The transformation sector converts primary energy, such as natural gas and crude oil, into final energy, such as electricity and refined fuels. In doing so, a substantial loss is incurred – more than a third of the total primary energy supply in 2013.
We examine the temporal evolution and regional distribution of efficiency levels in the transformation sector in an analysis covering 141 countries and 67 energy carriers between 1990 and 2013. Statistical data from the International Energy Agency’s (IEA) World Energy Balances database (updated to include a full extended global balance in July 2016) are employed to gain a high-level view of global transformation efficiency (IEA, 2016)
Efficiency is computed consistently across 12 transformation technologies. The methodology builds on those employed in previous energy efficiency bench-marking studies (Morrow III et al. 2015, Oda et al. 2012, Maruyama et al. 2009). This facilitates a comparison between transformation sector components, and enables a high degree of sectoral coverage (78% of the global primary energy supply in 2013).
When aggregating all the transformation sectors we distinguish within the IEA Energy Balance, our preliminary results indicate decline in average global transformation efficiency, from 72% in 1990 to 67.5% in 2013. However, disaggregated results for specific technologies and facilities comprise a variety of efficiency trajectories: natural gas- and coal-fuelled electricity generation plants, show increases in average global efficiency of 7% points and 2% points respectively over the analysis period, whereas for oil refineries don't show any change in efficiency.
The degrees of regional variation in efficiency also differ considerably between technologies. For example, the 90th percentile efficiency of coal-fuelled electricity plants increased by 5%, while the 10th percentile increased by 15%, over the analysis period. No such contraction in the range of efficiencies was observed for natural gas-fuelled electricity plants or other fuel transformation technologies.
Our discussion is in two parts. Firstly, we posit some explanations for the global efficiency trends observed – such as the increased penetration of electricity generation technologies leading to lower average levels of transformation efficiency. Secondly, using the case studies of electricity generation and oil refineries, we build on findings from previous research to examine the causal factors behind these technologies’ trajectories, such as the changing product slate of oil refineries. We also discuss the limitations of our core dataset, and subsequent ways in which our analysis could be improved.
References
IEA (2016), IEA World Energy Balances, IEA/OECD: Paris, [Online database] DOI:10.1787/enestats-data-en
William R. Morrow III, John Marano, Ali Hasanbeigi, Eric Masanet, Jayant Sathaye, (2015), Efficiency improvement and CO2 emission reduction potentials in the United States petroleum refining industry, Energy Policy 93, 95-105
Maruyama, Naoko, and Matthew J. Eckelman. Long-term trends of electric efficiencies in electricity generation in developing countries. Energy Policy 37.5 (2009): 1678-1686. Oda, J., Akimoto, K., Tomoda, T., Nagashima, M., Wada, K. and Sano, F., 2012. International comparisons of energy efficiency in power, steel, and cement industries. Energy Policy, 44, 118-129.
