A novel universal equivalent applicable to community energy markets

With the popularization of distributed energy systems among end users, the number of prosumers is increasing, and more agents now have the ability to produce energy commodities for themselves to consume or sell. The community energy market (CEM), which comprises local inhabitants and energy‐related organizations, is shaped by the energy trade among different stakeholders within the community. In this case, a credible measure of value to judge the different types of energy is necessary to analyse the performance of the energy conversion system and determine the price of energy commodities. In this discussion, a typical multi‐energy system in a CEM is proposed as a targeted case, and physical products, energy, exergy, emergy, and currency serving as universal equivalents are compared and discussed in a case study. The results show that the superiority of low‐grade heat energy in the design of the energy system of prosumers and in terms of market value is clear. The feasibility of hot/chilled water, which is selected as a universal equivalent for multi‐energy system design and energy merchandise trade in the CEM, is emphasized. This research discusses the feasibility of low‐grade heat energy as a universal equivalent in a CEM based on house heating and cooling, which is a preliminary exploration for a proper universal equivalent in CEMs.     

Opportunities and barriers for international bioenergy trade

Recently, the international trade of various bioenergy commodities has grown rapidly, yet this growth is also hampered by some barriers. The aim of this paper is to obtain an overview of what market actors currently perceive as major opportunities and barriers for the development of international bioenergy trade. The work focuses on three bioenergy commodities: bioethanol, biodiesel and wood pellets. Data were collected through an internet-based questionnaire. The majority of the 141 respondents had an industrial background. Geographically, two-thirds were from (mainly Western) Europe, with other minor contributions from all other continents. Results show that import tariffs and the implementation of sustainability certification systems are perceived as (potentially) major barriers for the trade of bioethanol and biodiesel, while logistics are seen mainly as an obstacle for wood pellets. Development of technical standards was deemed more as an opportunity than a barrier for all commodities. Most important drivers were high fossil fuel prices and climate change mitigation policies. Concluding, to overcome some of the barriers, specific actions will be required by market parties and policy makers. Import tariffs for biofuels could be reduced or abolished, linked to multinational trade agreements and harmonization (including provisions on technical standards and sustainability requirements).     

Energy perspective of Sino-US trade imbalance in global supply chains

The unprecedented global supply chain fragmentation brings an ever-increasing trade imbalance in terms of monetary flows between China and the United States. Associated with the bilateral trade imbalance is the reallocation of resources utilization and environmental stress. In this regard, this study presents an embodied energy model to investigate impacts of Sino-US trade imbalance on global energy use during 2000–2014. Distinguished from previous studies that only evaluate the Sino-US trade based on specific bilateral perspective, this study probes into overall impacts of the Sino-US trade on global primary energy use pattern from the perspective of global supply chains for the first time. A boost to eastbound trade and distinct export industrial structures fuel the unprecedented growth of Sino-US embodied energy trade imbalance, accounting for more than half of the total energy transfers embodied in Sino-US trade. Such imbalance firstly increases sharply from 1956.0 PJ in 2000 to 5265.3 PJ in 2006, followed by a short term decrease to hit a low point at 3267.7 PJ in 2009 because of financial crisis and then a gradual resuscitation with a slower pace in the following years. The exported energy embodied in manufacturing products dominates eastbound flows, whereas energy embodied in agricultural products, technology intensive products and primary energy commodities constitute majority of westbound flows. Due to the dispersed production process in global value chains, more than half of primary energy use embodied in the bilateral trade is geographically exploited in other economies along the supply chain (i.e., Europe, the Middle East and South Asia). Furthermore, security of energy supply is evaluated for the two economies. The results can help predict potential influences of trade conflicts on global energy extraction, illustrating policy implications to make Sino-US trade in line with global energy conservation goals. Considering Sino-US trade's impacts along complex supply chains, distinctive domestic energy conservation measures should give way to global collective and inclusive governance.     

Examining the resilience of national energy systems: Measurements of diversity in production-based and consumption-based electricity in the globalization of trade networks

Energy is a critical component of achieving sustainable development. In addition to the three aspects of promoting access, renewables, and efficiency, the dimension of resilience in energy systems should also considered. The implementation of resilient energy systems requires a quantitative understanding of the socio-economic practices underlying such systems. Specifically, in line with the increasing globalization of trade, there remains a critical knowledge gap on the link between embodied energy in the production and consumption of traded goods. To bridge this knowledge gap, we investigate the resilience of global energy systems through an examination of a diversity measure of global embodied electricity trade based on multi-regional input-output (MRIO) networks. The significance of this research lies in its ability to utilize high resolution MRIO data sets in assessing the resilience of national energy systems. This research indicates that secure and responsible consumption requires the diversification of not only energy generation but also energy imports. This research will lay the ground for further research in the governance of resilience in global energy networks.     

Global warming agreements,international trade and energy/carbon embodiments: an input–output approach to the Italian case

In the Kyoto Protocol the absence of Green House Gases (GHGs) commitments of developing countries (non-Annex I) and the more flexible terms of implementation which are allowed to countries shifting toward a market economy (transition economies) naturally lead to the absence or to less constraining national measures and policies of reduction of the GHGs emissions which, in turn, may determine a comparative advantage in the production of the highest energy/carbon intensive commodities for these countries. These arguments are valid also considering the future implementation of the European Emission Allowance Trading Scheme (EATS). Thus, developing countries may become a haven for the production of not environmental-friendly commodities; in this case, the so-called Pollution Haven Hypothesis, stating that due to freer international trade the comparative advantage may change the economic structure and consequently the trade patterns of the countries linked by trade relationships, could occur. This would lead to the increase of the transfers of energy and carbon embodied in traded commodities from developing countries and transition economies toward Kyoto or EATS constrained countries.     

Mapping global fuel cell vehicle industry chain and assessing potential supply risks

Fuel cell vehicles (FCVs) have the potential to contribute significantly to improving air quality and addressing climate concerns in the future. However, due to the highly dynamic technology and manufacturing developments, there is a lack of understanding of the state-of-the-art global FCV industry chain and associated supply risks. This study fills such a research gap by mapping global FCV industry chain during the period 2017–2019, and assessing the supply risks of relevant key commodities. The results show that significant supply risks existed in global FCV industry chain, especially in upstream commodities like platinum and gas diffusion layer (GDL). The combined indicator of Herfindahl-Hirschman Index and Worldwide Governance-Indicator (HHI-WGI) is used to quantify the supply risks, showing that HHI-WGI of platinum is on the highest level. On the national level, supply risks are identified primarily in platinum for Japan, in vehicles for the United States, and along the entire industry chain for China. Network analysis is conducted to visualize and analyze how countries, companies and commodities are connected, showing that the highest supply risks were identified in GDLs. It is recommended that country-specific measures should be taken to mitigate supply risks, including building up national stocks of critical materials, investing overseas, enhancing the guidance over industry policies, and stepping up infrastructure construction.     

对中国石油在巴西发展生物能源的思考

本文通过对巴西生物能源市场现状进行分析和机会筛选,对标国际石油公司在巴西开展生物能源的成绩和进展,利用奥利模型分析了中国石油投资巴西生物能源市场的投资优势,提出开展生物能源和常规能源一体化方案评估、建立生物能源合资公司、发挥中国石油一体化优势及做好本地化经营等相关建议。     

Accounting emergy flows to determine the best production model of a coffee plantation

Cerrado, a savannah region, is Brazil's second largest ecosystem after the Amazon rainforest and is also threatened with imminent destruction. In the present study emergy synthesis was applied to assess the environmental performance of a coffee farm located in Coromandel, Minas Gerais, in the Brazilian Cerrado. The effects of land use on sustainability were evaluated by comparing the emergy indices along ten years in order to assess the energy flows driving the production process, and to determine the best production model combining productivity and environmental performance. The emergy indices are presented as a function of the annual crop. Results show that Santo Inácio farm should produce approximately 20 bags of green coffee per hectare to accomplish its best performance regarding both the production efficiency and the environment. The evaluation of coffee trade complements those obtained by contrasting productivity and environmental performance, and despite of the market prices variation, the optimum interval for Santo Inácio's farm is between 10 and 25 coffee bags/ha.     

Towards a sustainably certifiable futures contract for biofuels

How are biofuels to be certified as produced in a sustainable and responsible fashion? In the global debate over this issue, one party to the proceedings seems rarely to be mentioned—namely the commodities exchanges through which a global biofuels market is being created. In this contribution, I propose a solution to the problem of sustainability certification through a biofuels futures contract equipped with ‘proof of origin’ documentation. The proposal does not call for any radical break with current practice, extending existing certification procedures with a requirement for the vendor to provide documentation, probably in barcoded form, of the history of the biofuel offered for sale, including plantation and biorefinery where the biofuel was produced and subsequent blendings it may have undergone. The proposal is thus compatible with the blending practices of large global traders, whose activities are the source of the difficulties of other approaches to certification. It is argued that if such a sustainable futures contract for bioethanol (in the first instance) were to be introduced, then it would likely trade at a premium and become the primary vehicle for North–South trade in biofuels.     

The oil-slick trade: An analysis of embodied crude oil in China's trade and consumption

China has become the world's second largest crude oil importer and consumer. The international fragmentation of production has had an important impact on China's oil consumption, which cannot be assessed adequately through only checking China's trade data of crude oil. Based on a global multi-regional input–output model, we examine crude oil embodied in China's trade during 1995–2011. The results show that approximately one fifth to one third of imported oil in China is re-exported through producing commodities and services for satisfying final consumption outside China. We show that China is playing a role as a transit hub of crude oil from extraction locations to global consumers, particularly those in advanced countries. Foreign consumers actually benefit from China's global seeking of natural resources, a fact that is usually overlooked by critics of China's oil thirst. In addition, we show that China's oil import dependence assessed from the consumption side is greater than when assessed from the production side, shedding new light on the discussion of energy security in China.     

The sustainability of sugarcane-ethanol systems in Guatemala: Land, labour and law

Since 2010, Guatemala has been exporting ethanol, principally to European markets. This means that Guatemalan biofuel has been certified sustainable, although this is deeply contested with NGO reports drawing attention to the negative impacts of ‘agrofuels’, particularly for marginalised communities. Guatemala therefore provides an excellent case study for examining not only the impacts of increased global demand for biofuels, but also whether sustainability, as conceptualised by the European Union's Renewable Energy Directive, can capture those issues that are salient to the Guatemalan context. Drawing on more than eighty qualitative, in-depth interviews, this paper finds that the bloc's governance framework for biofuels fails to capture many of the issues that matter most to local people in Guatemala, namely land access, trade unions and compliance with the law. This paper argues that the current framework therefore runs the risk of exacerbating the plight of Guatemala's already marginalised rural communities.     

Economics of electric energy storage for energy arbitrage and regulation in New York

Unlike markets for storable commodities, electricity markets depend on the real-time balance of supply and demand. Although much of the present-day grid operates effectively without storage, cost-effective ways of storing electrical energy can help make the grid more efficient and reliable. We investigate the economics of two emerging electric energy storage (EES) technologies: sodium sulfur batteries and flywheel energy storage systems in New York state's electricity market. The analysis indicates that there is a strong economic case for EES installations in the New York City region for applications such as energy arbitrage, and that significant opportunities exist throughout New York state for regulation services. Benefits from deferral of system upgrades may be important in the decision to deploy EES. Market barriers currently make it difficult for energy-limited EES such as flywheels to receive revenue for voltage regulation. Charging efficiency is more important to the economics of EES in a competitive electricity market than has generally been recognized.     

Future bio-energy potential under various natural constraints

Potentials for bio-energy have been estimated earlier on the basis of estimates of potentially available land, excluding certain types of land use or land cover (land required for food production and forests). In this paper, we explore how such estimates may be influenced by other factors such as land degradation, water scarcity and biodiversity concerns. Our analysis indicates that of the original bio-energy potential estimate of 150, 80 EJ occurs in areas classified as from mild to severe land degradation, water stress, or with high biodiversity value. Yield estimates were also found to have a significant impact on potential estimates. A further 12.5% increase in global yields would lead to an increase in bio-energy potential of about 50%. Changes in bio-energy potential are shown to have a direct impact on bio-energy use in the energy model TIMER, although the relevant factor is the bio-energy potential at different cost levels and not the overall potential.     

Investigation of China's bio-energy industry development modes based on a SWOT–PEST model

Today more than ever before, the issues of energy shortage, global warming and climate change bound with greenhouse effect are dominating the international agenda, causing an increased interest in the renewable and alternative energy sector. With the development of the Chinese economy and scientific technology, the contradiction between energy, environment and economic growth has become ever-increasingly evident. Bio-energy, as an emerging and promising energy type, is of pretty importance for China's energy development from the strategic perspective. In this paper, the strategic analysis tools stemming from the SWOT (Strengths, Weaknesses, Opportunities, and Threats)–PEST (political, economic, social and technological) model have been adopted to explore the development modes of China's bio-energy industry. Afterwards, on the basis of the mode analysis, several corresponding recommendations have been put forward in an attempt to achieve the rapid and sound development of China's bio-energy industry.     

Comparing centralized and decentralized bio-energy systems in rural China

Under the dual pressures of an energy crisis and rising greenhouse gas emissions, biomass energy development and utilisation has become part of the national energy strategy in China. The last decade has witnessed a strong promotion of both centralised and decentralised bio-energy systems in rural China. The government seems to have a strong preference for centralised (village-based) bio-energy systems in recent years. However, these government-driven systems have not worked without difficulties, particularly regarding economic and technological viability and maintenance. Studies on the advantages and disadvantages of decentralised and centralised bio-energy systems are rare. This study aims to shed light on the performances of these two systems in terms of social, economic and environmental effects. Through interviewing local officials and village leaders and surveying farmers in 12 villages in Shandong Province, it was found that bio-energy systems should be selected based on the local circumstances. The diversity of the local natural, economic and social situations determines the size, place, technology and organisational model of the bio-energy system.     

Innovation and technology transfer through global value chains: Evidence from China's PV industry

China's success as a rapid innovation follower in the infant Photovoltaic (PV) industry surprised many observers. This paper explores how China inserted itself into global clean energy innovation systems by examining the case of the solar PV industry. The paper decomposes the global PV industrial value chain, and determines the main factors shaping PV technology transfer and diffusion. Chinese firms first entered PV module manufacturing through technology acquisition, and then gradually built their global competitiveness by utilizing a vertical integration strategy within segments of the industry as well as the broader PV value chain. The main drivers for PV technology transfer from the global innovation system to China are global market formation policy, international mobilization of talent, the flexibility of manufacturing in China, and belated policy incentives from China's government. The development trajectory of the PV industry in China indicates that innovation in cleaner energy technologies can occur through both global and national innovation processes, and knowledge exchange along the global PV value chain.     

LNG is linking regional natural gas markets: Evidence from the gravity model

Evidence exists that global natural gas markets have become more integrated over time. One possible explanation for this increased level of integration is that increased liquefied natural gas trade has increased the opportunity for price arbitrage by decreasing transport costs. If this explanation is true, then the natural gas market should become relatively more integrated because countries separated by large distances would be more willing to trade with each other. We employ a gravity model to test whether trade in liquefied natural gas has helped to de-regionalize the total natural gas market, using trade in the compressed natural gas market as a comparison benchmark. The results indicate that liquefied natural gas is indeed a global commodity, whereas the compressed natural gas markets are more regional. Importantly, we find that trade in liquefied natural gas has de-regionalized the total natural gas market.     

External governance and the EU policy for sustainable biofuels,the case of Mozambique

Growing demand for transport biofuels in the EU is driving an expansion of the industry in developing countries. Large-scale production of energy crops for biofuel, if mismanaged, could cause detrimental environmental and social impacts. The aim of this study is to examine whether the newly adopted EU Directive 2009/28/EC and its sustainability certification system can effectively ensure sustainable production of biofuels outside the EU. Mozambique, a least developed country with biofuels ambitions, is selected as empirical case. The effectiveness of the EU policy in analysed employing ideal models of external governance (hierarchical, market and network governance) as analytical framework. The findings show that the EU attempts to impose its rules and values on sustainable biofuels using its leverage through trade. The market approach adopted by the EU is expected to produce only unstable (subject to abrupt changes of market prices and demand) and thin (limited to climate and biodiversity issues) policy results. Stronger emphasis on a network oriented approach based on substantial involvement of foreign actors, and on international policy legitimacy is suggested as a way forward.     

Hydrogen strategy in decarbonization era: Egypt as a case study

The quest for a low-carbon energy transition has grown in recent years as concerns about the effects of climate change have grown. In this context, several governments around the world are concerned about hydrogen's possible role in a decarbonized energy system. As a result, this paper will provide a high-level overview of the hydrogen value chain, as well as an analysis of current and emerging trends in the global hydrogen market, particularly in the Middle East and North Africa (MENA), which are considered the cornerstone of the current global energy system traditional fossil fuel. Egypt, as a case study, could instruct other emerging countries in general, and natural gas suppliers in particular, how to maximize gains by switching from current imports to blue hydrogen made from natural gas. Policymakers who are responsible for Egypt's national hydrogen strategy should focus on global energy insights, international experience, and natural gas-sourced blue hydrogen as a step to renewables-sourced green hydrogen.