Improving the methodology of national energy balances to adapt to the energy transition

An adequate information basis is important for designing and evaluating policy measures to reach international climate goals. Current energy statistics are primarily based on the UN's International Recommendations for Energy Statistics (IRES). We have examined changes in the energy system and how they can be depicted in energy balances, using IRES methodology as the benchmark. We have found that the increasing variety in energy generation through prosumers cannot be illustrated currently. In the manufacturing industries, state-of-the-art balancing limits the depiction of autoproducers' output other than electricity and heat. Their numbers will increase due to hydrogen demand for decarbonisation, among others. In efforts to inform necessary decision-making regarding decarbonisation, an additional focus must also be set on the representation of energy services in demand. Including useful energy categories allows the development of specific useful energy demands, enabling application-driven technology and energy carrier deployment. To remedy the identified shortcomings, the Sectoral Gross Energy Balance Border enables the identification of involved economic units (e.g. manufacturing industry sectors, households, services and energy industries). It features a sector-interrelated approach, in which energy flows follow the physical location of energy operation. Thereby, energy balances can illustrate the multiple transformations in the energy system and better inform policymaking. • Current international energy balancing is challenged by the developments of the energy transition. • The introduction of a novel energy balance border can remedy this issue. • Energy generation, transformation and demand are visualised by involved economic unit. • Application in an analysis of a fully decarbonised case study of Austria.