CASES Cost Assessment for Sustainable Energy Systems

1 / 112
About This Presentation
Title:

CASES Cost Assessment for Sustainable Energy Systems

Description:

exchanges and dissemination of information and good practice ... Objective One will produce: ... Partners from new member States. Partners from associated ... – PowerPoint PPT presentation

Number of Views:38
Avg rating:3.0/5.0
Slides: 113
Provided by: feempr

less

Transcript and Presenter's Notes

Title: CASES Cost Assessment for Sustainable Energy Systems


1
CASES Cost Assessment for Sustainable Energy
Systems
2
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

3
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

4
What is CASES
  • CASES is the acronyms of Cost assessment of
    sustainable energy costs, which is an European
    Commission funded Coordination Action.
  • A Coordination Action
  • aims at promoting and supporting the
    coordination, cooperation or networking of a
    range of research and innovation projects or
    operators for a specific objective, normally to
    achieve improved integration and coordination of
    European research for a fixed period of time.

5
What is CASES
  • Types of co-ordinated collaborative activities
  • studies, analyses, benchmarking exercises
  • exchanges and dissemination of information and
    good practice
  • organisation of conferences, seminars, meetings
  • setting up of common information systems, setting
    up of expert groups
  • definition, organisation and management of joint
    or common initiatives
  • joint memoranda of understanding
  • pre-standardisation and standardisation
    activities in specific fields
  • establishment of roadmaps for research in
    specific topics.

6
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

7
Context
  • While effort has been devoted in recent years to
    the estimation of the external costs of energy,
    more attention is now being paid to the
    examination of both the private and external
    costs in one framework.
  • Energy policy making is concerned with both the
    supply side and the demand side of energy
    provision.
  • The geographical dimension is also important
    since environmental damage from energy production
    crosses national borders.
  • Costs are dynamic the private costs and the
    external costs are changing with time, as
    technologies develop, knowledge about impacts of
    energy use on the environment increases and
    individual preferences for certain environmental
    and other values change.
  • The least well and least systematically covered
    area of external cost is the one related to
    energy security.

8
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • General objective
  • Detailed objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

9
Objectives
  • General Objective
  • CASES aims to evaluate policy options for
    improving the efficiency of energy use,
    underpinning this evaluation with a consistent
    and comprehensive picture of the full cost of
    energy, and to make this crucial knowledge
    available to all stakeholders.

10
Objectives
  • Detailed Objectives
  • To compile estimates of full costs of the use of
    different energy sources in EU and selected other
    countries under agreed energy scenarios to 2030.
  • To use resulting datasets to undertake
    comparative cost assessments of introducing
    alternative policy options over the time period.
  • To disseminate research findings to energy
    producers and users and to the policy makers.

11
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Objective one
  • Objective two
  • Objective three
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

12
Expected results
  • Objective One will produce
  • Best predictions about the evolution of the
    private costs of major technologies for
    generating energy from different sources over the
    next 25 years.
  • Best estimates of the major environmental
    external costs of different types of energy in
    different countries and how will these change in
    the next 25 years.
  • Best estimates of the major energy
    security-related external costs of different
    types of energy in different countries and of
    their changes in the next 25 years.
  • Best estimates of the likely prices of major
    sources of energy over the next 25 years.
  • Determination of the greatest uncertainties and
    of the most relevant research directions for the
    future.

13
Expected results
  • Objective Two will produce comparative
    assessments of
  • the investment and operational costs of different
    energy options taking account of only private
    costs and taking account of private plus external
    costs. This assessment is dynamic and will
    provide the implications of different levels of
    internalisation on the investment decisions and
    on key social indicators.
  • the impacts of the use of different methods of
    decision-making on the selection of projects -
    e.g. cost-benefit analysis with externality
    adders versus multi-criteria decision analysis
    tools.
  • the implications of different taxes/charges on
    energy and/or on emissions on (a) the degree of
    internalisation and (b) the comparative cost
    comparisons, now and over time.

14
Expected results
  • Objective Three will produce
  • An interactive web site for the dissemination of
    project related information (partnership,
    activities and results, reports and deliverables,
    useful policy documentation, etc).
  • An electronic mailing list to ensure prompt,
    updated and easy communication on project news.
  • Two stakeholders workshops and a final conference
    organised to present main results of the project.

15
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

16
Interaction with other projects
  • This Coordinated Action builds on the formidable
    amount of research produced by several projects,
    focused to measure the full costs of the use of
    different energy sources such as fossil fuels,
    nuclear energy and renewable energy sources.
  • CASES will interact with other projects to
    assess energy scenarios, external costs and
    private costs.

17
Interaction with other projects
  • Former and current projects related to CASES
  • Projects focused on External Costs of Energy
  • ExternE, NewExt and ExternE-Pol,
  • DIEM,
  • ECOSIT,
  • INDES,
  • MAXIMA
  • Project focused on both the private and external
    costs
  • NEEDS
  • Projects focused on energy scenarios
  • Primes,
  • Poles,
  • NEEDS.
  • Projects producing national energy models for non
    EC countries
  • Markal (India),
  • AIM (India),
  • IPAC (China).

18
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Partners from pre-existing North European member
    States
  • Partners from pre-existing Mediterranean member
    States
  • Partners from new member States
  • Partners from associated candidate Countries
  • Partners from associated non candidate Countries
  • Partners from INCO DEV Countries
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

19
Partners
  • The Consortium of the CASES Co-ordination Action
    is composed by twenty-six partners established in
    twenty States.
  • Most of the institutions are established for
    research activities (11) and for higher education
    (9). The other participants are not qualified in
    one particular activity but they provide a
    scientific expertise and carry out complementary
    activities necessary to achieve the objectives of
    this Co-ordination Action.

20
Partner
Partners from pre-existing North European member
States
Stockholm Environment Institute (SEI)
University of Bath (UBATH)
Energy Research Centre of the Netherlands (ECN)
Vrije Universiteit Amsterdam-Institute for
Environmental Studies (VU/IVM) Wageningen
Universiteit (WU)
Risoe National Laboratory (RISOE)
University of Stuttgart (USTUTT/IER) University
of Flensburg (UFLENS)
Flemish Institute for Technological Research
(VITO) Centre for European Policy Studies (CEPS)
21
Partner
Partners from pre-existing Mediterranean member
States
  • Observatoire Méditerranéen de l'Energie (OME)

Fondazione Eni Enrico Mattei (FEEM) Istituto di
Studi per lIntegrazione dei Sistemi (ISIS)
Centro de Investigaciones Energéticas,
Medioambientales y Tecnológicas (CIEMAT)
National Technical University of Athens (NTUA)
22
Partners
  • Partners from new member States
  • Lithuanian Energy Institute (LEI)
  • University of Warsaw - Warsaw Ecological
    Economic Center (UWARS)
  • Univerzita Karlova v Praze - Charles University
    Enviroment Center (CUEC)
  • Partners from associated candidate Countries
  • Energy Agency of Plovdiv (EAP)
  • Turkiye Bilimsel ve Teknik Arastirma Kurumu
    Marmara Research Center, Institute of Energy
    (TUBITAK)

23
Partners
Partners from associated non candidate Countries
  • ECON Analysis AS (ECON), Norway
  • SWECO Grøner as (SWECO), Norway
  • Paul Scherrer Institut (PSI), Switzerland
  • Energy Research Institute (ERI), China
  • Fundação COPPETEC (COPPETEC), Brasil
  • Indian Institute of Management Ahmedabad (IIMA),
    India

Partners from Developing Countries
24
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

25
Organisation of work
26
Organisation of work
  • Main steps of the project structure
  • Agree upon the storylines of three electricity
    scenarios WP1 (status quo and two options
    developments) this will produce as output three
    reference scenarios
  • Calculate average external costs per unit of
    emission, using Ecosense WP2, WP3, WP5, and
    private costs WP4 on the basis of the reference
    scenarios when a dynamic element is needed
  • Refine scenario definition on the basis of
    computed external costs by considering full costs
    per each country/technology given by external
    costs plus private costs, where external costs
    are given by average cost calculated by Ecosense
    times the emission determined under energy
    scenarios WP2-7. This second run will include
    policy variables in order to facilitate policy
    assessment WP8-11.
  • Analyse how the policy proposed in WP8-10 are
    affected by uncertainty in external costs
    estimates WP12.
  • Draw final conclusions on the final output of the
    project.

27
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

28
Description of Work Packages
  • WP1
  • Electricity Scenarios

29
WP1 Electricity scenarios
  • WP1 objective
  • Provide electricity scenarios up to 2030 for
    EU-25 countries, Bulgaria, Turkey, Brazil, India
    and China
  • WP1 partners
  • OME, France (coordinator)
  • ECON, Norway
  • FEEM, Italy
  • EAP, Bulgaria
  • TUBITAK, Turkey
  • COPPETEC, Brazil
  • IIMA, India
  • ERI, China

30
WP 1 Electricity scenarios
TASK 2 Energy policy and other drivers for power
supply options
TASK 1 Parameters having direct influence on the
evolution of electricity demand
TASK 3 Electricity scenarios by country and
primary fuel for 2010, 2020 and 2030
31
WP 1 Electricity scenarios
  • Parameters having direct influence on the
    evolution of electricity demand
  • Economic factors (growth rate, income, etc)
  • Prices and subsidies (for electricity and
    competitive final energies)
  • Structure of electricity demand
  • Peak load seasonal variation
  • Energy intensity
  • Industry structure
  • Potential for energy savings and DSM

32
WP 1 Electricity scenarios
ECONs European Gas Power Scenarios
Competition
Infrastructure investments then global hard
landing Visionary leadership EU leads
liberalization strong growth w/ volatility
Near-term overbuild creates circumstances for
re-energizing market liberalization
Political uncertainty high oil prices persist
Tough Post-Kyoto settlement
Beyond Kyoto
Scarcity
Tough Post-Kyoto commitments Governments
intervene Gas as intermediate fuel Nuclear
revival
Geo-Political tensions High fuel
prices Governments intervene policies Balkanizatio
n of markets
33
WP 1 Electricity scenarios
  • Electricity scenarios by country and primary fuel
    for 2010, 2020 and 2030
  • Review and assessment of existing scenarios
  • Use of in-house models when available

34
Description of Work Packages
  • WP2
  • Human Health Related External Costs of Different
    Energy Sources

35
WP2 Human Health Related External Costs
  • WP2 objectives
  • Collection of life cycle emissions for
    state-of-the-art conversion technologies
  • Description of methodology for external costs
    estimation (human health, materials, crops)
  • Including methodologies for other areas
    (eutrophication, acidification, land use change,
    climate change) into framework and tools
  • Calculation of marginal costs for
    state-of-the-art technologies in Germany
  • Organisation of a joint WP2-7 stakeholder workshop

36
WP2 Human Health Related External Costs
  • WP2 partners
  • USTUTT/IER, University of Stuttgart Institute
    of Energy Economics and the Rational Use of
    Energy (Co-ordination and main work on emissions,
    methodology, tools)
  • PSI, Paul Scherrer Institut (nuclear life cycle
    and methodologies for assessment of exposure of
    population with radioactive substances)
  • ISIS, Istituto di Studi per lIntegrazione dei
    Sistemi (cooperation concerning stakeholder
    workshop)
  • Involvement in estimating data on emissions of
    state of the art technologies outside EU25
  • Fundação COPPETEC, Brasil
  • IIMA, Indian Institute of Management Ahmedabad
  • ERI, Energy Research Institute, China
  • EAP, Energy Agency of Plovdiv, Bulgaria
  • TUBITAK, Turkiye Bilinsel ve Teknik Arastirma
    Kurumu Marmara Research Center, Institute of
    Energy

37
WP2 Human Health Related External Costs
  • WP2 description of work
  • Task 2.1 to identify and describe the pressures
    to the environment stemming from the latest
    state-of-the-art energy conversion technologies.
  • Task 2.2 to describe the current
    state-of-the-art methodology to estimate external
    costs.
  • Task 2.3 to incorporate the methodology to cover
    land use change, acidification and
    eutrophication, visual intrusion and climate
    change into the methodology to generate external
    cost estimates and into the ECOSENSE tool to
    calculate marginal external costs.
  • Continue

38
WP2 Human Health Related External Costs
  • Task 2.4 to demonstrate the application of the
    methodology, by estimating external costs for the
    different technologies at specific sites in
    Germany.
  • Task 2.5 to organise a joint WPs 2-7 workshop
    for stakeholders, to discuss the methodology to
    calculate external and private costs and the
    results for selected sites.

39
EcoSense Flowchart
Emission inventory
Air Quality Modelling
Valuation
Impact Assessment
Local Model
primary pollutants, local scale
Physical impacts
Concentration / Deposition fields
(e.g. increased mortality, crop losses)
  • Emissions (NOx, SO2, NH3, NMVOC, primary
    particles...) according to
  • Source
  • Location

WTM

primary pollutants and acid species, regional
scale
Dose-effect models
Environmental damage costs
Receptor distribution
Monetary unit values
-
population
-
crop yield
-
building materials
SROM
Ozone formation, Regional scale
40
Description of Work Packages
  • WP3
  • Non Human Health Related Environmental Costs of
    Different Energy Sources

41
WP3 Non human health related environmental costs
  • WP3 objectives
  • To update the estimates of non-human health
    related environmental costs of different energy
    sources based on life cycle impacts for EU and
    non-EU countries with specific attention to new
    impacts (acidification, eutrophication and
    visual intrusion)
  • To discuss and confirm ranges of estimates of
    environmental costs with representatives of
    industry.

42
WP3 Non human health related environmental costs
  • WP3 partners
  • VU-IVM, Institute for Environmental Studies of
    the Free University, Amsterdam (WP coordinator)
  • Sweco Grøner, E-Co Tech Ås, Norway
  • UW, Wageningen University

43
WP3 Non human health related environmental costs
  • WP3 Description of work
  • This WP provides a critical review and updates
    external cost estimates of energy-related impacts
    on land use change, acidification,
    eutrophication, visual intrusion and climate
    change across Europe and for selected non-EU
    countries.
  • Jointly with WP2 and WPs4-7, research findings
    are presented and discussed in a stakeholder
    workshop. Results on land use change,
    acidification, eutrophication, visual intrusion
    and climate change are shared with the
    coordinator of WP2 to be included in the ECOSENSE
    model.

44
WP3 Non human health related environmental costs
  • VU-IVM
  • reviews and updates monetary estimates of
    energy-related land use change and climate change
    impacts
  • contributes to the review and update of monetary
    estimates of impacts on aquatic ecosystems
  • prepares a database on studies concerning
    external cost estimates of land use changes,
    acidification, eutrophication and climate change.
  • Continue

45
WP3 Non human health related environmental costs
  • Sweco Grøner
  • reviews and updates monetary estimates of
    acidification impacts on freshwater fish, and
    impacts of eutrophication on use values and
    non-use values, and estimates of landscape
    aesthetic impacts of renewable energy
  • provides a state-of-the art review of valuation
    studies on these topics and a discussion on
    benefit transfer methods for these values.
  • UW
  • studies the impacts of various emissions related
    to energy systems
  • focuses on the impacts of acidifying compounds on
    terrestrial ecosystems, including agriculture.

46
Description of Work Packages
  • WP4
  • Private Costs of Electricity and Heat Generation

47
WP 4 Private Costs
  • WP4 objectives
  • Determine the private costs for electricity and
    heat generation of different technologies for
    selected countries
  • Overview of existing heating technologies and
    electricity generation plants in previous
    studies.
  • Updating to the state-of-the-art technologies and
    extending with technologies under development.
  • Determination of the levelised lifetime cost of
    the heat and electricity generation technologies.
  • Accomplishment of some sensitivity analysis for
    different
  • load factors
  • workers salaries and
  • annual energy production.

48
WP 4 Private Costs
  • WP4 partners
  • USTUTT/IER, University of Stuttgart Institute
    of Energy Economics and the Rational Use of
    Energy (WP coordinator)
  • VITO, Flemish Institute for Technological
    Research
  • COPPETEC, Fundação COPPETEC
  • IIMA, Indian Institute of Management Ahmedabad
  • ERI, Energy Research Institute, China
  • EAP, Energy Agency of Plovdiv, Bulgaria
  • TUBITAK, Turkiye Bilimsel ve Teknik Arastirma
    Kurumu - Marmara Research Center, Institute of
    Energy

49
WP 4 Private Costs
WP4 description of work - overview of
technologies (proposed by WP leader)
50
WP 4 Private Costs
  • Components of static social cost for electricity
    generation
  • (From EUSUSTEL project)
  • global external costs due to
  • specific emissions
  • other external life cycle cost
  • costs of system integration due to
  • stochastic wind, solar and hydro power supply
  • spatial distribution, share of total generation
  • private generation cost
  • from an overall system oriented point of view
  • Average Lifetime Levelised Electricity Generation
    Cost
  • Solve for the price that makes costs equal to
    revenue over the lifetime of the project
  • from an investors point of view additional
    premium due to risks in liberalised markets (e.g.
    electricity prices, economics, regulatory and
    political factors) should be considered

51
Description of Work Packages
  • WP5
  • Externalities of Energy Security

52
WP5 Externalities of Energy Security
  • WP5 objectives
  • To derive estimates of externalities related to
    energy supply insecurities for EU and other
    selected countries
  • To use estimates of externality costs in policy
    assessment of measures addressing energy security
    in the EU and other selected countries.

53
WP5 Externalities of Energy Security
  • WP5 partners
  • UBATH, University of Bath (WP coordinator)
  • ECN, Energy Research Centre of the Netherlands
  • CEPS, Centre for European Policy Studies

54
WP5 Externalities of Energy Security
  • WP5 description of work
  • University of Bath (WP leader) reviews and
    updates existing estimates of external costs of
    energy insecurity for primary fuels
  • use published outputs of existing macro-economic
    and inter-sectoral models to make estimates of
    the costs of the use of these fuels
  • make predictive estimates of aggregated costs up
    to 2030 for the EU and selected other countries.
  • Energy Research Centre of the Netherlands (ECN)
    critically reviews current estimates of values of
    loss of load (VOLLs) of electricity for EU and
    other selected countries
  • Include costs of recent blackouts in EU and other
    countries (e.g. Italy, UK, Denmark etc)
  • Provide basis for deriving country estimates to a
    time horizon of 2030.
  • Continue

55
WP5 Externalities of Energy Security
  • Energy Research Centre of the Netherlands (ECN)
    and Centre for European Policy Studies, Belgium
    (CEPS) assess the policy options to reduce - and
    insure against - the costs of energy insecurity
  • by comparing costs of a number of policy options
    with the benefits in terms of reduced energy
    insecurity.
  • policy options to include
  • increased maintenance of strategic stockpiles,
  • feed-in tariffs and tradable certificates as
    methods to increase renewable energy sources
    share in the EU energy mix,
  • taxes on fossil fuels,
  • requirements of increased capacity in the
    electricity sector and
  • other market-based instruments.
  • ? Policy recommendations

56
Description of Work Packages
  • WP6
  • National Level Estimates of Energy Costs in EU
    Countries

57
WP 6 National Level Estimates of Energy Costs
in EU Countries
  • WP6 objectives
  • To develop a consistent set of national level
    full costs estimates for the 25 EU countries for
    different energy sources.
  • To develop a comparative full cost assessment and
    a consistency analysis of the set of national
    level full costs estimates.

58
WP 6 National Level Estimates of Energy Costs
in EU Countries
  • WP6 partners
  • FEEM, Fondazione Eni Enrico Mattei (WP
    coordinator)
  • VITO, Flemish Institute for Technological
    Research
  • USTUTT/IER, University of Stuttgart - Institute
    of Energy Economics and the Rational Use of
    Energy
  • UWARS, University of Warsaw
  • LEI, Lithuanian Energy Institute
  • CIEMAT, Centro de Investigaciones Energéticas,
    Medioambientales y Tecnológicas
  • SEI, Stockholm Environment Institute
  • CUEC, Univerzita Karlova v Praze
  • NTUA, National Technical University of Athens

59
WP 6 National Level Estimates of Energy Costs
in EU Countries
  • WP6 Task 6.1 full cost estimation
  • Analysis and Integration of costs A data
    template for private and external estimates is
    developed and filled for each country and for
    each energy source.
  • The marginal costs of different technologies and
    the total external costs are calculated for the
    energy sector by technology for each EU-25
    country.
  • Estimates on costs are dynamic as result of the
    scenarios of energy use for the years 2010, 2020
    and 2030.
  • Full cost calculation The private and external
    cost data are harmonised and assembled in a
    coherent and systematic way to derive the total
    costs estimations.
  • The total cost calculation is extended to the EU
    25 countries.
  • Full cost estimates for each EU country and for
    different energy sources are integrated into a
    dynamic framework, carefully choosing among
    different scenarios.

60
WP 6 National Level Estimates of Energy Costs
in EU Countries
  • WP6 Task 6.2 comparative full cost assessment
  • A comparative full cost assessment is developed
    to identify inconsistencies and structural
    variations in the total costs composition.
  • The full cost estimates are compared across
    countries, to pay particular attention to local
    geographical variations.
  • Private and external costs are integrated within
    one dynamic framework.
  • The most critical parameters that have an
    influence on the total cost estimates are
    identified.

61
Existing literature
New investigations
WP2 Private costs of energy production
WP3 Human health related external costs
WP5 Costs of energy security
WP4 Non-human health related external costs
WP6
WP1 Time dimension
WP12 Uncertainty dimension
Complete cost datasets. Fill in data gaps.
Calculate full (private external) cost for
different energy sources.
Compare full cost across countries. Compare full
cost composition.
62
Description of Work Packages
  • WP7
  • National Level Estimates of Energy Costs in Non
    EU Countries

63
WP7 National Level Estimates of Energy Costs in
Non EU Countries
  • WP7 objectives
  • Develop a methodological framework for the
    extraction of private and social costs of energy
    fuel cycles in a set of non EU countries
  • Derive new insights into the costs of fuel cycles
    in EU as compared to the group of non EU
    countries
  • The group on non EU collaboration countries
    Brazil, Bulgaria, China, India and Turkey.

64
WP7 National Level Estimates of Energy Costs in
Non EU Countries
  • WP7 partners
  • RISOE, Risoe National Laboratory (WP coordinator)
  • COPPETEC, Fundação COPPETEC, Brasil
  • IIMA, Indian Institute of Management Ahmedabad
  • ERI, Energy Research Institute, China
  • EAP, Energy Agency of Plovdiv
  • TUBITAK, Turkiye Bilimsel ve Teknik Arastirma
    Kurumu - Marmara Research Center, Institute of
    Energy

65
WP7 National Level Estimates of Energy Costs in
Non EU Countries
  • WP7 description of work
  • Estimates of private and social costs
  • Twentyfive years time frame
  • Based on available fuel cycle cost assessments
    for the collaboration countries.
  • Two fuel cycles in each country
  • Special focus on social costs of human health
    impacts from pollution
  • Fuel cycles considered as of yet
  • Brazil Renewable energy options and ethanol for
    transportation (COPPETEC)
  • Bulgaria Fossil fuel based power production and
    renewable energy (EAP).
  • China Coal and biomass or other renewable
    (ERI)
  • India Coal and ethanol for transportation (IIMA)
  • Turkey Coal and biodiesel (TUBITAK)

66
WP7 National Level Estimates of Energy Costs in
Non EU Countries
  • Challenges in harmonizing computations to ExternE
    standards
  • Differences across developed and developing
    countries arise in
  • Issues related to incomplete markets,
    inefficiencies and informal sectors
  • The kinds of externalities that arise
  • The relative magnitude of impact from similar
    kinds of externalities
  • Data availability
  • Modelling issues
  • Valuation issues

67
WP7 National Level Estimates of Energy Costs in
Non EU Countries
  • Challenges in monetarisation of damages in
    developing countries
  • Final estimate of costs associated with e.g. the
    use of coal are context specific.
  • Challenges are inherent to
  • Data constraints
  • Modelling issues
  • Valuation issues

68
Description of Work Packages
  • WP8
  • Assessment of Policy Instruments to Internalise
    Environment-Related External Costs in EU Member
    States, Excluding Renewables

69
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • WP8 objectives
  • Comparative assessment of investment and
    operational costs of different energy options
    taking account of only private costs and taking
    account of private plus external costs.
  • Impact of the use of different methods of
    decision-making on the selection of projects -
    e.g. cost-benefit analysis with externality
    adders versus multi-criteria decision analysis
    tools.
  • Implications of different taxes/charges on energy
    and/or on emissions on (a) the degree of
    internalisation and (b) the comparative cost
    comparisons, now and in the future.
  • Continue

70
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • Implications of different policies to reduce
    energy insecurity on (a) the degree to which
    energy security concerns are internalised and (b)
    the comparative costs of different energy
    sources, now and over time.
  • Comparison of the effectiveness of emissions
    trading instruments for internalising
    externalities versus the use of externality based
    taxes.
  • Comparison of different instruments to promote
    renewable energy sources, in terms of the degree
    to which they internalise the positive
    externalities associated with renewable energy
    use.

71
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • WP8 partners
  • VITO, Flemish Institute for Technological
    Research (WP coordinator)
  • FEEM, Fondazione ENI Enrico Mattei
  • NTUA, National Technical University of Athens
  • ISIS, Istituto di Studi per lIntegrazione dei
    Sistemi
  • PSI, Paul Scherrer Institut

72
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • WP8 methodology
  • WPs 8-10 share a common investigation
    methodology
  • First, they look at a taxonomy of policy
    instruments (taxes, permits, emissions trading
    system, feed in tariffs, tradable emissions
    certificates, etc.) currently available and
    discussed in the energy arena.
  • Second, they consider how successful the
    different instruments are in internalising the
    external costs of energy production and in
    promoting the use of renewables.
  • WPs 8-10 will have a dynamic outlook by comparing
    policies at the current time and in the future,
    considering the energy use scenarios identified
    in WP 1 and the uncertainties assessed in WP 12.

73
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • WP8 description of work
  • Task 8.1 Synopsis of all relevant policy
    instruments (taxes, permits, command and control,
    voluntary agreements, etc.) for non-renewable
    energy sources and systems used by EU Member
    States. Synergies with WP 9 and WP 10 are
    exploited.
  • Task 8.2 Analysis of the extent to which
    different policy instruments succeed to
    internalise external costs of fossil fuels and
    nuclear energy with reference to 2010, 2020, 2030
    scenarios of energy use provided by WP1. A
    comparative full cost assessment is undertaken
    emphasising the comparison of nuclear and fossil
    fuels.
  • Continue

74
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • Task 8.3 Analysis of policy linkages for fossil
    fuels use reduction and GHG emissions trading
    regimes.
  • Task 8.4 Development of suggestions to improve
    the instruments for reducing negative social and
    fiscal impacts while increasing their power to
    achieve an extensive internalisation of the
    external costs of the use of fossil fuels and
    nuclear energy and of a suggestion for an
    integrated EU policy for the external costs of
    fossil fuels and nuclear energy. Finally, an
    analysis of the hidden costs of the
    implementation of different policy instruments
    for internalisation of external costs of fossil
    fuels and nuclear energy is carried out. D.8.1
    WP8 Report on the assessment of policy
    instruments.

75
WP8 Assessment of policy instruments to
internalise environment-related external costs in
EU Member States, excluding renewables
  • Criteria for analysis
  • 1. Efficiency of allocation
  • how far ? (MCMB or equal total cost)
  • 2. Cost efficiency
  • who does the efforts ? (MCaMCb)
  • 3. Dynamic efficiency
  • stimulate clean technologies
  • 4. Verifiability measurement
  • 5. Political practicability

76
Description of Work Packages
  • WP9
  • Policy Assessment of Instruments to Internalise
    Environment Related External Costs in EU Member
    States, via Promotion of Renewables

77
WP9 Policy Assessment of Instruments to
Internalise Environment Related External Costs in
EU Member States, via Promotion of Renewables
  • WP9 objectives
  • Provide overview of instruments used to stimulate
    the use of renewables
  • Compare different instruments with respect to
    degree of internalisation achieved
  • Analyse social and fiscal implication of
    different instruments especially on poor and
    vulnerable groups
  • Suggest modifications to minimize negative and
    maximise positive impacts
  • Analyse hidden costs of implementation
  • Investigate stakeholder preferences

78
WP9 Policy Assessment of Instruments to
Internalize Environment Related External Costs in
EU Member States, via Promotion of Renewables
  • WP9 partners
  • UFLENS, University of Flensburg (WP coordinator)
  • FEEM, Fondazione ENI Enrico Mattei
  • NTUA, National Technical University of Athens
  • RISOE, Risoe National Laboratory

79
WP9 Policy Assessment of Instruments to
Internalise Environment Related External Costs in
EU Member States, via Promotion of Renewables
  • WP9 tasks
  • Synopsis of all relevant policy instruments
  • Analysis of extent of success of internalisation
  • Analysis of extent of future success 2010, 2020,
    2030
  • Analysis of linkages between Renewable Energy
    policies and GHG emissions trading
  • Analysis of social and fiscal implications
  • Development of suggestions to improve policy
    measures
  • Development of a suggestion of an integrated EU
    policy
  • Analysis of the hidden costs of implementation

80
Description of Work Packages
  • WP10
  • Assessment of Policy Instruments to Internalise
    Environment-Related External Costs in non-EU
    Member States

81
WP10 Assessment of policy instruments to
internalise environment-related external costs in
non-EU Member States
  • WP 10 objectives
  • To assess policy instruments to internalise
    externalities in non EU Member States, via
    promotion of renewables, focusing on Turkey,
    Bulgaria, India, China and Brazil
  • To investigate stakeholders preferences for
    policy instruments to promote renewable energy
    sources through Stakeholders Workshop 2 (together
    with WPs 8-11).

82
WP10 Assessment of policy instruments to
internalise environment-related external costs in
non-EU Member States
  • WP 10 partners
  • UBATH, university of Bath (WP leader)
  • NTUA, National Technical University of Athens
  • COPPETEC, Fundação COPPETEC
  • IIMA, Indian Institute of Management Ahmedabad
  • ERI, Energy Research Institute
  • EAP, Energy Agency of Plovdiv
  • TUBITAK, Turkiye Bilimsel ve Teknik Arastirma
    Kurumu - Marmara Research Center, Institute of
    Energy

83
WP10 Assessment of policy instruments to
internalise environment-related external costs in
non-EU Member States
  • WP 10 structure of work
  • Task 10.1 Synopsis of policy instruments for the
    promotion of renewables in non-EU Countries
    (UBATH)
  • Task 10.2 Comparison of instruments used in
    non-EU Countries with those used in EU-Countries
    for the internalisation of externalities in the
    production of energy (UBATH)
  • Task 10.3 Analysis of the extent to which
    different policy instruments succeed in
    internalising the net external benefits of
    renewables in year 2010, 2020, 2030 (UBATH).
  • Continue

84
WP10 Assessment of policy instruments to
internalise environment-related external costs in
non-EU Member States
  • Task 10.4 Analysis of the social and fiscal
    implications of different internalisation
    instruments, focusing on the impacts on the most
    vulnerable groups in society and on the fiscal
    burdens created by some instruments working
    through positive incentive schemes on the basis
    of government payments (UBATH - TUBITAK).
  • Task 10.5 Suggestions to reduce negative social
    and fiscal impacts of instruments while
    increasing their power to achieve an extensive
    internalisation suggestions for an integrated EU
    policy for the internalisation of the positive
    net external benefits of renewables analysis of
    the hidden costs of the implementation of
    different policy instruments for the
    internalisation of net external benefits of
    renewables (UBATH).

85
Description of Work Packages
  • WP11
  • Methods of Assessment

86
WP11 Methods of assessment
  • WP11 objectives
  • To perform a comparative analysis of policy
    assessment methods and identify common grounds
    and linkages
  • To provide guidelines for the dynamic
    implementation of policy assessment methods
  • To provide tools and support for implementing
    methods in WPs 8-10 with the involvement of
    energy suppliers and other stakeholders
  • To estimate implied monetary equivalents for
    non-monetised impacts.

87
WP11 Methods of assessment
  • WP11 partners
  • NTUA, National Technical University of Athens (WP
    coordinator)
  • UBATH, University of Bath
  • VITO, Flemish Institute for Technological
  • UFLENS, University of Flensburg

88
WP11 Methods of assessment
  • CBA
  • Stems from neoclassical economics
  • The market as guided by individual preferences
    secures optimal allocation
  • Money is the appropriate vehicle to express these
    preferences
  • If stated preferences are missing, use of
    hypothetical or surrogate markets.
  • Decision Aggregation of costs/benefits expressed
    in monetary terms.

Overview of methods
  • MCDA
  • Stems from social sciences (decision-behavioral
    analysis)
  • Humans do not always value environmental goods
    as consumers within a market
  • Preferences do not a priori exist in human mind,
    especially for non familiar or non traded goods.
  • A discursive, interactive approach might help
    individuals construct their preferences
  • Decision aggregation of weighted performances or
    outranking of global preferences.

89
WP11 Methods of assessment
  • Formulation of policy problems
  • Clear specification of alternative policy
    instruments to be assessed
  • Which
  • Where
  • When
  • How
  • Identification of evaluation perspectives
  • Cost/benefit component (CBA)
  • Criteria (MCDA)
  • Identification of people concerned.

90
WP11 Methods of assessment
  • WP11 description of work
  • Analysis, description and operationalisation of
    assessment methods
  • Task 11.1 to review Cost-Benefit Analysis (CBA),
    Cost Effectiveness Analysis (CEA), Multi-Criteria
    Decision Analysis (MCDA) techniques/tools and
    successful applications in energy and
    environmental policy making.
  • Task 11.2 to set up guidelines for using CBA,
    CEA and MCDA in policy assessment, with emphasis
    on integrating dynamic aspects in multi-criteria
    assessment.
  • Continue

91
WP11 Methods of assessment
  • Task 11.3 to set up tools for implementing
    assessment methods in an interactive and dynamic
    way. These tools are developed in a generic form
    assuming a number of alternative policy
    instruments evaluated along a number of aspects.
    The CBA-CEA tool provides rankings of instruments
    according to external cost estimates and discount
    rates. The MCDA tool provides rankings of
    instruments according to the preferential input
    of stakeholders. In both cases a sensitivity
    analysis indicates the robustness of the obtained
    results.
  • Task 11.4 to extend and improve the methodology
    for deriving monetary equivalents for
    non-monetised impacts through individual
    preferences elicited in MCDA.
  • Continue

92
WP11 Methods of assessment
  • Task 11.5 to organise a seminar for WPs 8-10
    partners to validate methods and user guidelines.
  • Task 11.6 to adapt the tools to the specific
    context and data of WPs 8-10, testing the tools
    through electronic communication and in partners
    meetings.
  • Task 11.7 to participate in stakeholders
    workshop 2 and to elaborate results providing
    policy input.

93
Description of Work Packages
  • WP12
  • Treatment of Uncertainty in Estimates of External
    Costs at the National Level

94
WP12 Uncertainties
  • Objectives
  • To evaluate the uncertainties of the costs (both
    private and external) estimated in this project
  • To evaluate the effect of these uncertainties on
    policy decisions, e.g. choice of energy
    technologies, choice of emission limits, and the
    resulting emission levels
  • To evaluate the social costs if the wrong policy
    choices are made because of errors or
    uncertainties in the estimation of the costs
    estimated in this project
  • To evaluate the benefit of reducing the
    uncertainties by further research (to help
    identify the priorities for such research).

95
WP12 Uncertainties
  • WP12 partners
  • ECN, Energy Research Centre of the Netherlands
    (WP coordinator)
  • FEEM, Fondazione ENI Enrico Mattei

96
WP12 Uncertainties
  • Description of work
  • Task 12.1 to review, update and complete the
    estimation of uncertainties (ECN, FEEM). This
    task begins by reviewing the existing uncertainty
    estimates and updating them as necessary. The
    extension of the external cost calculations to
    countries outside the EU entails additional
    uncertainties that will be evaluated, in
    particular with regard to monetary valuation.
    Uncertainties are also estimated for private
    costs here both energy prices and abatement
    costs need to be considered.
  • Task 12.2 to assess the effect of the
    uncertainties on different levels of
    internalisation (ECN, FEEM). Tradable permits
    that are given away free make the polluters
    reduce their emissions to the social optimum, but
    without paying anything for the damage caused by
    the residual emissions. By contrast, pollution
    taxes and tradable permits that are auctioned by
    the government make the polluter pay not only the
    abatement cost to reach the optimum but also the
    residual damage the difference in cost to the
    polluter is large. The monetary transfers and the
    effects on the economy are therefore much larger
    in the latter case than in the former, and so are
    the consequences of errors in the estimation of
    the external costs.
  • Continue

97
WP12 Uncertainties
  • Task 12.3 to evaluate effect of uncertainties on
    energy choices (ECN, FEEM). Errors in the
    estimation of the external costs could lead to
    inappropriate energy choices, for example too low
    a level of renewable energy sources. Since the
    evaluation of energy choices is a difficult and
    complex undertaking, we will attempt to provide
    at least some initial estimates.
  • Task 12.4 to evaluate benefit of reducing the
    uncertainties by further research (ECN, FEEM).
    Previous research has evaluated how much the
    social cost of air pollution abatement is
    increased beyond the optimum if an error is made
    in the estimation of the damage cost or the
    abatement cost curve. This social cost penalty
    can be reduced by further research aimed at
    reducing the uncertainties of the respective cost
    estimates. By examining the relation between a
    measure of the uncertainty (e.g. geometric
    standard deviation) and the social cost penalty,
    the value of such research will be quantified. To
    help identify the priorities the various sources
    of uncertainties are ranked in terms of their
    contribution to the total.

98
Description of Work Packages
  • WP13
  • Management and Coordination

99
WP13 Management and Coordination
  • Objectives
  • To ensure the efficient co-ordination and
    management of the project, both in terms of
    scientific co-ordination and administrative
    management
  • To review and assess project results and progress
    towards the objectives
  • To carry out full communication and dissemination
    on the project activities and findings.

100
WP13 Management and Coordination
  • WP13 partners
  • FEEM, Fondazione ENI Enrico Mattei (project
    coordinator)
  • UBATH, University of Bath (deputy coordinator)

101
WP13 Management and Coordination
  • Description of work
  • Task 13.1 Project management and coordination
    activities
  • overall legal, contractual and administrative
    management maintenance of the Consortium
    Agreement management of the financial flows
    between the Commission and the consortium
    co-ordination of knowledge management issues
    overall co-ordination of the technical activities
    of the project (FEEM and UBATH)
  • project reporting
  • 12months and 30months Activity and Management
    Reports
  • 24months Summary Activity Report (ALL PARTNERS).
  • Continue

102
WP13 Management and Coordination
  • Task 13.2 Project review and assessment
  • monitoring of project implementation, review and
    assessment of project results and progress
    towards the objectives (ALL PARTNERS).
  • organisation of project meetings
  • Kick-off Meeting (month 2, FEEM)
  • Mid-term Project Meeting (month 14, FEEM)
  • 3 Project Steering Committee Meetings (month 18,
    IER, month 25, VITO and month 29, ISIS)
  • Continue

103
WP13 Management and Coordination
  • Task 13.2 Project communication and
    dissemination activities
  • development and update of a Plan for using and
    disseminating knowledge (month 6, ALL)
  • development and update of a Projects
    communication action plan (month 6, ALL)
  • establishment and maintenance of a dedicated web
    site, production of scientific contents,
    publication of project findings and reports,
    linking with partner web sites, etc (FEEM and
    ALL).
  • establishment of links with other EU and
    international initiatives (in particular, with
    the NEEDS consortium through active participation
    to the NEEDS Fora) (ISIS and ALL).
  • publication of working papers, a book (FEEM),
    articles in peer-reviewed scientific journals,
    and project presentations at international
    conferences (ALL).

104
Outline of the presentation
  • What is CASES
  • Context
  • Objectives
  • Expected results
  • Interaction with other projects
  • The actors
  • Organisation of work
  • Description of Work Packages
  • Description of dissemination activities

105
Description of dissemination activities
  • Dissemination of research outputs is a key
    objective to maximize the impact of the project
    activities.
  • The dissemination strategy will be implemented
    through a range of means to reach the highest
    number of end-users.
  • Target EU/international research community,
    policy sphere, business, public at large.

106
Description of dissemination activities
  • Dissemination means
  • Interactive web site
  • Electronic Mailing List
  • Electronic Newsletter
  • Project events 2 Stakeholders Workshops and the
    Final Conference
  • Other conferences and workshops, seminars
  • Publications

107
Description of dissemination activities
  • Interactive website
  • Intranet service
  • To ensure intra-partnership communication on
    project related issues
  • External dissemination
  • Project-related information (partners details,
    project activities and results, deliverables,
    workshops,)
  • Useful links, policy docs, list of stakeholders
  • Forum
  • Subscribe Electronic Newsletter and Mailing list

108
Description of dissemination activities
  • Electronic mailing list
  • Prompt, up-to-date and simple communication on
    project news
  • Target project partners, organization outside
    the consortium expressing interest in the
    initiative (business, policy, public)
  • Electronic news letter
  • 6-month update on the progress of the project,
    with direct links to project outputs posted on
    the web
  • Target academy, policy-makers, business, public
    at large

109
Description of dissemination activities
  • Project events
  • Stakeholders Workshops
  • At least 2 Workshops are organised in order to
    confront preliminary results of the network with
    academic excellence and key stakeholders and
    end-users outside the network.
  • Final Conference
  • At the end of the project a Final Conference
    (month 29, ISIS) is organised to present the
    results of the network to the academic, policy
    and business communities and civil society
    organisations.

110
Description of dissemination activities
  • Other events
  • Conferences and workshops
  • The partners will participate to other
    scientific and policy meetings (national and
    international workshops and conferences) in order
    to present the project and its preliminary and
    final results, both during and after the end of
    the project.

111
Description of dissemination activities
  • Publications
  • FEEM Working Paper series (Economic Research
    Institutes Paper Series of SSRN, RePEc, Econlit)
  • Peer-reviewed scientific journals
  • Book

112

corso Magenta 63 20123 Milano - Italy tel 39
02 5203.6934 fax 39 02 5203.6946 web http/
/www.feem.it
Write a Comment
User Comments (0)