Model background• Operating the model (brief

demonstration of reference scenario)

• Model structure, reference scenario vs. data, and policy/sensitivity testing

• Questions, comments, and “what-ifs”

• How to proceed

Page 3: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Model Development Team for En-ROADS

Dr. Tom Fiddaman, Ventana SystemsDr. Jack Homer, Homer ConsultingAndrew Jones, Climate InteractiveDr. Phil Rice, Climate InteractiveDr. Beth Sawin, Climate InteractiveDr. Lori Siegel, Climate InteractiveStephanie McCauley, Climate InteractiveProf. John Sterman, MIT System Dynamics Group

Page 4: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

• Purpose of the External Review:• Assessment from experts of En-ROADS’

appropriateness relative to its purpose• Determine areas for improvement

• Purpose of En-ROADS:• Improve understanding of important energy,

land use, and climate dynamics among non-scientists as a means to effective action by:

• Policymakers• Educators• The Public

Purposes

Page 5: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Building Confidence in This Simulation

• Policy relevance• Evidence-based structure and parameters• Fit to history• Reference run compared with others’

projections and structurally explained• Policy/sensitivity results, structurally

explained

Page 6: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

The Simulation in Action

Page 7: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

What global changes over the next decade do you think are required and possible to drive the energy transition?

* As a driver of energy demand, not technological innovation or investment

** New Zero C: technological innovation leading to a new zero carbon energy supply, such as Thorium fission

Population and Economic Growth*

Energy Efficiency and

Demand

Energy Supply

Other

Population growth

No changeDecrease Increase

GDP per capita

Mobile

Stationary

No change

Modestincrease

Big increase

Coal

Oil

Gas

Solar & Wind

Biofuels

New Zero C**

Nuclear

CCS

No changeLess More

No change $/ton

Achieved by (year)

Land use emissions

Other green- house gases

No change

Small decrease

Big decrease

Carbon price

like methane & N2O

Other Policy and Regulatory

(Example Handout for Workshop Participants)

Page 8: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

• EMF Model Suite• BP Energy Outlook• HYDE (PBL)• US EIA WEO• LBL• HADCRUT• IPCC

Incorporate structure, equations, and data from diverse research teams

DOE UN IEA GISS CDIAC NCDC NOAA MIT EPPA V. Smil Maddison Houghton

Page 9: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Historical DataGDP Hyde energy consumption by fuel type, 1925-1965.

Hyde historical data for Kaya identity, 1800-2000

Total Final Energy Demand

Hyde energy consumption by fuel type, 1925-1965 Hyde historical data for Kaya identity, 1800-2000WEO 2012 data for final and primary energy by source, 1990-2035BP Statistical Review of World Energy June 2014

Electricity production

WEO 2012 data for final and primary energy by source, 1990-2035

CO2 emissions from energy

Hyde energy consumption by fuel type, 1925-1965 Hyde historical data for Kaya identity, 1800-2000WEO 2012 data for final and primary energy by source, 1990-2035

Primary Energy Demand by Source

WEO 2012 data for final and primary energy by source, 1990-2035

Energy Intensity World Resources Institute (2011), US Energy Information Administration (2014), International Energy Agency (2011), Lawrence Berkeley National Laboratory (1998)

Page 10: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Published ProjectionsProjected Energy Mix, GHG emissions, atmospheric concentrations, and temperature

Energy Information Agency (EIA) International Energy Outlook 2014World Energy Outlook (WEO) 2012Energy Modeling Forum (EMF)Special Report on Emissions Scenarios (SRES)Representative Concentration Pathways (RCP)Hyde 2010British Petroleum (BP) Statistical Review of World Energy 20104

Projected Population

United Nations, Department of Economic and Social Affairs, Population Division (2014). World Population Prospects: The 2010 Revision, CD-ROM Edition. Medium, Low, and High Scenarios.

Energy Prices British Petroleum (BP) Statistical Review of World Energy 20104Annual Energy Outlook 2014 Early Release 2013

Page 11: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Studies on Carbon-Temperature DynamicsCarbon Cycle and Temperature

Bolin, B. 1986. Fiddaman. T.S. 1997. Nordhaus, W. D. 1992, 1994, 2000 Goudriaan, J. and P. Ketner. 1984. Oeschger, H., U. Siegenthaler, et al. 1975.Rotmans, J. 1990. Schwartz, S.E. 2007. Schneider, S.H., and S.L. Thompson. 1981. Wullschleger, S. D., W. M. Post, et al. 1995.

Page 12: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Studies Providing Key Parameter EstimatesCommercialization Time

Akiner, S. & Aldis, A. (2004) Smil,V. (2006)

Progress Ratios Junginger, M., et al. (2010)McDonald, A., Schrattenholzer, L (2001)

Non-Renewable Energy Resources

IPCC. (2007)World Energy Council. (2010)

Renewable Energy Resources

IPCC. (2011)Jacobson, M. Z. (2009)

Construction Materials

J. Sullivan, et al. (2010)Kris R. Voorspools, et al. (2000)

Development Time Jacobson, M. Z. (2009)US Department of Energy (2008)

Construction Time Jacobson, M. Z. (2009)US Department of Energy (2008)

Lifecycle Emissions Hiroki, H. (2005)White, S. & Kulcinski, G. (1998)

Building Efficiency US Department of Energy (2011)

Transportation US Bureau of Transportation Statistics (2011)

Page 13: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

En-ROADS and C-ROADS Scope

Other GHG emissions

Population and

GDP/capita(1 or 6

regions)

En-ROADSSystem of Energy/Economics/Climate

Land use

Energy Demand, Supply, and Prices

Technology and Policies

CO2 emissions

GHG cycles

Climate Tempera-ture

C-ROADS

Other forcings

Impacts(pH, SLR)

GHG emissionsby regions

GHG emissions

Page 14: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Simulation Demonstration

Page 15: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Overview of Structure and Reference Scenario

Assumptions

Page 16: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

En-ROADS Simulation Structure

Energy Supply• Carbon intensity by source• Costs, learning, R&D

success, complementary assets, resource availability

Energy Demand• Energy intensity• Stationary & mobile• Elec & Non-elec• Aging, efficiency, &

retrofits

Economy• GDP/capita• Population

Climate• Emissions• Concen-

trations• Temp.• Sea level

rise

GHGs emissions and removals• Other gases • Land use CO2

EnergyCO2

EmissionsPolicies andScenarios• Carbon price• Subsidies/Tax• Tech.

breakthrough

PricesMarket-clearing

Utilization

Page 17: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Hydro

Nuclear

Stationary• Electric• Non-Elec

Mobile• Electric• Non-Elec

ElectricityProduction•Elec thermal •CCS•Renewables•Hydro•New Tech•Nuclear

Nonelectric Consumption

s

Oil

NaturalGas

Coal

Biofuels

Extracted Fuels

s

Oil

NaturalGas

Coal

Biofuels

Delivered Fuels Carriers Demand

Renewables (Solar, Wind, Geothermal)

New Tech

En-ROADS Energy Flows

Page 18: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

En-ROADS, though aggregate, captures realistic energy/economy dynamics

1. Separate pricing of 4 fuel types (extracted/spot, delivered) and electricity

2. Short-term and long-term consumer responses to price: curtailment, rebound, energy efficiency, choice of fuels and electricity

3. Extracted fuel prices fluctuate via endogenous commodity cycle4. Delivered fuel prices affected by extracted prices, but more stable5. Electricity source decisions based largely on cost comparison, but

also network complementarities and performance standards6. Learning curves reduce energy production costs7. Time delays (and possible “overheating”) in building new supply

capacity8. Fossil fuel production costs increased by resource depletion9. Other production costs (biofuel, hydro, renewables) potentially

increased by flow limits

Page 19: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

• In the reference scenario, extracted fuel prices are set equal to their historical values during 1990-2013, and change endogenously thereafter. • It is possible to reproduce the cyclical nature of extracted prices

broadly but not all of the historical ups and downs

• 1990-2013 energy volumes, which we want to reproduce, are affected by extracted prices

• We want to give the model the proper head start to produce plausible future cycles; without that head start, the 2013 disequilibrium is muffled and the future cycles are less prominent as a result

• The reference scenario assumes no carbon pricing or other policy interventions

• UN medium population scenario

• Growth in GDP per capita at a decreasing rate

Reference Scenario Assumptions

Page 20: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

• Kaya Variables• Compared with EMF suite to 2100

• Energy Supply by Source• Compared with WEO to 2020

• Energy Prices by Source• Fossil fuel prices compared with EIA to 2040

Reference Scenario Results

Page 21: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Kaya Variables to 2100 vs. EMF27

Page 22: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

GDP Comparisons to EMF

700

525

350

175

0

2000 2020 2040 2060 2080 2100Time (Year)

T$U

S20

10/Y

ear

EMF27 Ref GDP[EMF27 BET] : RefEMF27 Ref GDP[EMF27 EC IAM] : RefEMF27 Ref GDP[EMF27 FARM] : RefEMF27 Ref GDP[EMF27 GCAM] : RefEMF27 Ref GDP[EMF27 GRAPE] : RefEMF27 Ref GDP[EMF27 IMACLIM] : RefEMF27 Ref GDP[EMF27 IMAGE] : RefEMF27 Ref GDP[EMF27 MERGE] : RefEMF27 Ref GDP[EMF27 MESSAGE] : RefEMF27 Ref GDP[EMF27 POLES] : RefEMF27 Ref GDP[EMF27 REMIND] : RefEMF27 Ref GDP[EMF27 TIAM WORLD] : RefEMF27 Ref GDP[EMF27 WITCH] : RefEn-ROADS GDP

Global GDP to 2100

Page 23: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Energy Intensity Comparisons to EMF

20

15

10

5

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

T$U

S20

10

EMF27 Ref energy intensity of GDP[EMF27 BET] : RefEMF27 Ref energy intensity of GDP[EMF27 EC IAM] : RefEMF27 Ref energy intensity of GDP[EMF27 FARM] : RefEMF27 Ref energy intensity of GDP[EMF27 GCAM] : RefEMF27 Ref energy intensity of GDP[EMF27 GRAPE] : RefEMF27 Ref energy intensity of GDP[EMF27 IMACLIM] : RefEMF27 Ref energy intensity of GDP[EMF27 IMAGE] : RefEMF27 Ref energy intensity of GDP[EMF27 MERGE] : RefEMF27 Ref energy intensity of GDP[EMF27 MESSAGE] : RefEMF27 Ref energy intensity of GDP[EMF27 POLES] : RefEMF27 Ref energy intensity of GDP[EMF27 REMIND] : RefEMF27 Ref energy intensity of GDP[EMF27 TIAM WORLD] : RefEMF27 Ref energy intensity of GDP[EMF27 WITCH] : RefEn-ROADS Total Primary Energy Intensity of GDP

Energy Intensity to 2100

Page 24: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Energy Comparisons to EMF

2000

1500

1000

500

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Total energy primary equiv[EMF27 BET] : RefEMF27 Ref Total energy primary equiv[EMF27 EC IAM] : RefEMF27 Ref Total energy primary equiv[EMF27 FARM] : RefEMF27 Ref Total energy primary equiv[EMF27 GCAM] : RefEMF27 Ref Total energy primary equiv[EMF27 GRAPE] : RefEMF27 Ref Total energy primary equiv[EMF27 IMACLIM] : RefEMF27 Ref Total energy primary equiv[EMF27 IMAGE] : RefEMF27 Ref Total energy primary equiv[EMF27 MERGE] : RefEMF27 Ref Total energy primary equiv[EMF27 MESSAGE] : RefEMF27 Ref Total energy primary equiv[EMF27 POLES] : RefEMF27 Ref Total energy primary equiv[EMF27 REMIND] : RefEMF27 Ref Total energy primary equiv[EMF27 TIAM WORLD] : RefEMF27 Ref Total energy primary equiv[EMF27 WITCH] : RefEn-ROADS Primary Energy Equiv Demand

Energy Use to 2100

Page 25: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Carbon Intensity Comparisons to EMF

80

60

40

20

0

2000 2020 2040 2060 2080 2100Time (Year)

MtC

O2/

EJ

EMF27 Ref FF CO2 intensity of energy[EMF27 BET] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 EC IAM] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 FARM] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 GCAM] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 GRAPE] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 IMACLIM] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 IMAGE] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 MERGE] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 MESSAGE] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 POLES] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 REMIND] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 TIAM WORLD] : RefEMF27 Ref FF CO2 intensity of energy[EMF27 WITCH] : RefEn-ROADS Carbon Intensity of Primary Energy

Carbon Intensity of Energy to 2100

Page 26: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Carbon Intensity of GDP Comparisons to EMF

.7

.525

.35

.175

0

2000 2015 2030 2045 2060 2075 2090Time (Year)

GtC

O2/

T$U

S20

10

EMF27 Ref FF CO2 intensity of GDP[EMF27 BET] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 EC IAM] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 FARM] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 GCAM] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 GRAPE] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 IMACLIM] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 IMAGE] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 MERGE] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 MESSAGE] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 POLES] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 REMIND] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 TIAM WORLD] : RefEMF27 Ref FF CO2 intensity of GDP[EMF27 WITCH] : RefEn-ROADS Average Carbon Intensity of GDP

Carbon Intensity of GDP to 2100

Page 27: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

CO2 from Energy Comparisons to EMF

100

75

50

25

0

2000 2020 2040 2060 2080 2100Time (Year)

GtC

O2/

Yea

r

EMF27 Ref FF CO2 emissions[EMF27 BET] : RefEMF27 Ref FF CO2 emissions[EMF27 EC IAM] : RefEMF27 Ref FF CO2 emissions[EMF27 FARM] : RefEMF27 Ref FF CO2 emissions[EMF27 GCAM] : RefEMF27 Ref FF CO2 emissions[EMF27 GRAPE] : RefEMF27 Ref FF CO2 emissions[EMF27 IMACLIM] : RefEMF27 Ref FF CO2 emissions[EMF27 IMAGE] : RefEMF27 Ref FF CO2 emissions[EMF27 MERGE] : RefEMF27 Ref FF CO2 emissions[EMF27 MESSAGE] : RefEMF27 Ref FF CO2 emissions[EMF27 POLES] : RefEMF27 Ref FF CO2 emissions[EMF27 REMIND] : RefEMF27 Ref FF CO2 emissions[EMF27 TIAM WORLD] : RefEMF27 Ref FF CO2 emissions[EMF27 WITCH] : RefEn-ROADS CO2 Emissions from Energy

CO2 Emissions from Energy to 2100

Page 28: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Energy Supply by Source to 2020 vs. WEO

Page 29: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fuel Production to 2020

INCLUDES• Renewables

e.g., solar, wind, geothermal • HydroEXCLUDES • Bio

Primary Energy from Coal

200

150

100

50

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADSWEO

BPEIA

Primary Energy from Oil

300

225

150

75

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADSWEO

BPEIA

Primary Energy from Gas

200

150

100

50

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADSWEO

BPEIA

Primary Energy from Nuclear

40

30

20

10

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADSWEO

BPEIA

Primary Energy from Renew

90

67.5

45

22.5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Note: Blue line = En-ROADS outputRed dots represent single data points from WEO 2012.

Page 30: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Note: Blue line = En-ROADS outputRed dots represent single data points from WEO 2012.

Main

Final Energy from NonElec Oil

200

150

100

50

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from NonElec Gas

70

52.5

35

17.5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from NonElec Bio

60

45

30

15

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from NonElec Coal

50

37.5

25

12.5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Mobile Fuel

200

150

100

50

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Total Final Energy (Consumption)

500

375

250

125

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

CO2 FF Emissions

40

30

20

10

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

Gto

nsC

O2/

Yea

r

EnROADS WEO

Fuel End-Use to 2020

Page 31: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

INCLUDES• Renewables

e.g., solar, wind, geothermalEXCLUDES • Hydro• Bio

Final Energy from Nuclear

20

15

10

5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Hydro

20

15

10

5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Elec Oil

8

6

4

2

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Elec Gas

30

22.5

15

7.5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Elec Bio

3

2.25

1.5

.75

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Elec Coal

50

37.5

25

12.5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Renewables

6

4.5

3

1.5

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADS WEO

Final Energy from Electricity

200

150

100

50

0

1990 1994 1998 2002 2006 2010 2014 2018Time (Year)

EJ/

Yea

r

EnROADSWEO

BP

*

Electricity Production to 2020

Note: Blue line = En-ROADS outputRed dots represent single data points from WEO 2012.

Page 32: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fossil Fuel Prices to 2040 vs. EIA

Page 33: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Note: En-ROADS extracted prices for oil, coal, and gas are set equal to their historical values during 1990-2013, and are simulated starting thereafter; delivered fuel prices are simulated throughout.

Fuel Price of Extracted Oil

200

100

0

1990 2000 2010 2020 2030 2040Time (Year)

$/bo

e

En-ROADS Extracted Oil PricesEIA Extracted Oil Prices

Fuel Price of Delivered Oil

200

100

0

1990 2000 2010 2020 2030 2040Time (Year)

$/bo

eEn-ROADS Delivered Oil PricesEIA Delivered Oil Prices

Oil Prices 1990 to 2040 vs. EIA

Page 34: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fuel Price of Extracted Coal

70

35

0

1990 2000 2010 2020 2030 2040Time (Year)

$/tc

e

En-ROADS Extracted Coal PricesEIA Extracted Coal Prices

Fuel Price of Delivered Coal

100

50

0

1990 2000 2010 2020 2030 2040Time (Year)

$/tc

e

En-ROADS Delivered Coal PricesEIA Delivered Coal Prices

Fuel Price of Extracted Gas

20

10

0

1990 2000 2010 2020 2030 2040Time (Year)

$/M

CF

En-ROADS ExtractedGas PricesEIA Extracted Gas Prices

Fuel Price of Delivered Gas

20

10

0

1990 2000 2010 2020 2030 2040Time (Year)

$/M

CF

En-ROADS Delivered Gas PricesEIA Delivered Gas Prices

Coal and Gas Prices to 2040 vs. EIA

Page 35: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Policy/Sensitivity Testing

Page 36: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Two Settings for Each Policy: High & ModeratePolicy Lever Setting

Carbon priceBase: 0 $/TonCO2High: 100 $/TonCO2

Moderate: 50 $/TonCO2

Electric subsidy

Base: 0 $/GJ

High: 20 $/GJ (~0.072 $/kWh)

Moderate: 10 $/GJ (~0.036 $/kWh)

Source subsidy renewables

Base: 0 $/GJ

High: 10 $/GJ (~0.036 $/kWh)

Moderate: 5 $/GJ (~0.018 $/kWh)

Coal taxBase: 0 $/GJHigh: 5 $/GJ (~147 $/tce)

Moderate: 1 $/GJ (~29 $/tce)

Energy efficiency improvement (e.g., in response to performance standards)

Base:Stationary: 1.2 %/yearMobile: 0.5 %/year

High: 5 %/yearModerate: 2 %/year

Page 37: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Key Uncertain Parameters for Sensitivity Testing

Parameter Ref. Run Value Min Max Notes

Carrier network sensitivity [“CNS”] 0.2 0.1 0.5

Exponent (positive) for the effect of current carrier share on carrier attractiveness. Early adoption of electricity is slow but facilitates more rapid adoption later on.

Demand elasticity of fuels [“DE”]

Fuels: 0.1Electricity: 0.2 0.05 0.2

Short-term elasticity (negative) of end-use demand to effective energy price (i.e., price adjusted for end-use energy efficiency). Affects expressed energy demand and market-clearing prices.

End use carrier share cost sensitivity [“EUCS”]

2 1 3Exponent (negative) for the effect of aggregate fuel vs. electricity cost on the shares of new end-use capital investment.

Long term GDP growth rate 1.6 1 2.4 Global long-term GDP growth rate approached

gradually 2014 to 2100.Initial available resource remaining in EJ [“IARR”]

Coal: 100000, Oil: 12500, Gas: 9000

Coal: 70000, Oil: 6000, Gas: 6000

Coal: 150000, Oil: 25000, Gas: 25000 Recoverable resource remaining as of 1990.

Profit effect on desired extraction capacity [“EC”]

1.15 1.05 1.25 Determines the rate of expansion for extraction capacity in response to profitability.

Progress ratio renewables (“PR”) 0.80 0.75 0.9 Ratio of unit cost per doubling of cumulative

production. Equals 1 minus the learning rate.

Page 38: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

2020 2030 2040 2050 2060 2070 2080 2090 21000%

20%

40%

60%

80%

100%

High Carbon TaxCO2 Emissions from Energy vs. Ref-

erence

CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 39: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

2020 2030 2040 2050 2060 2070 2080 2090 21000%

20%

40%

60%

80%

100%

High Carbon TaxCO2 Emissions from Energy vs. Ref-

erence

CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Results most sensitive to uncertainty in initial available resources remaining (IARR).

Page 40: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Summary of Policy/Sensitivity Results – 2100(% of reference scenario result; sensitivity conditions)

Policy Lever SettingCO2

EmissionsEnergy

IntensityCarbon

Intensity

Carbon priceHigh:

100 $/TonCO2

23 - 47 % 80 - 89 % 26 - 58 %

Moderate: 50 $/TonCO2 46 - 64 % 86 - 93 % 49 - 72 %

Electricity subsidy to consumers

High: 20 $/GJ 151 - 185 % 169 - 207 % 83 - 94 %

Moderate: 10 $/GJ 113 - 132 % 113 - 140 % 91 - 100 %

Source subsidy renewables

High: 10 $/GJ 80 - 86 % 114 - 124 % 64 - 75 %

Moderate: 5 $/GJ 92 - 95 % 105 - 109 % 84 - 90 %

Coal taxHigh: 5 $/GJ 42 - 73 % 89 - 94 % 47 - 78 %

Moderate: 1 $/GJ 55 - 92 % 90 - 99 % 61 - 93 %

Energy efficiency improvement

High: 5 %/year 39 - 47 % 44 - 50 % 89 - 94 %

Moderate: 2 %/year 58 - 87 % 59 - 89 % 97 - 102 %

Page 41: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

How to Proceed• Feedback on this presentation• Set date for next review meeting• Invitations

Page 42: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Goals or principles• We want to have

• Disciplines: three groups of people • Modeling professionals of two types: Energy and Climate. Some

people are both.• Learning, communications, interface design people.• User representatives. Policy people with a science/economics

scholarly background.

• Diversity• At least 1 or 2 women • At least 1 from developing world, likely China• At least 1 from EU

• Recognition• Naki, Wigley, or Edmonds. IE, perhaps we set a goal of at

least one of the three (unless someone else nominates someone for that list)

Page 43: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Draft invite(email from John Weyant)Dear [insert name] –

I’m writing to invite you to review the En-ROADS simulation of Climate Interactive and MIT Sloan.No travel would be necessary – you would attend a small webinar, review the PPT deck and experiment with the simulation online if you want, and share your comments with me.I’m chairing the review because I think this simulation is so important – it extends their earlier C-ROADS simulation and complements the Energy Model Forum suite of models (indeed, they calibrated to the suite and included all the results in their software), aiming at policymaker use, online/app accessibility and broad education.We’ve used the simulation with great success for the last three years in a workshop with our incoming grad students here at Stanford – a two minute video of the event is here. A MIT video is here. And they’ve engaged policymakers in London and elsewhere. A short abstract is here.If you are willing to help, please reply to this email and share your availability here on a doodle poll. We are hoping to hold two webinars (you attend the more convenient one) on TKTK. Please use the doodle link to let us know which days are best for you. If necessary, we could schedule a private meeting with you.I appreciate your urgency on this. We want to be ready for the Paris COP and other engagements.Thank you for your help. I think it could make a big difference in the world.

Sincerely,John Weyant

Page 44: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Reviewers to Invite• Modeling Geeks

• Chair John Weyant (yes) [email protected] • Nebojsa (Naki) Nakicenovic, IIASA

• Or Kewyan Riahi

• Rich Richels• Ottmar Idenhoffer• Brian O’Neil• Bill Moomaw, [email protected] • Susan Solomon, MIT• Jae Edmonds

• Policy and Users• Jonathan Pershing, DOE [email protected]

• Learning, Communications, Interface• George Richardson, [email protected] • Elke Weber from Columbia (female)

• China• Zhao Xiusheng, Tsinghua, [email protected]

• John W says either Jae OR Rich Richels

Page 45: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014
Page 46: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Appendix A: Supply & Demand Curves

Page 47: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Long Term Supply - Flow Constraints

2

1.45

0.9

0 75 150 225 300 375 450Potential Energy Resource Demand (EJ/Year)

Dm

nl

Supply curve for flow constraint[RBio] : RefSupply curve for flow constraint[RNuc] : RefSupply curve for flow constraint[RHydro] : RefSupply curve for flow constraint[RRenew] : RefSupply curve for flow constraint[RNew] : Ref

Page 48: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Long Term Supply - Cum Production

2

1

0

0 2500 5000 7500 10000Cumulative production (EJ)

Dm

nl

Supply curve for depletion[RCoal] : RefSupply curve for depletion[ROil] : RefSupply curve for depletion[RGas] : RefSupply curve for depletion[RBio] : Ref

Page 49: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Short Term Supply Curve for Elec

1

0.75

0.5

0.25

0

-2 -1.40 -0.80 -0.20 0.40 1 1.60PCCR X axis (dmnl)

Dm

nl

Indicated utiliz by source Y axis : Ref

Page 50: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Short Term Supply Curve for Fuels

1

0.75

0.5

0.25

0

-2 -1.40 -0.80 -0.20 0.40 1 1.60PCCR X axis (dmnl)

Dm

nl

Indicated fuel utiliz by source Y axis[RCoal] : RefIndicated fuel utiliz by source Y axis[ROil] : RefIndicated fuel utiliz by source Y axis[RGas] : RefIndicated fuel utiliz by source Y axis[RBio] : Ref

Page 51: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Effect on Normal Retirement

4

3

2

1

0

-2 -1.40 -0.80 -0.20 0.40 1 1.60PCCR X axis (dmnl)

Dm

nl

Effect of profitability on retirement by source Y axis[NonElec] : RefEffect of profitability on retirement by source Y axis[Elec] : Ref

Page 52: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Price sensitivity of demand = 1.0

Long Term Demand Curve

2

1.5

1

.5

0

0 10 20 30 40 50 60 70 80 90 100Energy cost ($/GJ)

Dm

nl

End use energy substitition effect for demand curve : Ref

Page 53: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Effect of Energy Cost on Capital Lifetime

2

1.5

1

0.5

0

0 1 2 3 4Market price to price basis ratio (dmnl)

Dm

nl

Effect of energy cost on capital lifetime curve[Stationary] : RefEffect of energy cost on capital lifetime curve[Mobile] : Ref

Page 54: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Demand Elasticity of Fuels = 0.1(for each fuel type)

Short Term Demand Curve for Fuels

2

1.5

1

.5

0

0 1 2 3 4Ratio of market market to price basis (dmnl)

Dm

nl

Industry fuel demand to ref demand[RCoal] : RefIndustry fuel demand to ref demand[ROil] : RefIndustry fuel demand to ref demand[RGas] : RefIndustry fuel demand to ref demand[RBio] : Ref

Page 55: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Demand Elasticity of Electricity = 0.2

Short Term Demand Curve for Elec

2

1.5

1

.5

0

0 1 2 3 4Ratio of market market to price basis (dmnl)

Dm

nl

Industry demand to reference demand : Ref

Page 56: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Appendix B: More Policy/Sensitivity Results

56

Page 57: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

572020 2030 2040 2050 2060 2070 2080 2090 2100

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

High Carbon TaxEffect on Primary Energy Use

CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 58: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

582020 2030 2040 2050 2060 2070 2080 2090 2100

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

High Carbon TaxEffect on Carbon Intensity of Energy

CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 59: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Summary of Policy/Sensitivity Results – 2050(% of base run result; range across sensitivity conditions)

59

Policy Lever Setting Carbon Emissions Energy Intensity Carbon Intensity

Carbon taxHigh: 100 $/TonCO2 55 - 62 % 79 - 84 % 66 - 77 %

Moderate: 50 $/TonCO2 71 - 77 % 88 - 91 % 78 - 86 %

Electricity subsidy to consumers

High: 20 $/GJ 103 - 105 % 110 - 113 % 93 - 95 %

Moderate: 10 $/GJ 102 - 103 % 105 - 107 % 96 - 97 %

Source subsidy renewables

High: 10 $/GJ 89 - 99 % 101 - 107 % 85 - 99 %

Moderate: 5 $/GJ 96 - 100 % 100 - 103 % 94 - 99 %

Coal TaxHigh: 5 $/GJ 73 - 79 % 91 - 93 % 80 - 87 %

Moderate: 1 $/GJ 92 - 94 % 98 - 98 % 94 - 97 %

Energy efficiency improvement

High: 5 %/year 63 - 69 % 62 - 67 % 101 - 103 %

Moderate: 2 %/year 92 - 93 % 91 - 92 % 101 - 101 %

Page 60: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

60

Scenario 2050 2100

tonsCO2/EJ % of Base tonsCO2/EJ % of Base

Base 49.7 43.9

C tax

High 36.3 73% 20.1 46%

Moderate 41.3 83% 27.7 63%

Electricity subsidy

High 46.3 93% 39.5 90%

Moderate 47.8 96% 41.4 94%

Renewables subsidy

High 43.8 88% 30.3 69%

Moderate 47.3 95% 38.4 87%

Coal tax

High 42.3 85% 29.0 66%

Moderate 47.6 96% 39.4 90%

Energy efficiency improvement

High 50.6 102% 40.1 91%

Moderate 50.3 101% 43.4 99%

Policy Impacts on Carbon Intensity of Energy withDefault Parameter Estimates

Page 61: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

61

Scenario 2050 2100

EJ/Trillion $ % of Base EJ/Trillion $ % of Base

Base 6.4 4.2

C tax

High 5.2 82% 3.5 84%

Moderate 5.8 90% 3.8 91%

Electricity subsidy

High 7.1 111% 8.0 192%

Moderate 6.8 106% 5.7 136%

Renewables subsidy

High 6.7 105% 5.0 120%

Moderate 6.5 102% 4.5 107%

Coal tax

High 5.9 92% 3.8 91%

Moderate 6.3 98% 4.1 98%

Energy efficiency improvement

High 4.1 64% 2.0 49%

Moderate 5.8 91% 2.6 62%

Policy Impacts on Energy Intensity of GDP withDefault Parameter Estimates

Page 62: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

62

Scenario 2050 2100

EJ/year % of Base EJ/year % of Base

Base 1090.8 1781.0

C tax

High 895.9 82% 1502.2 84%

Moderate 984.7 90% 1614.7 91%

Electricity subsidy

High 1215.7 111% 3427.0 192%

Moderate 1160.4 106% 2425.9 136%

Renewables subsidy

High 1149.2 105% 2131.9 120%

Moderate 1114.2 102% 1903.8 107%

Coal tax

High 1003.4 92% 1624.4 91%

Moderate 1069.1 98% 1750.9 98%

Energy efficiency improvement

High 700.7 64% 870.4 49%

Moderate 996.8 91% 1100.2 62%

Policy Impacts on Energy Use withDefault Parameter Estimates

Page 63: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

63

Scenario 2050 2100

GtonsCO2/year % of Base GtonsCO2/year % of Base

Base 54.2 78.3

C tax

High 32.5 60% 30.2 39%

Moderate 40.7 75% 44.8 57%

Electricity subsidy

High 56.3 104% 135.3 173%

Moderate 55.4 102% 100.4 128%

Renewables subsidy

High 50.3 93% 64.7 83%

Moderate 52.7 97% 73.0 93%

Coal tax

High 42.4 78% 47.0 60%

Moderate 50.9 94% 69.0 88%

Energy efficiency improvement

High 35.4 65% 34.9 45%

Moderate 50.1 92% 47.8 61%

Policy Impacts on CO2 from Energy withDefault Parameter Estimates

Page 64: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

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CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

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CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 68: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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High Renewables Subsidy% Change from Reference in 2100

CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 69: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 70: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 71: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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Moderate Coal Tax% Change from Reference in 2100

CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 72: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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CNS highCNS lowDE fuels highDE fuels lowDefault RefEUCS highEUCS lowGDP growth rate highGDP growth rate lowIARR highIARR lowProfit on desired EC highProfit on desired EC lowProgress ratio highProgress ratio low

Page 73: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

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Page 74: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Appendix C: Causal Loop Diagram

Page 75: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fossil fuelprices

Learning effectfor non-FFelectricity

production costs

GDP

CO2 emissionsfrom energy

Carbon intensityof energy

Energy intensityof GDP

Energyefficienciesof end uses

Electricityshares ofend uses

Electricity price

Depletion &learning effects

for FF productioncosts

Non-FF shareof electricityproduction

Improvements inend-use energy

efficiencies

Energy prices forstationary and mobile

end uses

Non-FF electricityproduction costs

Fossil fuelproductioncapacity &utilization

Fossil fuelproduction

Non-FF electricityproduction

Fossil fueldemand

FFprice

cycles

FFlearning

anddepletion

Non-FFlearning,network,

andflow-limits

Non-FFelectricityultimatelysubstitutes

for FFs

Curtailment,Rebound,

andEfficiencyresponses

Network &flow-limit effects

Energy use

Key Model Dynamics to 2100

Page 76: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fossil fuelprices

Learning effectfor non-FFelectricity

production costs

GDP

CO2 emissionsfrom energy

Carbon intensityof energy

Energy intensityof GDP

Energyefficienciesof end uses

Electricityshares ofend uses

Electricity price

Depletion &learning effects

for FF productioncosts

Non-FF shareof electricityproduction

Improvements inend-use energy

efficiencies

Energy prices forstationary and mobile

end uses

Non-FF electricityproduction costs

Fossil fuelproductioncapacity &utilization

Fossil fuelproduction

Non-FF electricityproduction

Fossil fueldemand

FFprice

cycles

FFlearning

anddepletion

Non-FFlearning,network,

andflow-limits

Non-FFelectricityultimatelysubstitutes

for FFs

Carbon tax

Subsidy toelectricity users

Tax on coalproducers

Subsidy to renewableelectricity producers

Policies for end-useenergy efficiency

Curtailment,Rebound,

andEfficiencyresponses

Network &flow-limit effects

Energy use

Where the Levers Fit In: 5 Examples

Page 77: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

* Coal equivalent weight = 1

Coal Comparisons to EMF

1500

1125

750

375

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Coal[EMF27 BET] : RefEMF27 Ref Primary Energy Coal[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Coal[EMF27 FARM] : RefEMF27 Ref Primary Energy Coal[EMF27 GCAM] : RefEMF27 Ref Primary Energy Coal[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Coal[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Coal[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Coal[EMF27 MERGE] : RefEMF27 Ref Primary Energy Coal[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Coal[EMF27 POLES] : RefEMF27 Ref Primary Energy Coal[EMF27 REMIND] : RefEMF27 Ref Primary Energy Coal[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Coal[EMF27 WITCH] : RefEn-ROADS Primary Energy from Coal

Coal Comparisons to EMF

1500

1125

750

375

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Coal[EMF27 BET] : RefEMF27 Ref Primary Energy Coal[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Coal[EMF27 FARM] : RefEMF27 Ref Primary Energy Coal[EMF27 GCAM] : RefEMF27 Ref Primary Energy Coal[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Coal[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Coal[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Coal[EMF27 MERGE] : RefEMF27 Ref Primary Energy Coal[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Coal[EMF27 POLES] : RefEMF27 Ref Primary Energy Coal[EMF27 REMIND] : RefEMF27 Ref Primary Energy Coal[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Coal[EMF27 WITCH] : RefEn-ROADS Primary Energy from Coal

Primary Energy Equivalence by Source

Page 78: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

* Oil equivalent weight = 1

Oil Comparisons to EMF

500

375

250

125

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Oil[EMF27 BET] : RefEMF27 Ref Primary Energy Oil[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Oil[EMF27 FARM] : RefEMF27 Ref Primary Energy Oil[EMF27 GCAM] : RefEMF27 Ref Primary Energy Oil[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Oil[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Oil[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Oil[EMF27 MERGE] : RefEMF27 Ref Primary Energy Oil[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Oil[EMF27 POLES] : RefEMF27 Ref Primary Energy Oil[EMF27 REMIND] : RefEMF27 Ref Primary Energy Oil[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Oil[EMF27 WITCH] : RefEn-ROADS Primary Energy from Oil

Oil Comparisons to EMF

500

375

250

125

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Oil[EMF27 BET] : RefEMF27 Ref Primary Energy Oil[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Oil[EMF27 FARM] : RefEMF27 Ref Primary Energy Oil[EMF27 GCAM] : RefEMF27 Ref Primary Energy Oil[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Oil[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Oil[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Oil[EMF27 MERGE] : RefEMF27 Ref Primary Energy Oil[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Oil[EMF27 POLES] : RefEMF27 Ref Primary Energy Oil[EMF27 REMIND] : RefEMF27 Ref Primary Energy Oil[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Oil[EMF27 WITCH] : RefEn-ROADS Primary Energy from Oil

Primary Energy Equivalence by Source

Page 79: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

* Natural gas equivalent weight = 1

Gas Comparisons to EMF

400

300

200

100

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Gas[EMF27 BET] : RefEMF27 Ref Primary Energy Gas[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Gas[EMF27 FARM] : RefEMF27 Ref Primary Energy Gas[EMF27 GCAM] : RefEMF27 Ref Primary Energy Gas[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Gas[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Gas[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Gas[EMF27 MERGE] : RefEMF27 Ref Primary Energy Gas[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Gas[EMF27 POLES] : RefEMF27 Ref Primary Energy Gas[EMF27 REMIND] : RefEMF27 Ref Primary Energy Gas[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Gas[EMF27 WITCH] : RefEn-ROADS Primary Energy from Gas

Gas Comparisons to EMF

400

300

200

100

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Gas[EMF27 BET] : RefEMF27 Ref Primary Energy Gas[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Gas[EMF27 FARM] : RefEMF27 Ref Primary Energy Gas[EMF27 GCAM] : RefEMF27 Ref Primary Energy Gas[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Gas[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Gas[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Gas[EMF27 MERGE] : RefEMF27 Ref Primary Energy Gas[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Gas[EMF27 POLES] : RefEMF27 Ref Primary Energy Gas[EMF27 REMIND] : RefEMF27 Ref Primary Energy Gas[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Gas[EMF27 WITCH] : RefEn-ROADS Primary Energy from Gas

Primary Energy Equivalence by Source

Page 80: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

* Bio equivalent weight = 1

Bio Comparisons to EMF

300

225

150

75

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Biomass[EMF27 BET] : RefEMF27 Ref Primary Energy Biomass[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Biomass[EMF27 FARM] : RefEMF27 Ref Primary Energy Biomass[EMF27 GCAM] : RefEMF27 Ref Primary Energy Biomass[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Biomass[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Biomass[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Biomass[EMF27 MERGE] : RefEMF27 Ref Primary Energy Biomass[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Biomass[EMF27 POLES] : RefEMF27 Ref Primary Energy Biomass[EMF27 REMIND] : RefEMF27 Ref Primary Energy Biomass[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Biomass[EMF27 WITCH] : RefEn-ROADS Primary Energy from Bio

Bio Comparisons to EMF

300

225

150

75

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Primary Energy Biomass[EMF27 BET] : RefEMF27 Ref Primary Energy Biomass[EMF27 EC IAM] : RefEMF27 Ref Primary Energy Biomass[EMF27 FARM] : RefEMF27 Ref Primary Energy Biomass[EMF27 GCAM] : RefEMF27 Ref Primary Energy Biomass[EMF27 GRAPE] : RefEMF27 Ref Primary Energy Biomass[EMF27 IMACLIM] : RefEMF27 Ref Primary Energy Biomass[EMF27 IMAGE] : RefEMF27 Ref Primary Energy Biomass[EMF27 MERGE] : RefEMF27 Ref Primary Energy Biomass[EMF27 MESSAGE] : RefEMF27 Ref Primary Energy Biomass[EMF27 POLES] : RefEMF27 Ref Primary Energy Biomass[EMF27 REMIND] : RefEMF27 Ref Primary Energy Biomass[EMF27 TIAM WORLD] : RefEMF27 Ref Primary Energy Biomass[EMF27 WITCH] : RefEn-ROADS Primary Energy from Bio

Primary Energy Equivalence by Source

Page 81: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

* Nuclear equivalent weight = 1

Nuclear Comparisons to EMF

300

225

150

75

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Nuclear primary equiv[EMF27 BET] : RefEMF27 Ref Nuclear primary equiv[EMF27 EC IAM] : RefEMF27 Ref Nuclear primary equiv[EMF27 FARM] : RefEMF27 Ref Nuclear primary equiv[EMF27 GCAM] : RefEMF27 Ref Nuclear primary equiv[EMF27 GRAPE] : RefEMF27 Ref Nuclear primary equiv[EMF27 IMACLIM] : RefEMF27 Ref Nuclear primary equiv[EMF27 IMAGE] : RefEMF27 Ref Nuclear primary equiv[EMF27 MERGE] : RefEMF27 Ref Nuclear primary equiv[EMF27 MESSAGE] : RefEMF27 Ref Nuclear primary equiv[EMF27 POLES] : RefEMF27 Ref Nuclear primary equiv[EMF27 REMIND] : RefEMF27 Ref Nuclear primary equiv[EMF27 TIAM WORLD] : RefEMF27 Ref Nuclear primary equiv[EMF27 WITCH] : RefEn-ROADS Primary Energy from Nuclear

Nuclear Comparisons to EMF

300

225

150

75

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Nuclear primary equiv[EMF27 BET] : RefEMF27 Ref Nuclear primary equiv[EMF27 EC IAM] : RefEMF27 Ref Nuclear primary equiv[EMF27 FARM] : RefEMF27 Ref Nuclear primary equiv[EMF27 GCAM] : RefEMF27 Ref Nuclear primary equiv[EMF27 GRAPE] : RefEMF27 Ref Nuclear primary equiv[EMF27 IMACLIM] : RefEMF27 Ref Nuclear primary equiv[EMF27 IMAGE] : RefEMF27 Ref Nuclear primary equiv[EMF27 MERGE] : RefEMF27 Ref Nuclear primary equiv[EMF27 MESSAGE] : RefEMF27 Ref Nuclear primary equiv[EMF27 POLES] : RefEMF27 Ref Nuclear primary equiv[EMF27 REMIND] : RefEMF27 Ref Nuclear primary equiv[EMF27 TIAM WORLD] : RefEMF27 Ref Nuclear primary equiv[EMF27 WITCH] : RefEn-ROADS Primary Energy from Nuclear

Primary Energy Equivalence by Source

Page 82: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

* Renewables equivalent weight = 3

Renewables Comparisons to EMF

1000

750

500

250

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Renewable energy primary equiv[EMF27 BET] : RefEMF27 Ref Renewable energy primary equiv[EMF27 EC IAM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 FARM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 GCAM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 GRAPE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 IMACLIM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 IMAGE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 MERGE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 MESSAGE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 POLES] : RefEMF27 Ref Renewable energy primary equiv[EMF27 REMIND] : RefEMF27 Ref Renewable energy primary equiv[EMF27 TIAM WORLD] : RefEMF27 Ref Renewable energy primary equiv[EMF27 WITCH] : RefEn-ROADS Primary Energy Equiv from NonBio Renewables

Renewables Comparisons to EMF

1000

750

500

250

0

2000 2020 2040 2060 2080 2100Time (Year)

EJ/

Yea

r

EMF27 Ref Renewable energy primary equiv[EMF27 BET] : RefEMF27 Ref Renewable energy primary equiv[EMF27 EC IAM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 FARM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 GCAM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 GRAPE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 IMACLIM] : RefEMF27 Ref Renewable energy primary equiv[EMF27 IMAGE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 MERGE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 MESSAGE] : RefEMF27 Ref Renewable energy primary equiv[EMF27 POLES] : RefEMF27 Ref Renewable energy primary equiv[EMF27 REMIND] : RefEMF27 Ref Renewable energy primary equiv[EMF27 TIAM WORLD] : RefEMF27 Ref Renewable energy primary equiv[EMF27 WITCH] : RefEn-ROADS Primary Energy Equiv from NonBio Renewables

Primary Energy Equivalence by Source

Page 83: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Appendix D: Electricity Price to 2010 vs. EIA (US)…and simulated to 2100

Page 84: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

En-ROADS

Electricity Price to 2010 vs. EIA (US)

Page 85: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Where US electricity price stands globally

Page 86: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Market Price of Electricity

.2

.15

.1

.05

0

1990 2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100Time (Year)

$/kW

h

Market price of electricity in KWh : Ref

Electricity Price to 2100

Page 87: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Appendix E: Reference Scenario Stacked Graphs

Page 88: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Total Final Energy (Consumption)

900

675

450

225

0

1990 2010 2030 2050 2070 2090Time (Year)

EJ/

Yea

r

Nonelec stationary final demandNonelec mobile final demandElec stationary final demandElec mobile final demand

Energy End Use by Segment to 2100

Page 89: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Total CO2 Emissions by Carrier

80

60

40

20

0

1990 2010 2030 2050 2070 2090Time (Year)

Gto

nsC

O2/

Yea

r

CO2 emissions from energy by carrier[NonElec] : RefCO2 emissions from energy by carrier[Elec] : Ref

CO2 Emissions by End Use Carrier to 2100

Page 90: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Delivered Fuel Production

3000

2250

1500

750

0

1990 2010 2030 2050 2070 2090Time (Year)

EJ/

Yea

r

CoalOil

GasBio

Fuel Production by Source to 2100

Page 91: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Electric Production by Source

500

375

250

125

0

1990 2010 2030 2050 2070 2090Time (Year)

EJ/

Yea

r

Production for elec[RCoal] : RefProduction for elec[RCoal CCS] : RefProduction for elec[ROil] : RefProduction for elec[ROil CCS] : RefProduction for elec[RGas] : RefProduction for elec[RGas CCS] : RefProduction for elec[RBio] : RefProduction for elec[RBio CCS] : RefProduction for elec[RNuc] : RefProduction for elec[RHydro] : RefProduction for elec[RRenew] : RefProduction for elec[RNew] : Ref

Electricity Production by Source to 2100

Page 92: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Other slides

Page 93: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Price of Coal

140

70

0

1990 2020 2050 2080Time (Year)

$/tc

e

Extracted CoalDelivered Coal

Price of Oil

200

100

0

1990 2020 2050 2080Time (Year)

$/bo

e

Extracted Oil Delivered Oil

Price of Gas

12

6

0

1990 2020 2050 2080Time (Year)

$/M

CF

Extracted GasDelivered Gas

Price of Bio

60

30

0

1990 2020 2050 2080Time (Year)

$/bo

e

Extracted Bio Delivered Bio

Fossil Fuel & Biofuel Prices Simulated to 2100

Page 94: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

• Carbon tax ($/tonCO2):– Tax on delivered fuel according to its carbon intensity ($/tonCO2)

• Subsidies or taxes ($/GJ):– May apply to specified source(s) of extracted fuel, delivered fuel,

or electricity, or to electricity consumers in general

• Fractional cost reductions from technical innovations:– May apply to fuel extractors, producers of delivered fuel, or

electricity producers

• Other electricity levers: – Performance standard (TonCO2/TJ)

– Thermal efficiency improvement

– Reduction in the loss of efficiency due to CCS

• Other end-use levers:– Efficiency improvements for mobile and/or stationary end uses

Users decide

magnitude and

timing

Energy Sector Policy and Scenario Levers

Page 95: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fuel Price of Delivered Coal

300

150

0

1990 2000 2010 2020 2030 2040Time (Year)

$/tc

e

En-ROADS Delivered Coal Prices for ElecEn-ROADS Delivered Coal Prices for NonElecEIA Historic Delivered Coal Prices - ElecEIA Delivered Coal Prices - ElecEIA Delivered Coal Prices - CokeEIA Delivered Coal Prices - Commercial and IndustrialEIA Delivered Coal Prices - Other Industrial

Page 96: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fuel Price of Delivered Oil

200

100

0

1990 2000 2010 2020 2030 2040Time (Year)

$/bo

e

En-ROADS Delivered Oil PricesEIA Historic Delivered Oil Prices - GasolineEIA Historic Delivered Oil Prices - Heating OilEIA Historic Delivered Oil Prices - Distillate for ElecEIA Historic Delivered Oil Prices - Residual for ElecEIA Delivered Oil Prices - PropaneEIA Delivered Oil Prices - Motor GasolineEIA Delivered Oil Prices - Jet FuelEIA Delivered Oil Prices - DistillateEIA Delivered Oil Prices - Residual

Page 97: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Fuel Price of Delivered Gas

20

10

0

1990 2000 2010 2020 2030 2040Time (Year)

$/M

CF

En-ROADS Delivered Gas Prices for ElecEn-ROADS Delivered Gas Prices for NonElecEIA Historic Delivered Gas Prices - CommercialEIA Historic Delivered Gas Prices - ResidentialEIA Historic Delivered Gas Prices - IndustrialEIA Historic Delivered Gas Prices - ElecEIA Delivered Gas Prices - CommercialEIA Delivered Gas Prices - ResidentialEIA Delivered Gas Prices - IndustrialEIA Delivered Gas Prices - Elec

Page 98: En-ROADS Review Andrew Jones, Lori Siegel, Jack Homer, and John Sterman November 26, 2014

Oil Prices to 2040 vs. EIA

En-ROADS extracted prices for oil, coal, and gas are set equal to their historical values during 1990-2013, and are simulated starting thereafter; delivered fuel prices are simulated throughout.

Extracted (crude) oil price is projected to decline 2014-2030 because of capacity overexpansion, which itself is a response to prior high price (commodity cycle). The crude price decline is passed to refiners as lower costs, thus higher profitability, encouraging higher capacity utilization. This higher supply tends to suppress market-clearing price, but the price decline in delivered oil is mitigated by greater end use demand. Greater oil end-use and refinery utilization, in turn, prop up demand for extracted oil, leading to a new upswing in oil price starting after 2030.

Fuel Price of Extracted Oil

200

100

0

1990 2000 2010 2020 2030 2040Time (Year)

$/bo

e

En-ROADS Extracted Oil PricesEIA Extracted Oil Prices

Fuel Price of Delivered Oil

200

100

0

1990 2000 2010 2020 2030 2040Time (Year)

$/bo

e

En-ROADS Delivered Oil PricesEIA Delivered Oil Prices