Andrea Ricci – 7 April 2006

NEEDSNEEDSNew Energy Externalities Developments for SustainabilityNew Energy Externalities Developments for Sustainability

SIXTH FRAMEWORK PROGRAMME [6.1]

[ Sustainable Energy Systems]

Policy Advisory GroupPolicy Advisory GroupFirst meeting – Rome, 7 April 2006First meeting – Rome, 7 April 2006

Andrea Ricci – 7 April 2006

NEEDS: an Integrated Project of FP6

Duration: 48 months, starting September 2004 66 partners (15% are SMEs), representing Universities, Research

Institutions, Industry and NGOs from 27 Countries (19 EU members, 3 MED, 5 ‘Other’)

Leading partners: ISIS (IT) - CoordinatorDLR (DE) IER Stuttgart (DE)OME (FR)Uni Prague (CZ)CNR-IMAA (IT)PSI (CH)ECO (NO)

1118 person.months

Andrea Ricci – 7 April 2006

Overall objective

To evaluate the full costs and To evaluate the full costs and benefits (i.e. direct + external) of benefits (i.e. direct + external) of

energy policiesenergy policies and of and of future future energy systemsenergy systems, both at the level , both at the level of individual countries and for the of individual countries and for the

enlarged EU as a wholeenlarged EU as a whole

Andrea Ricci – 7 April 2006

Policy relevanceof external cost accounting

• Supply side policies (infrastructure, other products and services)– Extended accounting framework for CBA– Comparison between alternative investment

options (differential values)

• Demand side policies (regulation, pricing and taxation)– Mitigation/abatement– Internalisation (absolute values)

Andrea Ricci – 7 April 2006

Examples of input to EU policies

• Directive on non-hazardous waste incineration

• Large Combustion Plant Directive• EU strategy to combat acidification• National Air Quality Strategy• Emission Ceilings Directive• Infrastructure charging (Eurovignette)• Etc.

Andrea Ricci – 7 April 2006

Objectives and main focus

Life Cycle Assessment (LCA) of energy technologies analysis of new energy technologies options for which the current

LCA knowledge is insufficient

Monetary valuation of externalities associated to energy production, transport, conversion and use, targeting major innovation in terms of:

methods impacts so far insufficiently addressed the availability and reliability of quantitative evidence

Development of a consistent and robust analytical platform allowing to integrate the full range of information and data on LCA and external costs into a Pan-European modelling framework

Andrea Ricci – 7 April 2006

Objectives and main focus (2)

Acceptability and stakeholders perspective To identify the terms and conditions for an effective

formulation and implementation of long term strategies based on the internalisation of external costs

To examine the robustness of the research results under various stakeholder perspectives

Transferability and generalisation to develop a simple way of calculating, transferring and

present the uncertainty of default values for average/aggregate external costs

Integration To develop a structured “protocol” to facilitate the

widespread use of the integrated analysis framework

Andrea Ricci – 7 April 2006

Andrea Ricci – 7 April 2006

LCA: main targeted innovation

Key challenge: to provide sound life cycle inventory data (as a basis for external cost assessment) for technologies in the far future (2030 – 2050)

• advanced fossil fuels• hydrogen technologies• fuel cells• offshore wind• photovoltaic• concentrating solar thermal power plant• biomass• advanced nuclear• wave energy• background processes

Focus on electricity generation technologies:

Andrea Ricci – 7 April 2006

NEEDS Stream 1 b

Improvement of atmospheric modelling at hemispheric, European, local scale

Soil and water pathways (food, toxic substances)

Valuation of external costs:main targeted innovation

Exposure-response-relationships for human health Assessment of biodiversity changes

Assessment of climate change

Valuation of mortality and morbidity

Andrea Ricci – 7 April 2006

To develop an energy-environmental model, technology oriented and based on economic equilibrium, which allows for both a worldwide perspective and a disaggregation for Europe and within the Member States and Accession Countries

To incorporate the results from LCA and ExternE (the most important emissions, materials and damage functions), including them in their long term development

To compare scenarios that simulate various policy approaches (setting thresholds for CO2 emission, renewables penetration, etc.) using the key base data received form the other streams to calculate equilibrium quantities and prices.

Modelling: main targeted innovation

Andrea Ricci – 7 April 2006

Ultimate objective: broadening the basis for decision support beyond the assessment of external costs.

through

Experimenting complementary approaches allowing direct involvement of stakeholders

Testing the acceptability of results based on external cost assessment by stakeholders

Acceptability and stakeholders perspective: main targeted innovation

Andrea Ricci – 7 April 2006

• To explore to what extent the stakeholders accept the assessed external costs.

• To address and evaluate sustainability of candidate technologies (and/or technology mixes) under economic, environmental and social criteria.

• To investigate the sensitivity of results of sustainability assessment to specific patterns in stakeholder preferences.

• To examine possible differences in the ranking of options established by employing alternative approaches to the evaluation.

• To identify most robust technological options and prioritised developments for the promising but less robust ones.

Acceptability and stakeholders perspective: specific objectives

Andrea Ricci – 7 April 2006

Establishment of sustainability criteria and indicatorssurveysocial criteria (underdeveloped)

Quantification of indicators

Establishment of technology roadmapMCDA approachEvaluations and analysis integration

Stakeholder perspectivesacceptability of monetary valuation and role in policy

making processsurveys

Acceptability and stakeholders perspective: approach

Andrea Ricci – 7 April 2006

Integration into policy and decision making

Long term perspective• Future technologies

Andrea Ricci – 7 April 2006

Integration into policy and decision making

Long term perspective• Future technologies• Dynamic LCA (time- and scenario-dependent)

Andrea Ricci – 7 April 2006

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fuel cell

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Germany

RS1a RS1b

technology specific external costs per unit electricity generation

(Excel format) (Excel format)

€/kWh

LCA of individual technologies External costs per unit emission

Time dependency

Scenario dependency

Andrea Ricci – 7 April 2006

Stakeholders involvement in NEEDS

From the 1° Annual Review of NEEDS:“The Consortium should:

• Identify key users of the project products and engage with them

• Define scenarios and a precise policy case, based on preoccupations of the policy community […]

• […] organise engagement and reflection with the policy community in the European institutions and in Members States”

Andrea Ricci – 7 April 2006

Stakeholders involvement in NEEDS

Community of users

• Energy demand (Industry, Households)• Energy supply (Producers, Distributors)• NGOs/Associations (National, European)• Decision makers (European, national, regional)• Researchers/consultants• Authorities• Energy & Environmental Agencies

Andrea Ricci – 7 April 2006

Stakeholders involvement in NEEDS

The NEEDS “fora” The Policy Advisory Group The NEEDS policy workshops Stakeholders surveys (Stream 2b: acceptability

and stakeholders perspective) Other dissemination, communication and liaison

instruments• Website• Newsletters• Direct communication

Andrea Ricci – 7 April 2006

Calendar of main events

First FORUM (Brussels, 2005)- Setting the scene First Policy Workshop (Rome, April 2006): discussion and

validation of scenarios Second Policy Workshop (Ljubljana, December

2006/January 2007): feedback from the stakeholders surveys on acceptability and impacts of internalisation

Second FORUM (Krakow, June 2007): security of energy supply

Third FORUM (Cairo, November 2007): energy externalities in the Mediterranean Countries

Third Policy Workshop (Zurich t.b.c., March 2008) Fourth FORUM (Brussels, june 2008): Final NEEDS

conference