Energy Account, Australia methodology

The Australian Bureau of Statistics (ABS) Energy Account, Australia (EAA) is one of the environmental economic accounts produced by the ABS and is based on the System of Environmental Economic Accounting (SEEA). The use of the SEEA Central Framework enables linkages between ABS environmental economic accounts and other parts of the National Accounts produced by the ABS. SEEA-Energy specifically covers Energy Accounts.

This account is the first account based on an updated method adopted by the ABS in 2023. The new account uses a ‘bottom-up’ approach to compile the physical supply and use tables. It takes advantage of new data sources combined with previously available sources (e.g., National Greenhouse and Energy Reporting Scheme (NGERS) data) to better reflect activity at the industry level. This will give ABS the ability to produce more timely and more detailed energy accounts in future.

This release contains physical supply and use tables, which show physical values of energy from both a user and producer perspective, energy indicators and energy assets at the National and Industry level for Australia. The adoption of a new method means that data released in this account will, in most instances, be different from that released in earlier accounts. Users should take this into account when referring to earlier publications. The 2021-22 data, as well as the timeseries for most of the products back to 2010-11, have been compiled using the updated method.

Data relating to monetary supply and use of energy have not been produced for this edition but are planned for inclusion in the next account due for release in late 2024.

The EAA is based on the SEEA Central Framework. The SEEA Central Framework is a conceptual framework designed to measure the environment and its relationship with the economy. The SEEA Central Framework was adopted by the United Nations (UN) Statistical Commission as an international statistical standard in 2012.

The SEEA Central Framework uses a systems approach to organise environmental and economic information, covering, as completely as possible, the stocks and flows that are relevant to the analysis of environmental and economic issues. In using this approach, the SEEA Central Framework applies the accounting concepts, structures, rules and principles of the System of National Accounts (SNA). Environmental-economic accounts ('environmental accounts') deliver important extensions to SNA accounts. In practice, these accounts may include physical supply and use tables, functional accounts (such as environmental expenditure accounts), and asset accounts for natural resources.

The EAA provides a framework for linking physical information to core components of the SNA. The production of physical supply and use tables and energy asset tables are (to the extent that it is conceptually possible) consistent with the approaches used in the construction of the SNA. This allows for consistent analysis of the contribution of energy to the economy, the impact of the economy on non-renewable energy reserves, and the efficiency of the use of energy resources within the economy.

Supply tables show the total supply of energy, including energy imports, within the economy while the use tables show the total use of energy, including energy exports. The supply and use tables can be compiled in both physical terms (i.e., Joules) and monetary terms (i.e., dollars).

The supply-and-use concept is based on the fundamental economic identity that the supply of products must equal the use of products.

Gross energy flow accounts record total energy extracted from natural inputs and the energy (or energy products) produced from those natural inputs. For example, a gross energy account will include coal used in a power station (as the natural input) and the electricity produced (as the energy product) and natural gas used (as the natural input) and the liquified natural gas (LNG) produced (as the energy product) etc.

Energy indicators are used to provide a greater understanding of the production and use of energy.

Information contained in the EAA combined with additional demographic and economic information provides insights into energy efficiency and energy productivity. Indicators used in the EAA can be divided into three types: total economy indicators; industry indicators and household indicators.

The degree of self-sufficiency (or dependence on imports) measures the proportion of domestically produced energy compared to net energy use plus losses (equivalent to net domestic use plus exports). A self-sufficiency rating of over 100 indicates a net exporter of energy products.

One of the means of extending the life of energy products is to use those products that can be renewed through natural processes. The indicator share of renewable energy in net energy inputs measures the renewable content of non-renewable and renewable net energy supply. The indicator is calculated by dividing the net renewable energy supply by net energy supply.

Energy intensity is a ratio of energy consumed per unit of economic output. The energy intensity analysis is based on the ratios of physical net energy consumption (in gigajoules (GJ)) to industry gross value added (IGVA) data.

The EAA uses annually reweighted chain volume estimates of IGVA in the estimation of energy intensity from the Australian System of National Accounts (SNA). These IGVA estimates are re-weighted each year, and therefore energy intensity measures are updated with each annual estimation cycle. For example, all figures contained in the EAA 2021-22 estimates of energy intensity are recorded in 2021-22 prices and are thus directly comparable over time.

Household physical energy use is presented on both a per person and per household basis. 

ABS sources for household and population data are as follow:

• National, state and territory population; and 
• ABS Household estimates

Household estimates are based on a combination of:

• latest estimated resident population 
• proportion of people living in private dwellings, from Censuses
• average household sizes from Censuses
• Census household counts
• Post Enumeration Survey household estimates

Coverage for physical supply and use tables includes the following energy products:

• Black coal (including thermal black coal and metallurgical black coal)
• Brown coal
• Coal products (including metallurgical coke, coal tar and brown coal briquettes)
• Natural gas (including coal seam methane gas and ethane)
• Liquefied natural gas (LNG)
• Crude oil and condensates
• Petrol (including aviation gasoline)
• Diesel and fuel oil (including heating oil)
• Kerosene (including aviation turbine fuel)
• Liquefied petroleum gas (LPG)
• Other petroleum products (including petroleum coke, petroleum-based solvents and chemical feedstocks, liquefied aromatic hydrocarbons))
• Hydrogen
• Biofuels (including ethanol, biodiesel, landfill and sludge biogas, and other biofuels) and energy from waste (non-biomass municipal materials)
• Wood and wood waste
• Bagasse
• Electricity
• Hydro energy
• Solar energy
• Wind energy, and
• Uranium.

Industry classifications used in this publication follow the 2006 edition of the Australian and New Zealand Standard Industrial Classification (ANZSIC), 2006 (Revision 2.0). The industries published are:

• Agriculture, forestry and fishing
• Mining
• Manufacturing
• Electricity, gas, water supply and waste services
• Construction
• Transport; and
• Commercial and services.

Several industries are further broken down on an energy use significance basis into the following groupings, with the relevant ANZSIC codes listed in brackets:

Mining:

• Coal (subdivision 6)
• Oil and gas (subdivisions 7), and
• Other mining (subdivisions 8-10). 

Manufacturing:

• Food, beverages and textiles (subdivisions 11-13)
• Wood, paper and printing (subdivisions 14-16)
• Petroleum and chemical products (subdivisions 17-19)
• Iron and steel (groups 211, 212)
• Non-ferrous metals (groups 213-214), and
• Other manufacturing (subdivisions 20, 22-25).

Electricity, gas, water supply and waste services:

• Electricity supply (subdivision 26)
• Gas supply (subdivision 27), and
• Water supply and waste services (subdivisions 28-29).

Transport:

• Road transport (subdivision 46)
• Rail transport (subdivision 47)
• Water transport (subdivision 48)
• Air transport (subdivision 49), and
• Other transport, storage and services (subdivisions 50-53).

Commercial and Services:

• Wholesale trade (subdivisions 33-38)
• Retail trade (subdivisions 39-43)
• Accommodation and food services (subdivisions 44-45)
• Information, media and telecommunication services (subdivisions 54-60)
• Financial and insurance services (subdivisions 62-64)
• Rental, hiring and real estate services (subdivisions 66-67)
• Professional, scientific and technical services (subdivisions 69-70)
• Administrative and support services (subdivisions 72-73)
• Public administration and safety (subdivisions 75-77)
• Education and training (subdivisions 80-82)
• Health care and social assistance (subdivisions 84-87)
• Arts and recreation services (subdivision 89-92), and
• Other services (subdivisions 94-96).
   

The Net Present Value (NPV) of the resource stocks has been obtained from the Australian System of National Accounts. The NPV is the expected value of the resource based on current resource prices, current extraction methods and costs, and on present physical rates of extraction.

Economic Demonstrated Resources (EDR) are resources that are judged to be economically extractable and for which the quantity and quality are computed partly from specific measurements, and partly from extrapolation for a reasonable distance on geological evidence. The extraction rate measures the rate at which assets are being depleted and the remaining resource life measures life of a resource at current production rates.

The EDR/extraction rate ratio provides an indicator of years of availability of a resource under current levels of EDR's and extractions.

The estimates contained in this publication are drawn from a wide range of ABS and non-ABS data sources, including:

ABS sources:

• Energy, Environment and Water Survey (EWES) 2011-12, 2014-15, and 2017-18
• Environment Indicators Survey (EIS) 2012-13, 2013-14, 2015-16, 2016-17, 2018-19, 2019-20, and 2020-21
• Energy and Water Survey 2021-22
• Australian System of National Accounts
• Australian National Accounts: Input-Output Tables (Product Details)
• Australian Population Census 2021
• QMIN 2012-13 to 2021-22
• Survey of Consumer Sales (SOCS) 2012-13 to 2021-22
• International Trade (FASTTRACCS) 2010-11 to 2021-22

Non-ABS sources:

• Department of Climate Change, Energy, the Environment and Water, Australian Energy Update 2023
• Clean Energy Regulator, National Greenhouse and Energy Reporting Scheme (NGERS)
• Department of Climate Change, Energy, the Environment and Water, Australian Petroleum Statistics 2023
• Department of Industry, Science, Energy and Resources, Resources and Energy statistics
• The Australian Energy Council, Electricity Gas Australia, and
• Energy Rating website.

Changes in stocks of produced assets and product inventories, previously referred to as changes in inventories.

The fibrous residue that remains after sugarcane is crushed. It is used as a fuel to produce steam and electricity for use in sugar production, or for export to the electricity grid in some instances. It can also be used for mulch and animal feedstock

Behind the meter (BTM) refers to energy that is generated, stored and/or consumed on the energy user’s side of the meter, such as solar panels or battery storage.

Produced from renewable organic sources or ‘feedstocks’, biofuels include ethanol and biodiesel, commonly used as fuels in transportation, as well as landfill and sludge biogas captured for combustion to generate heat and/or electricity.

A sedimentary organic rock consisting of anthracite, bituminous and sub-bituminous rank coals. Black coal includes thermal black coal, which is primarily used as a solid fuel to raise steam to generate electricity; and metallurgical black coal, used to produce coke for steel making.

Made from brown coal through a process of crushing, drying and the addition of a binding agent, to produce a compact, high-energy fuel easily transported and commonly used for industrial and domestic heating. These have been aggregated into coal products.

Also known as lignite, brown coal is a low rank, brownish-black coal with a high moisture content of around 60%.

A gaseous hydrocarbon and the fourth member of the paraffin series (following methane, ethane and propane). If exposed to higher pressures or lower temperatures it can be converted to liquid form and is a major component of LPG.

For certain types of economic analysis, it is useful to examine estimates of the principal flows of goods and services in the economy revalued in such a way as to remove the direct effects of price change over the relevant period. These estimates are obtained by weighting together the elemental volume indexes from the previous financial year to the current financial year, where the weights are calculated using the current price value shares of the previous financial year. The resulting aggregate year-to-year volume indexes are linked together to form a time series which is referenced to the current price estimates of the reference year.

Includes products made from coal such as metallurgical coke, coal tar and briquettes. Blast furnace gas and coke oven gas, previously included as coal by-products, have been excluded from the scope of this account. Benzene/toluene/xylene feedstock, previously included as a coal by-product, has been reclassified as other petroleum products.

A liquid mixture of pentanes and heavier hydrocarbons that form part of the vapour phase of natural gas in the reservoir and become liquid under standard field separation conditions.

Energy lost in the transformation of a primary fuel to a derived (secondary) energy product.

A mixture of hydrocarbons, existing in the liquid state; both in natural underground reservoirs and at atmospheric pressure after passing through surface separating facilities.

Measures the dependence on energy imports to sustain current energy activity. The degree of dependence on imports or 'self-sufficiency', the relationship between gross domestic energy inputs and the domestic end use inclusive of conversion and distribution losses, can be calculated from the Energy Account Australia. This measure is closely connected with the pattern of extraction of energy resources presented in the energy asset tables. An energy self-sufficiency number greater than 100 indicates net exports of energy, a number less than 100 indicates net imports.

The flow of electrical power or charge. It is a secondary energy source, meaning it is derived from the conversion of primary sources of energy such as coal, natural gas, oil, nuclear power, and renewables.

The use of energy products to produce goods and services that are not energy products. These energy products may be used for intermediate consumption, for household final consumption, as a change in inventories of energy products, or for export.

The term decoupling refers to a break in the link between the use of energy products and economic growth. The extent to which such decoupling takes place can be illustrated by comparing the change in chain volume Gross Domestic Product (GDP) with the change in total domestic use of energy. Decoupling occurs when the growth rate of energy use is less than (or higher than) that of its economic driving force (e.g., GDP) over a given period. Decoupling can be either absolute or relative. Absolute decoupling occurs when the environmentally relevant variable (e.g., energy) is stable or decreasing while the economic driving force is growing. Decoupling is said to be relative when the growth rate of the environmentally relevant variable is positive, but less than the growth rate of the economic variable.

Energy extracted per household is calculated by dividing the net energy supplied by households by the estimated number of households.

Energy produced from burning non-biomass waste to produce heat and/or electricity.

A measure of the energy consumed to produce one unit of output. Energy intensity measures are calculated for a selected range of industries that rely on energy inputs to produce output based on the net energy use table. Estimates of value added from 'ownership of dwellings' is excluded from the calculation of energy intensity.

Include forms of energy suitable for direct use (e.g., electricity and heat) and energy products that release energy while undergoing some chemical or other process (including combustion). By convention, energy products also include peat, biomass and waste when and only when they are used for energy purposes.

Energy use per household is calculated from net household energy use divided by the estimated number of households.

An information system and framework that links the economic activities and uses of a resource to changes in the natural resource base, therefore linking resource use with the System of National Accounts. See also SEEA.

Goods exported (exports) represents the quantity of goods sent to other countries or for which ownership changes from residents to non-residents.

Measure the rate at which physical removal of energy resources occurs from the energy deposits which occur naturally. Extraction rate is the production rate divided by the economic demonstrated resource of an energy asset.

Use that finally consumes a product, as opposed to an intermediate use. Final use includes household final consumption; government final consumption; exports; and changes in inventories.

General term used for a framework presents information on the physical flows of resources throughout the economy. Flow accounts published for energy include supply and use tables.

Any natural fuel derived from decomposed or partly decomposed organic matter.

Fuel oils include petroleum-based oils used as fuel, e.g., for transport, heating oil or other petroleum-based oils. Fuel oils were previously aggregated into Other refined products.

Total energy including that derived from primary as well as secondary energy sources. See also net energy.

Gross energy input reflects the total energy captured from the environment, energy products that are imported, and energy from residuals within the economy. In Australia, due to limitations in measuring losses due to extraction, this measure is calculated using total gross supply.

Total energy including that derived from primary as well as secondary energy sources. See also net energy.

Net expenditure on goods and services by persons and expenditure of a current nature by private non-profit institutions serving households. This item excludes expenditure by unincorporated businesses and expenditures on assets by non-profit institutions (included in gross fixed capital formation). Also excluded is expenditure on maintenance of dwellings (treated as intermediate expenses of private enterprises), but personal expenditure on motor vehicles and other durable goods and the imputed rent of owner-occupied dwellings are included. The value of 'backyard' production (including food produced and consumed on farms) is included in household final consumption expenditure and the payment of wages and salaries in kind (e.g., food and lodging supplied free to employees) is counted in both household income and household final consumption expenditure.

Hydrogen is a lightweight gas found in water and hydrocarbons. It is not freely available in its pure form but is transformed using other energy sources. In the past, hydrogen has been made from fossil fuels such as natural gas and coal but can also be generated from water using renewable electricity and an electrolyser. Hydrogen can be burnt directly, like natural gas. It can also be stored as a gas or liquid and used in fuel cells to generate electricity for remote communities or mining sites, and to power fuel cell vehicles including cars, trucks, buses and trains.

A process in which flowing water is used to spin a turbine connected to a generator.

Goods imported (imports) represent the quantity of goods received from other countries or for which ownership changes from non-residents to residents.

The value of an industry’s output at basic prices, minus the value of goods and services consumed as inputs during the process of production. Valuation of output at basic process removes the distortion caused by variations in commodity taxes and subsidies across the output of individual industries.

Intermediate use consists of goods and services consumed as inputs by a process of production, excluding fixed assets whose consumption is recorded as consumption of fixed capital. The goods or services may be either transformed or used up by the production process.

Kerosene is a refined product made from crude oil and is used to power jet aircraft engines as well as for lighting and heating. It was previously aggregated into Other refined products.

Natural gas that has been processed and then refrigerated to the very low temperatures needed to reach the liquid state.

Consists of propane, butane and isobutane and is derived by processing the natural gas produced from either gas or oil reservoirs through a low-pressure gas separation plant.

Metallurgical black coal (also called coking coal) has a high carbon content and is typically used as the source of carbon and heat in steel making. It is transformed into coal coke, which then feeds into the blast furnace during steel production. In these accounts it is aggregated with thermal black coal and reported as black coal totals.

Coke resulting from high-temperature retorting of metallurgical coal; a dense, crush-resistant fuel for use in shaft (blast) furnaces. This has been aggregated into coal products.

Systematic summary of national economic activity. At a detailed level it shows a statistical picture of the performance and structure of the economy.

The NGERS is a framework for the mandatory reporting of greenhouse gas emissions, energy consumption and energy production by Australian businesses exceeding specified thresholds and commenced in relation to the 2008-09 reference period.

A combustible mixture of hydrocarbon gases. While natural gas is formed primarily of methane, its composition can vary widely, commonly including ethane, propane, butane and pentane.

Energy from natural inputs encompasses flows of energy resulting from the extraction and capture of energy from the environment by resident economic units.

Measures all uses of energy by residents of a country. It is equal to the total net use of energy less exports of energy.

Total net energy accounts for the transformation process of a primary energy product to a secondary energy product and related conversion losses. In this way, estimates for total net energy avoid double counting the amount of converted primary energy. See also gross energy.

Other petroleum products include petroleum coke, petroleum-based solvents and chemical feedstocks, and liquefied aromatic hydrocarbons (e.g., benzene/toluene/xylene). Other refined products referred to in the previous account have been disaggregated. Aviation turbine fuel and kerosene are now included under Kerosene, Aviation gasoline has been reallocated to Petrol, and fuel and heating oils have been grouped as Fuel oils.

Other volume changes quantify changes in resources that occur between one period and another.

Consists of goods and services produced within a business that become available for use outside that business, plus any goods and services produced for own final use.

Refinery product made from crude oil. In this account, it includes automotive gasoline and aviation gasoline (which was previously included as Other refined products).

Naturally occurring hydrocarbon or mixture of hydrocarbons as oil or gas, or in solution found in sedimentary rocks.

Those forms of energy obtained directly from nature. They include both non-renewable and renewable energy. Primary energy sources include firewood, coal, crude oil, natural gas, liquefied natural petroleum gases, uranium, bagasse, hydro, wind and solar energy.

A gaseous hydrocarbon and the third member of the paraffin series (following methane and ethane). If exposed to higher pressures or lower temperatures it can be converted to liquid form and is a major component of LPG.

A petroleum product which has been derived from processes such as catalytic cracking and fractional distillation. Refined products include: automotive gasoline and diesel, aviation gasoline and turbine fuel, kerosene and heating oil, industrial diesel and fuel oil, and others such as naphtha and petroleum coke used as fuel.

Measures the expected life of a resource under current production levels. Remaining resource life is calculated from the economic demonstrated resource of an energy asset divided by the production rate. This is different to the Net Present Value (NPV) which predicts the expected value of the resource based on current prices, current extraction methods and costs, and on present physical rates of extraction.

Renewable energy is defined as those energy resources that are naturally replenishing. They are virtually inexhaustible in duration but may be limited in the amount of energy available at a given time. Renewable energy resources include biomass, hydro, geothermal, solar, wind, ocean thermal, wave action, and tidal action.

Measures the contribution to total net energy supply through renewable sources extracted by households. The indicator is calculated by dividing household renewable energy supply by total net domestic use.

Measures the proportion of total renewable energy supply compared to total domestic end use. A separate proportion of total renewable energy supply compared to total domestic end use of electricity is also provided.

Energy residuals in physical terms comprise energy losses and other energy residuals. Examples of energy losses include flaring and venting of natural gas and losses during transformation in the production of primary energy products from natural inputs and in the production of secondary energy products. Energy losses during distribution may arise from the evaporation and leakages of liquid fuels, loss of heat during transport of steam, and losses during gas distribution, electricity transmission and pipeline transport. Energy residuals also include other energy residuals particularly heat generated when end users (either households or enterprises) use energy products for energy purposes (e.g., household lighting).

A concentration of naturally occurring solid, liquid, or gaseous materials in or on the earth’s crust and in such form that its economic extraction is feasible now or in the future. The definition does not intend to imply that exploitation of any such material will take place in that time span, but only that its possibility might reasonably be considered.

A product that has been derived from a primary energy source. Secondary energy resources include refined petroleum products, coal by-products, coke and electricity.

Measures the proportion of renewable energy compared to net energy supply in the economy.

Photovoltaic (PV) conversion generates electric power directly from the light of the sun in a photovoltaic (solar) cell. Solar thermal electric generators use the radiant energy from the sun to produce steam to drive turbines.

An accounting framework with the basic principle that the total supply of a product is equal to its total use.

The SEEA is a framework used to develop environmental accounts by integrating environmental information into an accounting framework. The SEEA handbook provides the conceptual basis for developing a framework to describe the relationship between the natural environment and the economy. See also Environmental account.

The SNA is an international framework which can be used to develop a comprehensive, consistent and flexible set of macro-economic accounts.

Thermal black coal is primarily used in power generation to create electricity. In these accounts it is aggregated with metallurgical black coal and reported as black coal totals.

A measure of total resident energy use, including losses due to conversion or transformation into other energy products. Total domestic energy use is calculated from total net energy use minus exports of energy products.

Defined as the total net energy use per capita. Energy use per capita is calculated by dividing total net energy use by estimated resident population.

Australian production plus imports.

The transformation of energy products into other energy products, for example the conversion of thermal black coal to produce electricity, or the refining of crude oil to produce petroleum products.

Radioactive grey heavy metallic element, used as a source of nuclear energy.

The conversion of wind energy into electricity using wind turbines.

Includes wood and wood waste used to produce energy, usually through burning.