EnergyInnovation / eps-us

Energy Policy Simulator - United States
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Change "Industrial Temperature Range" subscript to "Industrial End Use" #266

Closed jrissman closed 11 months ago

jrissman commented 1 year ago

From Jeff's 4/13/23 email:

I think you’re right, I think it does make sense to have industrial fuel shifting broken out more, and not just by temperature range. We could the industrial temperature subscript to “Industrial End Use” and expand the subscript to have these elements:

  1. Industrial boilers (of all temperatures)
  2. Low-temperature, non-boiler process heat
  3. Medium-temperature, non-boiler process heat
  4. High-temperature, non-boiler process heat
  5. Machine Drive
  6. Process Cooling
  7. Other Processes

Then, we expand (and rename) IHDbT to not just apportion energy use into temperature bands, but to apportion energy use into the buckets noted above. We would need two .csv files for this input variable, one for electricity and one for combustible fuels, since the apportionment of electricity into the buckets above is very different from the way combustible fuels are apportioned, according to MECS.

If we did that, we could treat each end use differently, depending on which technologies would be involved in electrifying that end use (or shifting it to green hydrogen). For instance, shifting fossil-based “machine drive” to electricity would invoke the costs and efficiency of electric motors, rather than electrified heating equipment, as I believe we have it today. This will improve accuracy of energy use and financial outputs.

Note that we’re not including the non-process uses in the industry sector, because they should already be covered in the buildings sector, in commercial buildings (HVAC, water heating, lighting for workers).

We might need to rearrange how the policy levers are done a bit (for instance, it sounds like we want separate levers for boiler vs. non-boiler fuel shifting) and think carefully about which levers need to allow the ability to shift to hydrogen (or even arbitrary fuels) and which can assume electricity is the new fuel. Probably only the medium- and high-temp process heating end uses need to support shifting to anything other than electricity.

For regions that don’t have the full industrial end use breakout, a modeler isn’t forced to use all of the available categories. For instance, they could just assign all the energy to a split between the three temperature categories, based on the temperature breakdown data we’ll supply in the (renamed) IHDbT file, just like they do today. (In other words, using the new categories is optional, so it shouldn’t impose any special new burdens on foreign region adaptations.)

jrissman commented 1 year ago

Policy levers in the EPS are limited to two subscripts. One way to arrange the policy levers would be:

  1. Industrial electrification by end use (subscripted by industry and by end use, omitting the medium- and high-temp non-boiler end uses, since those would be covered by the other lever)

  2. Industrial fuel shifting for med- and high-temp, non-boiler process heating (subscripted by industry and by new fuel type, electricity or hydrogen). The user setting gets applied to both medium- and high-temp processes. I don't think we need to break this out into two levers by temperature range, because we can use the "industry" lever to make these relevant distinctions. For instance, we could use more hydrogen in the "iron and steel" industry reflecting H2-DRI. For most industries, there is no sharp line between the ability or technologies to electrify medium- and high-heat processes anyway, so there is no real basis for splitting the lever up in this way, and it would be better from a user experience perspective as well.

We currently have two levers for industrial fuel shifting/electrification, so this would actually be the same number of levers, but with expanded subscript breakouts for lever 1 above, and different cost and energy data backing them up.

jrissman commented 1 year ago

In case it's not clear from the above, MECS Table 5.2 would be the source for the percentage breakouts of energy use by industrial end use, but we'd keep using AEO for the total amount of energy and apportion them by process, by industry.

In this list from MECS, we'd group the "conventional" and "CHP" boilers' fuel use, and group "electro-chemical processes" with "other process use."

mkmahajan commented 1 year ago

I'm attaching a set of detailed industry files with AEO 2023 data that are available on request from EIA but not published online. I'd received some detailed industry data when I wrote to EIA asking about some industry energy consumption discrepancies compared to the previous year's AEO, and I got an even more complete set of files when I wrote again this year.

The 'indusa.csv' file includes annual projections for energy consumption for buildings, process and assembly, and boiler/steam/cogen for each industry category and includes more industries than the published AEO. For example, these tables separately report coal mining, oil and gas extraction, and other mining. The process and assembly section includes detail on industry-specific processes, so the iron & steel sector breaks down energy consumption for BF/BOF, EAF, DRI, etc.

Also note that the zip file includes regional versions of the tables, so we have access to projections for the Northeast, Midwest, South, and West if we ever need that level of detail.

Industrial_AEO2023_results.zip

jrissman commented 1 year ago

This is great, Megan! What awesome data. I can't wait to use these to improve the industry sector.

jrissman commented 11 months ago

I fully implemented industrial processes in commits a3a330c, 0ce1910, and ce49b73. We now have industrial energy use subdivided into all industrial process categories specified in MECS, plus we further subdivide non-boiler heat into three temperature bands: low-temp (up to 165C), medium temp (165-400C), and high temp (over 400C), giving us a total of eight industrial process buckets. The new subscript is added only in necessary spots in the code, not carried through the entire industry sector, so it minimizes additional complexity and has no runtime impact.

We have two fuel switching policy levers, one for electrification and one to shift to hydrogen combustion. Electrification and hydrogen shifting can be specified separately from each other, for each industry category, and also for each industrial process. This gives us some capabilities we didn't have before. For instance, we can now electrify only boilers/steam while leaving other processes untouched, a feature that has been requested in the past.

Another benefit of separating electrification and hydrogen shifting into separate levers is that it allows these two different strategies to have separate wedges on the wedge diagram, so we can see how much of the abatement came from each strategy. This resolves issue #281, which I will close alongside this issue. Being able to divide up these wedges is important for showing how we believe direct electrification can handle a large share of industrial energy demand.

The new process data is taken in as percentages of thermal fuel and electricity use by industry and by process, rather than absolute quantities. This avoids altering the data format expected in indst/BIFUbC, and it means that U.S. values for process breakdowns can be retained for regions that don't have process-specific energy use data. (E.g., the processes done in a cement plant are likely similar no matter where that cement plant is located.) If data are available, you can of course customize the process breakdowns in the new input variable indst/BPFUbIP for each EPS region, but keeping U.S. data as a stand-in is very reasonable and will be the best solution for regions that lack process-level energy use data. (Aside from the U.S., I've only seen process-level energy use data for Europe - for instance, in JRC-IDEES.)

Finally, I implemented two new output graphs that show industrial thermal fuel use (excluding feedstocks) and electricity use by industrial process. Since we're doing all these calculations, it's really nice to show this capability to web app users. Few models give users this kind of resolution into industrial processes. Here's a snapshot of the new graphs in the BAU case. (These screenshots are from Vensim, but I also implemented them in WebAppData.)

Thermal Fuels ThermalFuels_ByProcess

Electricity Electricity_ByProcess

I'll work on the electricity sector stuff next, as I understand that's the priority, but I am glad to be able to at least fit this industry sector improvement into the next release.