Economy & Energy
Year XV-No 80
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Due to its continental dimensions, each Brazilian state has peculiar characteristics regarding economic, social and energy use sectors which makes them different from each other.
The article shows these characteristics, focusing mainly on analyzes and comparison of energy indexes related to socio-economy and particles emissions of this Federation Unit with that of Brazil and of the other states. The ranking concerning 42 indexes of the Amazon state and of the other states is presented.
2. Demographic and Economic Characteristics
Amazonas (AM) is a Brazilian state situated in the North of the country and it is the largest one in territory with an area of 1,570,745.68 km², and it is the ninth largest subdivision in the world; it is larger than France, Spain, Sweden and Greece taken together. It would be the eighth largest country of the world in territorial area, slightly larger than Mongolia. It is larger than the Brazilian Northeast region area with its nine states.
Its limits are: Pará state in the East, Mato Grosso in the Southeast, Rondônia and Acre in the South and Southwest, Roraima in the North, besides Venezuela, Colombia and Peru in the North, Northwest and West, respectively.
The economy is strongly based on industry where electro-electronic equipment, cars and oil and natural gas are the main areas. The state has the second Gross Domestic Product (GDP) of the North region (30% of the GDP in the region) and slightly 80% is concentrated on the capital Manaus. The state has the highest Human Development Index (HDI) of the region, even with that of Amapá.
The primary sector with about 7% of the GDP is less relevant in the state economy, and practically all products of the temporary farming are for internal use. In the foresting area the state produces açaí, castanha-do-pará (also called castanha-do-brasil or castanha-da-amazônia) and umbu, besides coagulated latex and oleaginous products. It also produces fibers such as buriti and piaçava. It has the second largest production of açaí and it is outdone only by the state of Pará. Exports of fish such as surubins, piramutabas and ornamental ones are relevant in the primary sector.
The Metropolitan Region of Manaus hosts almost all production of the secondary sector of the state (near to 42% of the GDP) in the Manaus Free-Trade Zone (MFZ), the main industrial center of the Brazilian North region. It was established by the Brazilian military regime aiming at creating an economic base in the West Amazon area, promoting a better productive and social integration of this region and guaranteeing the national sovereignty of its frontiers.
The biodiversity of the Amazon Region is unique and the richest in the world. Its forests concentrate 60% of all forms of life of the planet but it is presumed that only 30% of it is known to science. It is estimated that there are about one million animal and vegetal species, including more than 2,000 types of fish, 2,500 types of birds, 3,500 types of trees with more than 30 cm of diameter and 300 species of reptiles, snakes and lizards. Of the 483 species of mammals existing in Brazil, 324 live in the Amazon region (67%); of the 141 species of bats, 125 fly in the region, With 30 million species, insects form the largest living group on Earth, not considering bacteria and microorganisms. In the Amazon region there are one third of them. This biodiversity is one strategic reserve for survival of the human species considering that it has a considerable reserve of food-plants as well as medicinal plants.
With these special characteristics, recreational and scientific tourism are prominent in the services sector (tertiary) of the state, and this is responsible for 51% of the GDP, an index smaller than that for Brazil, namely 68%.
Argentina is a big importer of AM products that corresponds to more than one quarter of the state’s exports. Among the main products we can mention motorcycles and ingredients for preparing beverages.
3. State Ranking:
It is a paradox that AM, with the richest biodiversity in the world, is the Brazilian state having the highest CO2 emission index per consumed energy. In fact, the 2.24 emission index tCO2/tep is much higher than the average Brazilian value of 1.54 tCO2/tep and it is close to the world index, namely 2.38 tCO2/tep.
The relative high emissions are a result of the large amount of fossil fuels in the Primary Energy Supply (PES) of 82.5%, a value that puts the state in the last place in the national ranking – high aggression to the environment – and that surpasses the Brazilian index, namely 56%. The electricity supply, almost totally from fuel oil and gas, is the main reason for the high level of fossil fuels.
In 2012, AM emitted 10.2 million tCO2, corresponding to 2.3 % of the national emissions, two times the Paraguayan emissions and one and a half times that of Uruguay. The PES was 4.5 million toe of energy, 1.6% of the national demand and equal to the total consumption of Paraguay with 6.6 million inhabitants.
Due to a well developed industry with high manpower index, AM presents the highest per capita value of the North and Northwest states, namely 10,595 US$/inhab (11o in the national ranking) for a population of 3.54 million (15o in the national ranking). The GDP per capita of AM is 13% lower than the national value and 71% lower than that of the Federal District, the highest of Brazil.
In terms of PES per capita, with an index of 1.27 toe/inhab, the state is the first one of the North states and it is the 12o in the national ranking. The index is 12% lower than the Brazilian index, 1.45 toe/inhab, and 52% lower than the Espirito Santo state, 2.63 toe/inhab, the highest of the country. The world index is 1.88 toe/inhab.
With a fleet of 217 thousand light vehicles (18o in the ranking), AM has a low vehicles index per inhabitant – 76 per thousand inhab (21o in the national ranking, 5o in the North region and 43% of the national value) and it has a high index relative to energy consumption of the Otto Cycle (gasoline + ethanol + gas) per vehicle, 1.74 m3 of gasoline equivalent year (9o in the ranking and 135% of the national value). It is an index that characterizes income concentration – low number of vehicles concentrated on social classes with high income, and high specific consumption.
A relative high consumption of firewood and vegetal coal for cooking – 0.096 toe/inhab compared to the 0.36 toe/inhab national index – is another index that shows the relative larger presence in the economy of social classes with low income
Energy Emissions and Socio-Economic Ranking
Note: the higher the ranking the worse the index conditions in terms of economic development and environmental aggression.
4. Terminology and Energy Concepts
The Total Primary Energy Supply (PES) represents all the energy necessary to drive the economy of a state, a country or a region. The PES and its relationships with economic, demographic information and particle emissions are the most important variables for analyses and performance comparison of regions.
The PES is divided into two groups: the first one corresponds to the energy consumed in the economic sector (Sectoral Energy Consumption) and the second one corresponds to uses and losses in the Energy Industry whose production is intended for the first group. The first group includes the final energy consumption in the industrial, residential, transport, services and agriculture and animal husbandry sectors besides the non-energy uses (solvents, asphalt, and lubricants, among others). The second group includes process heat, driving force and illumination in the processes of production and transformation of energy; and the respective losses in the distribution and storage of energy.
PES = Sectoral Energy Consumption + Energy Industry
The ton oil equivalent (toe) is the standard unity that permits the sum of quantities of different forms of energy in their commercial units. Each energy source liberates more or less heat when it is consumed. Firewood, for example, liberates 3,100 calories per gram (cal/g) or 3.1 Gcal/gr when it is burned. Gasoline liberates 10.4 Gcal/t and for petroleum it is used the average factor of 10 Gcal/t Therefore, the ratio between the firewood index and that of petroleum is 0.31 toe/t, and this factor converts tons of firewood into toe. The gasoline factor would be 1.04 toe/t. This is the criterion that permits to sum all forms of energy in the standard energy unit, “toe”.
CO2 emissions are calculated using coefficients obtained from chemical reactions that occur when there is combustion of each fossil fuel in the presence of oxygen in the air. The coefficients of the different types of coals vary from 3.5 to 4 CO2/toe, those of petroleum and its products, between 2.5 and 3.4 tCO2/toe and those of natural gas, between 2 and 2.4 tCO2/toe.
5. Total Primary Energy Supply (PES)
The PES of AM in 2012 was 4,474 thousand toe (1.6% of the Brazilian amount) of which only 17.5% is renewable sources and 82.5%, fossil fuels, indexes that are quite different from the national values, 42% and 56% respectively. In the PES structure, natural gas, with a high use in electric energy generation and firewood (due to its largest use for cooking) are important relative to the average national values.
Primary Energy Supply, by Source (%)
5.1 CO2 Emissions
AM has emitted in 2012, 10,2 million tons of CO2 (2.3% of the Brazilian emission). Due to the higher presence of fossil fuels in the PES, AM has emitted 2.27 tCO2 per toe of the PES (last in the national ranking – higher environmental aggression regarding energy use), as compared to the Brazilian average, 1.54 tCO2/toe. Nevertheless, the index is slightest lower that the world value, namely, 2.38 tCO2/toe.
CO2 Emissions per Fossil Energy Source (%)
In the distribution per source, fuel oil is responsible for 72% of emissions and gas, 28%, even though in the PES their participations are equal. The reason is that petroleum emission coefficients per toe and those of its products are higher relative to that of gas. Emissions per capita of AM are 2.9 tCO2, 28% larger than the national index namely, 2.27 tCO2/inhab.
Energy demand for electric generation, 55%, has the highest share in CO2 emissions of AM. It is followed by transport with 24% of emissions. The other sectors, such as agriculture, services, industrial and residential are responsible for 21% of emissions as compared to the Brazilian average namely, 43%. The low participation of industry is due to the high use of electric energy in the production of electric-electronic products combined with the low use of fossil fuels.
CO2 Emissions per Activity (%)
5.2 External Energy Trade
Of its PES of 4,474 thousand toe, AM imports only 144 thousand (3%), the lowest percent among the states that have external dependence regarding energy. The state is importer and exporter of petroleum and its products and has a net dependence of 5% of these products. Primary production of the state was 6,602 thousand toe in 2012 and regarding natural gas, of the production of 4,158 thousand toe, 1,967 thousand toe were re-injected in the oil wells and 215 thousand toe were not utilized (burned). This shows that AM has the potential of becoming an energy exporter as far as gas is a substitute for petroleum products in the consuming markets of the state.
Energy Surplus and Deficit - % of PSE
5.3 Primary Energy Supply, per Activity
Disaggregating the AM’s PES in Final Sectoral Consumption (FSC) and Energy Industry (EI) shows differences relative to that of Brazil due mainly to the larger relative participation of electric generation in thermal plants which causes high thermal losses. The state, with expressive 50.2% of EI in the PES, shows the largest index in the national ranking. In Brazil, EI absorbs only 18.6% of PES while in the world this value is 35% that also has high participation of electricity supply from thermal plants.
In 2012, of the 4,474 thousand toe of the AM’s PES, 2,228 thousand toe were consumed in the economic sectors. It should be mentioned that about 180 thousand toe of EI, referring to commercial losses of electric energy, should be accounted for in the final sectoral consumption for a more equitable comparison with the national average. In this case, EI would have a participation of 46% in the PES.
Destination of the Primary Energy Supply (%)
5.3.1 Energy Industry
It is observed in the graphic below that electric losses correspond to 72.2% of energy use in the Energy Industry in AM, considering the thermal losses and the transmission and distribution losses. Other losses that occur in the exploitation and production of oil, in the refinery and in the charcoal works are responsible for 18.4%. Regarding Auto Consumption it is responsible for 9.4% of EI and mainly due to oil and gas extraction in the Urucu oil field, in Coari and in the Manaus Refinery (REMAN). These are values quite different from those of the country.
Destination of Energy Uses in the Energy Industry
5.3.2 Final Sectoral Consumption
In the energy Final Sectoral Consumption of AM it is observed the predominance of the transport sector with 41.3%, and of the residential sector with 25.3%. Even though non energy-intensive and slightly above 40% of the GDP of the state, industry consumes little energy. Therefore, the non-energy uses are also low. So the other economic sectors grow in the FSC.
Final Consumption per Economic Sector (%)
188.8.131.52 Industrial Consumption of Energy
The industry of AM consumes only 0.4 million toe of energy, equivalent to 0.4% of the national industrial consumption. In the energy source matrix, electricity use becomes relevant with 45% of participation, more than the double of the national participation. Biomass follows with 27% of participation and its main vector is the use of charcoal for cooking and production of ceramics.
Industrial Consumption of Energy, per source (%)
184.108.40.206 Energy Consumption in Transport
In the transport matrix, compared to that of Brazil, hydro way and airway are prominent, the first due to the special conditions of fluvial navigation and the second one for the strategic geographic position of Manaus as a place for refueling airplanes in transit.
Matrix of Energy Consumption in Transport, per Fuel (%)
In the transport matrix per energy source “Others” aggregates aviation kerosene and fuel oil for national ships – supply to foreign ships is considered exports. The state has low production of ethanol and so it has a smaller proportion in transport. Gasoline “A” presents a higher participation in the total consumption of the sector, with 38.1% followed by Diesel, with 35.3%, different from that of Brazil where Diesel has the highest proportion.
In the Otto Cycle – combustion by gasoline, ethanol and gas spark – the state has a consumption per capita index of 42% in gasoline equivalent which is lower than the national value (0.126 m³/inhab and 0.219 m³/inhab, respectively). Concerning consumption per vehicle, AM shows an index that is 35% higher than that of Brazil (1.74 m³/vehicle and 1.29 m³/vehicle, respectively), which characterizes higher income concentration. The low index of vehicles per inhabitants corroborates the assumption of vehicles concentration in classes with higher income and this increases consumption per vehicle – higher proportion of new vehicles with higher power and higher average distance covered annually.
Relationship between Consumption in AM and in Brazil
220.127.116.11 Residential Energy Consumption
The state of AM has consumption per capita of firewood and vegetal coal in the residential sector much higher than that of Brazil, 0.096 toe/inhab and 0.036 toe/inhab, respectively. This higher consumption is a result of the lower consumption of LPG, 26% smaller than the national index and close to the value of the state with the smallest consumption. Regarding electricity consumption, the state has an index 28% inferior to the national one, 439 kWh/inhab and 606 kWh/inhab, respectively (it should be mentioned that the AM index is similar to the national one, when the huge commercial losses are reallocated to the consumption sectors).
In 2012, of the primary energy supply of electricity of the state, 9,509 GWh, 37.5% correspond to commercial and technical losses in distribution (3,567 GWH) a value much higher than that of Brazil, 16%.
Residential Sector: Relationship between Consumption per capita of Amazonas and Brazil
So, in the residential consumption matrix it is observed a larger participation of biomass relative to that of Brazil. The largest biomass consumption, with use efficiency between 1/7 and 1/10 of the efficiency of LPG stoves, makes the state one of the largest total residential energy per capita relative to that of Brazil namely, 0.159 toe/inhab and 0.123 toe/inhab, respectively.
Residential Energy Consumption Matrix, per Source (%)
Concerning agriculture, AM ranks o 22º in grains production and 20º in cattle-raising and therefore, low energy consumption in the sector. Wood consumption for manioc flour and sweets fabrication and for fodder preparation are prevalent vis-à-vis other energy sources. Total energy consumption per capita in AM is 0.039 toe and it is 28% lower than that of Brazil namely, 0.054 toe/inhab.
Energy Consumption Matrix in Agriculture per Source (%)
6. Total Final Uses of Energy per Source
Adding to the Final Sectoral Consumption the Industry Energy Consumption, one obtains the participation structure of the different energy sources, shown in the following graphic. Due to the characteristics already mentioned, fuel oil has the largest participation use in transport and also electricity, due to the industrial characteristics, more intensive in the use of that energy source. The use of natural gas is exclusively due to the exploitation and refining of oil in the Energy Industry.
Final Uses of Energy Matrix per Source (%)
It should be mentioned that the participation of electricity would reach 26% if the commercial losses would be put on the same level of the national average and this would transfer about 180 thousand toe to the economic sectors.
7. Electric Energy Primary Energy Supply
In the Electric Energy Internal Primary Energy Supply Matrix – a subset of the Primary Energy Supply Matrix - , it is observed that in AM fuel oil and natural gas have the highest participation while hydro and biomass have the lowest one relative to those of Brazil. So, renewable sources have a participation of 13.7%
Electric Energy Supply Matrix per Source (%)
Simplified Energy Balance (2012)
Graphic Edition/Edição Gráfica:
Tuesday, 23 September 2014.