Viet Nam Energy Outlook Report 2023 shows that the country is working steadfastly to reach net zero by 2050. Simultaneously, the country faces the challenge of a fast-growing economy and a huge increase in electricity demand.
One of the keys to this successful development is strategic energy planning. Subsequently, the Vietnamese government uses the TIMES-Vietnam energy systems model and the Balmorel-Vietnam for decision-making.
We have supported the development of the TIMES-Vietnam model for almost 10 years through our engagements in the Partnership Programme between Viet Nam and Denmark, headed by the Danish Energy Agency.
Regarding the Outlook Report, we have developed scenarios for the analyses. We have also assisted the Vietnamese authorities in building up their planning capacities. To this end, we have updated the technology catalog. The catalog has been integrated into the TIMES-VNM model. It includes technologies not yet being used in Viet Nam.
Some of the key takeaways of the Viet Nam Energy Outlook Report are
• The green energy transition is cost-efficient for Viet Nam • A steady increase in renewable energy investments is required from today • Energy efficiency is a cost-effective option to reach the net-zero target
The past year has been very active and productive as we show in our Newsletter Winter 2024. We have created the TIMES-KUWAIT model and further developed the TIMES-Vietnam, TIMES-Jordan, and TIMES-NEU models. The latter covers Northern Europe. We have also embarked on several research projects. One focuses on PtX, another on modelling the AFOLU sector. A third project is focusing on supporting local authorities to speed up the green transition.
Inspired by community
We were pleased to attend the Semi-annual ETSAP meeting in Turin in November. Our consultant Till Ben Brahim made a presentation on the possibility for the Nordic countries, especially Denmark, to become a green hub for the export of green hydrogen and electricity to Europe. He showed scenarios generated by the TIMES-NEU model that we have used to analyze future energy markets in the Nordics.
Furthermore, we had the opportunity to network and agree with colleagues from Italy, Belgium, and the Nordic countries to team up regularly and share results from our work.
Creating the TIMES-KUWAIT model
We have contributed to the first steps of strategic energy planning in Kuwait as consultants on the project Developing Kuwait’s Long-Term Climate Pathways. In the first place, we developed a database for energy and GHG emissions. Next, we created the TIMES-KUWAIT model and generated different scenarios including rapid expansion of the renewable fuel market and reduced exports.
The government of Kuwait has pledged to reach net-zero emissions in the oil and gas sector by 2050 and by 2060 for the whole country.
Best location of PtXplants
As part of MissionGreenFuels, EML is collaborating with 13 partners on the PtX Sector Coupling and Life Cycle Assessment Project. The expected result is to create better ways to determine optimal ways of integrating PtX into the green transition. To this end, we are developing and updating the TIMES-NEU model.
The study aims to identify the policy instruments needed to accelerate the uptake of hydrogen fuel cells for the shipping industries in Denmark, Norway, and Sweden.
Hydrogen fuel cells are promising for reducing emissions from shipping. However, their adoption is limited by high costs, lack of regulations, and lack of infrastructure. This is why there is a need for policies that spur investments in hydrogen fuel cells.
The three policy packages
Together with our fellow researchers, we tested three policy packages with different degrees of ambition (low, medium, and high). Our findings indicated that the proposed taxes on CO2 emissions and fossil fuels can help drive the transition away from fossil fuels. Meanwhile, the complete transition requires a ban on the use of fossil fuels.
The three policy packages were formulated based on discussions during workshops with key stakeholders from Nordic Shipping. During the workshops, we also learned that the participants are paying high attention to a “chicken and egg” paradox: Without the demand for green hydrogen, no supply, and vice versa. This has not been reflected in previous studies.
Correspondingly, a coordinated regional approach and cross-sector and cross-industry collaboration are needed. Otherwise, we cannot overcome the paradox and help balance the supply and demand for Nordic shipping
Modelling
MODEL
We used the TIMES-NEU model, an economic model generator for energy systems, to evaluate the three different policy packages. EML has developed the TIMES-NEU model.
SCENARIOS
Estimated total fuel consumption in PJ/year; CO2 emissions by fuel in thousand tons of CO2 emissions/year; revenue from the tax on fossil fuels in million Euros/year; ferry segment fuel consumption in PJ/year.
RESULTS
The main finding was that policies are needed to spur investments. Meanwhile, it’s necessary to ban fossil fuels to complete the green transition of shipping.
Other scenarios included in the study show estimated CAPEX and OPEX in million Euros/year, estimated CAPEX and OPEX for the ferry segment in million, and estimated CAPEX and OPEX of the mandate of ferries to use hydrogen in comparison to the policy packages in million Euros/year.
Energy Modelling Lab has contributed to the background study “The Value of Early Action on Energy Efficiency”. The study is focusing on buildings and industries. We identified key energy efficiency messages that we presented at the IEA Energy Efficiency Conference 2022 (see full presentation below). The conference took place in the Danish city of Sonderborg.
In collaboration with our partners, we examined the importance of early action on energy efficiency. We considered the costs of delayed progress. Furthermore, we looked into the benefits of achieving energy efficiency milestones on the way to reaching net zero emissions by 2050. The study was contracted by the International Energy Agency and financed by Danfoss.
Key findings on early action
Early action matters. A low energy efficiency pathway would increase final energy consumption by 39%. CO2 emissions increase by 16% if action is delayed by 10 years.
Energy efficiency is the most effective measure to quickly improve energy security and lower electricity prices.
Reduced air pollution in a global net zero emissions scenario can reduce the cost of global health impacts by almost €500 bn in 2030.
Water heaters provide the biggest shifting potential and thereby CO2 emission reductions. Due to high savings and load-shifting potential, water heaters should be one of the first products to be digitized.
In process industries maintenance and simple upgrade of process plants can save 5 to 10% with very short payback time.
The use of electromagnetic sources for process heat is in an early stage but holds promising potential for saving energy with a factor of 10 or more.
We used the IEA’s Net Zero Emissions by 2050 Scenario as a central focus and reference case for the analysis. Correspondingly, we focused on the implications and impacts of action within this decade, in all major energy-using regions globally.
Scenario analyses
We analyzed scenarios of low energy efficiency and high energy efficiency and estimated the accumulated final energy consumption, CO2 emissions, and air pollution.
Results
We presented the key findings at the International Energy Agency (IEA) Energy Efficiency Conference 2022 in the Danish city of Sønderborg.
Energy Modelling Lab has analyzed the future energy market in Northern Europe that will develop under the green transition. The analysis was an assignment from COWI. It has been used as a reference in the report Roadmap to a Future, Danish hydrogen infrastructure, published by the CIP Foundation in May 2023.
The analysis focuses on Denmark, Norway, Sweden, Germany, Poland, Holland, Belgium, and UK. It probes the potential future markets of energy and fuels including PtX fuels from now until 2050.
Based on data from the Danish Energy Agency, the Danish production of electricity is expected to increase by almost 900 % by 2050. The increase is primarily due to offshore wind parks. It’s assumed that the offshore wind parks will be established in connection with planned “energy islands”; two to three in the North Sea and one in the Baltic Sea. Also, there are plans to establish electrolysis facilities and we assume they will be established on the energy islands.
Domestic demand
Domestic electricity demand is expected to remain almost constant due to energy-saving measures. But the overall expected increase could be about sevenfold from now until 2050, due to the planned expansion of PtX facilities. The bulk of the potential electricity production would thus be used for the production of green hydrogen for export. Denmark could potentially produce one-third of the total green hydrogen produced in the area, that our analysis covers.
The demand for hydrogen in Northern Europe is estimated to grow dramatically. According to the prognosis in the analysis, Holland, Belgium, and Germany will be the main purchasers. The estimated value of the potential, Danish green hydrogen export is 100 billion DKK pr. year.
Germany or Sweden
The prognosis is based on the assumption, that Germany’s capacity for hydrogen production will remain rather limited. This assumption relies on calculations showing that Danish offshore wind parks will produce slightly cheaper electricity than German facilities. Meanwhile, the likelihood that Germany will establish a large-scale production remains high.
An alternative scenario not included in the published analysis showed that Sweden could become the main purchaser of Danish-produced hydrogen by 2050. This is mainly due to estimates showing that production costs in Sweden are higher than in Denmark.
Energy Modelling Labs has updated the TIMES energy system model for the analysis. We developed it further to cover Northern Europe which resulted in developing the TIMES-NEU. The TIMES model is internationally recognized and developed by an IEA working group.
MODELLING
Energy Modelling Lab has updated the Open Nordic TIMES model (ON-TIMES) and developed it further to the Northern Europe TIMES model (TIMES-NEU).
SCENARIO ANALYSIS
Energy Modelling Lab has probed on the future energy market that will develop under the Green Deal on climate neutrality by 2050.
RESULTS
Results and scenarios are collected in the report mentioned above.
During the past half year we have developed new features for the TIMES model framework, dived into PtX and biogas, and begun the development of a new clean model structure.
Inspired by community
The ETSAP meetup for TIMES-modellers in New York was a great inspiration. During the conference we learn of a UN-database that contains data for all countries of the world. So our new dream is to use the database to automate the model creation and build TIMES-models for all countries in the world.
Read more about the vision in the full newsletter below.
New biogas-module
Biogas will play an increasing role in the Danish energy system. Therefore we have developed a new biogas module for the Danish Energy Agency, to ensure a detailed representation of biogas in their future mode work.
To analyse the demand and supply of green hydrogen and other synthetic fuels, we have developed a new model of Northern Europe.
The model is a combined TIMES-model that includes Denmark, Sweden, Norway, Germany, and Poland. The model also includes external trade-links to UK, Belgium, and the Netherlands.
We hope to publish some results from the analysis soon.
If you want to read the full newsletter, you can find it here:
What will the future of district heating look like when wind and solar dominate the electricity market, as expected within the coming decade?
In this analysis for Dansk Fjernvarme, Energy Modelling Lab has dived into the details of the future of district heating in Denmark. We have explored where the heat will come from, and whether our energy system will get too vulnerable without the thermal powerplants.
Our results show that the thermal power and district heating plants will close down faster than the Danish Energy Agency projected.
Key findings
In the future district heating will primarily come from large-scale heat pumps and waste heat from PtX plants and data centers.
The thermal power and heat plants are being phased out faster than the Danish Energy Agency projects.
An energy system with a low diversity comes with an increased risk of failure.
MODELLING Energy Modelling Lab has updated the Danish TIMES model (TIMES-DK) to include 23 individual district heating areas and four aggregated areas.
SCENARIO ANALYSIS Energy Modelling Lab has investigated the consequences of an upper limit in biomass used for power and heat and an upper limit in the number of PtX plants.
REPORT All results and scenarios are collected in the report above.
In this ETSAP Newsletter Spring 2022, we share the activities that we have carried out as an active member of the modelling community. As part of the ETSAP community, Energy Modelling Lab is developing the TIMES model framework, using it for a range of projects, and sharing our experiences within the network.
PROJECTS AROUND THE GLOBE
Energy Modelling Lab has worked on models for countries around the world.
In the Nordic countries, we have both investigated paths to a climate-neutral future and dived into the shipping industry, to investigate which fuels will power the future sea transport.
In Vietnam, we have supported the local modelling team, and in Azerbaijan, we have built a full-country model from scratch, facilitated workshops with the key stakeholders with the key stakeholder in energy planning in the country, and trained local modelers to run the model.
New features in TIMES-DK
Inspired by the discussions at the ETSAP meeting in Oslo 2021, we have added energy storage in TIMES-DK.
Additionally, we have added different ancillary services to the model, such as balancing the electricity grid when the demand is greater than the supply.
Giving back to the community
We are always happy to participate in the ETSAP-community activities. After a long period of webinars, it was a relief to join the biannual ETSAP meeting in Oslo in November 2021.
Over the past year, we have also expanded the modelling community by training two new employees in the TIMES-model framework. Other than that we have supported a bachelor student from the University of Southern Denmark in a project on energy islands, three students from the Technical University of Denmark in a project on German hydrogen demand, and a Swedish PhD student on a new model of Gothenburg.
The community is growing, one modeler at a time.
If you want to read the full newsletter, you can find it here:
The Vietnamese economy is growing, and so is the demand for energy. As the country moves forward new investments in clean energy and infrastructure are highly needed. Energy Modelling Lab has developed scenarios to reach the target of net zero by 2050 in Vietnam.
The power generation and storage capacity should be 30 times higher than the current capacity.
Electricity should primarily come from solar power combined with batteries.
Power transmission should be increased by 40% compared to the present capacity.
Download the Energy Outlook Report 2021 for Vietnam
The report is written by the Electricity and Renewable Energy Authority in Vietnam (EREA) along with the Danish Energy Agency. Energy Modelling Lab has contributed to both the analysis and the report.
We participated in a research project exploring the role of fossil gas in the Nordics. The challenge of reducing the dependency on fossil gas differs between the Nordic countries. Therefore each country has its own set of challenges to solve.
Norway exports while Sweden and Finland import gas
Denmark is connected to central Europe and receives the gas mix in the grid from both Russia and Norway. (The Danish gas production is temporarily low due to maintenance of the Tyra Field).
Finland gets gas directly from Russia and through Estonia.
Norway exports a large amount of gas mainly to central Europe and partly to the Danish grid.
Sweden gets gas from the European grid through Denmark.
Fossil gas use differs between the nordic countries
In Denmark around 350,000 buildings are heated by gas, and switching to district heating or heat pumps is a major task in the years to come.
Finland primarily uses gas for electricity and heat production and industry, especially pulp and paper and iron, and steel production consumes large amounts of gas. Switching to green energy sources in these processes is the primary task for Finland.
Norway does not have a high domestic gas use in the society as such, but fossil fuel extraction uses a large amount of gas today. Electrification of energy production can reduce fossil gas consumption substantially.
Sweden mainly uses gas for non-energy purposes such as fertilizer and plastics, but also for process heat in iron and steel production, chemical industry, and pulp and paper production.
If you want to dive into more details on the role of fossil gas in the Nordic countries, you can find the full analysis here: