CASES

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CASES Cost Assessment for Sustainable Energy
Systems
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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

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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.

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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.

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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.

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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.

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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.

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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.

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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).

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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
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Organisation of work
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Work plan
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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.
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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.

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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.

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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
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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.

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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.

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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.

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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.

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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.

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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.
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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

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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

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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

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