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CASES – Cost Assessment for Sustainable Energy Systems.

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Presentation on theme: "CASES – Cost Assessment for Sustainable Energy Systems."— Presentation transcript:

1 CASES – Cost Assessment for Sustainable Energy Systems

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

3 Cost Assessment for Sustainable Energy Systems 3 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.

4 Cost Assessment for Sustainable Energy Systems 4 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.

5 Cost Assessment for Sustainable Energy Systems 5 Objectives 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. Detailed Objectives 1.To compile estimates of full costs of the use of different energy sources in EU and selected other countries under agreed energy scenarios to To use resulting datasets to undertake comparative cost assessments of introducing alternative policy options over the time period. 3.To disseminate research findings to energy producers and users and to the policy makers.

6 Cost Assessment for Sustainable Energy Systems 6 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.

7 Cost Assessment for Sustainable Energy Systems 7 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.

8 Cost Assessment for Sustainable Energy Systems 8 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.

9 Cost Assessment for Sustainable Energy Systems 9 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. Former and current projects related to CASES:  Projects focused on External Costs of Energy: ExternE, NewExt, 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).

10 Cost Assessment for Sustainable Energy Systems 10 Partners  The Consortium of the CASES’s Co-ordination Action is composed by twenty-six partners established in twenty States. FEEMIT ISISIT UBATHUK NTUAGR USTUTT/IERDE UFLENSDE VITOBE CEPSBE RISOEDK OMEFR ECNNL VU/IVMNL WUNL CIEMATES SEISE UWARSPL CUECCZ LEILT EAPBG TUBITAKTR SWECONO ECONNO PSICH IIMAIN ERICHN COPPETECBR

11 Cost Assessment for Sustainable Energy Systems 11 Organisation of work

12 Cost Assessment for Sustainable Energy Systems 12 Work plan

13 Cost Assessment for Sustainable Energy Systems 13 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. WP1 description of work Electricity scenarios by country and primary fuel for 2010, 2020, Parameters having direct influence on the evolution of electricity demand. Energy policy and other drivers for power supply options.

14 Cost Assessment for Sustainable Energy Systems 14 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) and 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.  Organisation of a joint WP2-7 stakeholder workshop. WP2 partners  USTUTT/IER – Germany, (Coordinator).  PSI – Switzerland, ISIS – Italy, COPPETEC – Brasil, IIMA – India, ERI – China, EAP – Bulgaria, TUBITAK – Turkey.

15 Cost Assessment for Sustainable Energy Systems 15 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.  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.

16 Cost Assessment for Sustainable Energy Systems 16 EcoSense Flowchart Emission inventory Air Quality Modelling Valuation Emissions (NOx, SO2, NH3, NMVOC, primary particles...) according to Source Location Local Model WTM SROM Concentration / Deposition fields Receptor distribution -population - crop yield -building materials Physical impacts Monetary unit values Environmental damage costs Impact Assessment Dose-effect models (e.g. increased mortality, crop losses) Ozone formation, Regional scale primary pollutants and acid species, regional scale primary pollutants, local scale WP2 – Human Health Related External Costs

17 Cost Assessment for Sustainable Energy Systems 17 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. WP3 partners  VU-IVM – Holland (Coordinator).  Sweco Grøner – Norway and WU – Holland.

18 Cost Assessment for Sustainable Energy Systems 18 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.

19 Cost Assessment for Sustainable Energy Systems 19 WP 4 – Private Costs WP4 objectives  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. WP4 partners  USTUTT/IER – Germany (WP coordinator).  VITO – Belgium, COPPETEC – Brasil, IIMA – India, ERI – China, EAP – Bulgaria, TUBITAK – Turkey.

20 Cost Assessment for Sustainable Energy Systems 20 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. WP5 partners  UBath – United Kingdom (Coordinator).  ECN – Holland and CEPS – Belgium. WP5 description of work  Review and updating of existing estimates of external costs of energy insecurity for primary fuels.  Review of current estimates of values of loss of load (VOLLs) of electricity for EU and other selected countries.  Assessment of 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.

21 Cost Assessment for Sustainable Energy Systems 21 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. WP6 partners  FEEM – Italy (WP coordinator).  VITO – Belgium, USTUTT/IER - Germany, UWARS - Poland, LEI – Lithuania, CIEMAT – Spain, SEI - Swede, CUEC – Czech Republic, NTUA – Greek.

22 Cost Assessment for Sustainable Energy Systems 22 WP2 Private costs of energy productionWP3 Human health related external costs WP6 WP5 Costs of energy security Existing literature WP4 Non-human health related external costs New investigations WP1 WP1 Time dimension WP12 WP12 Uncertainty dimension Compare full cost across countries. Compare full cost composition. Complete cost datasets. Fill in data gaps. Calculate full (private + external) cost for different energy sources. WP 6 – National Level Estimates of Energy Costs in EU Countries

23 Cost Assessment for Sustainable Energy Systems 23 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. WP7 partners  RISOE, Risoe National Laboratory (WP coordinator).  COPPETEC – Brasil, IIMA – India, ERI – China, EAP – Bulgaria, TUBITAK – Turkey. WP7 description of work Estimates of private and social costs  Twenty–five 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

24 Cost Assessment for Sustainable Energy Systems 24 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.  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.

25 Cost Assessment for Sustainable Energy Systems 25 WP8 – Assessment of policy instruments to internalise environment-related external costs in EU Member States, excluding renewables WP8 partners  VITO - Belgium (WP coordinator).  FEEM - Italy, NTUA – Greek, ISIS – Italy, PSI – Switzerland. WP8 description of work  Task 8.1: Synopsis of all relevant policy instruments for non-renewable energy sources and systems used by EU Member States.  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.  Task 8.3: Analysis of policy linkages for fossil fuels use reduction and GHG emissions trading regimes.  Task 8.4: Development of suggestions for an integrated EU policy and to improve the instruments to achieve an extensive internalisation of the external costs of the use of fossil fuels and nuclear energy. 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.

26 Cost Assessment for Sustainable Energy Systems 26 Policy Assessment of Instruments to Internalise Environment Related External Costs in EU Member States, via Promotion of Renewables 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.

27 Cost Assessment for Sustainable Energy Systems 27 Policy Assessment of Instruments to Internalise Environment Related External Costs in EU Member States, via Promotion of Renewables WP9 – Policy Assessment of Instruments to Internalise Environment Related External Costs in EU Member States, via Promotion of Renewables WP9 partners  UFLENS – Germany (WP coordinator).  FEEM – Italy, NTUA – Greek, RISOE – Denmark. WP9 description of work  Synopsis of all relevant policy instruments.  Analysis of extent of success of internalisation and of future success 2010, 2020,  Analysis of linkages between Renewable Energy policies and GHG emissions trading.  Analysis of social and fiscal implications.  Development of suggestions to improve policy measures and for an integrated EU policy.  Analysis of the hidden costs of implementation.

28 Cost Assessment for Sustainable Energy Systems 28 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. WP 10 partners  UBATH – United Kingdom (WP coordinator).  NTUA - Greek, COPPETEC – Brasil, IIMA – India, ERI – China, EAP – Bulgaria, TUBITAK – Turkey.

29 Cost Assessment for Sustainable Energy Systems 29 WP10 – Assessment of policy instruments to internalise environment-related external costs in non-EU Member States WP 10 description of work  Task 10.1: Synopsis of policy instruments for the promotion of renewables in non-EU Countries.  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.  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,  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.  Task 10.5: Suggestions to reduce negative social and fiscal impacts of instruments while increasing their power to achieve an extensive internalisation; analysis of the hidden costs of the implementation of different policy instruments for the internalisation of net external benefits of renewables.

30 Cost Assessment for Sustainable Energy Systems 30 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. WP11 partners  NTUA – Greek (WP coordinator).  UBATH – United Kingdom, VITO - Belgium, UFLENS – Germany.

31 Cost Assessment for Sustainable Energy Systems 31 WP11 – Methods of assessment WP11 description of work  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.  Task 11.3: to set up tools for implementing assessment methods in an interactive and dynamic way.  Task 11.4: to extend and improve the methodology for deriving monetary equivalents for non-monetised impacts through individual preferences elicited in MCDA.  Task 11.5: to organise a seminar for WPs 8-10 partners.  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.

32 Cost Assessment for Sustainable Energy Systems 32 WP12 – Uncertainties WP12 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 and 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. WP12 partners:  ECN – Holland (WP coordinator) and FEEM – Italy. Description of work  Task 12.1: to review, update and complete the estimation of uncertainties.  Task 12.2: to assess the effect of the uncertainties on different levels of internalisation.  Task 12.3: to evaluate effect of uncertainties on energy choices.  Task 12.4: to evaluate benefit of reducing the uncertainties by further research.

33 Cost Assessment for Sustainable Energy Systems 33 WP13 – Management and Coordination WP13 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. WP13 partners  FEEM – Italy (project coordinator)  UBATH – United Kingdom (deputy coordinator) Description of work  Task 13.1: Project management and coordination activities  Task 13.2: Project review and assessment  Task 13.3: Project communication and dissemination activities

34 Cost Assessment for Sustainable Energy Systems 34 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. Dissemination means  Interactive web site –Electronic Mailing List and Electronic Newsletter  Project events –2 Stakeholders Workshops and the Final Conference  Other conferences and workshops, seminars  Publications –FEEM Working Paper series –Peer-reviewed scientific journals –Book

35 Cost Assessment for Sustainable Energy Systems 35 corso Magenta Milano - Italy tel+39 | 02 | fax+39 | 02 | webhttp://www.feem.it


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