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CASES

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Title: CASES


1
CASES 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
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
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
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
  • 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.

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
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
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
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
Partners
  • The Consortium of the CASESs Co-ordination
    Action is composed by twenty-six partners
    established in twenty States.

FEEM IT
ISIS IT
UBATH UK
NTUA GR
USTUTT/IER DE
UFLENS DE
VITO BE
CEPS BE
RISOE DK
OME FR
ECN NL
VU/IVM NL
WU NL
CIEMAT ES
SEI SE
UWARS PL
CUEC CZ
LEI LT
EAP BG
TUBITAK TR
SWECO NO
ECON NO
PSI CH
IIMA IN
ERI CHN
COPPETEC BR
11
Organisation of work
12
Work plan
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, 2030.
Parameters having direct influence on the
evolution of electricity demand.
Energy policy and other drivers for power supply
options.
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
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
WP2 Human Health Related External Costs
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
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
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
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
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
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
WP 6 National Level Estimates of Energy Costs
in EU Countries
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.
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
  • 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

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
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
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
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, 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 and for an integrated EU policy.
  • Analysis of the hidden costs of implementation.

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
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, 2030.
  • 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
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
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
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
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
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 http//www.feem-project.net/
    cases/
  • 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

corso Magenta 63 20123 Milano - Italy tel 39
02 5203.6934 fax 39 02 5203.6946 web http/
/www.feem.it
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