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Jan MELICHAR Charles University Environment Center NEEDS Forum 3 - Cairo January 28 , 200 8

T he external costs calculation in CEEC countries focusing on valuation of external cost associated with RE. Jan MELICHAR Charles University Environment Center NEEDS Forum 3 - Cairo January 28 , 200 8. Content. Electricity and heat generation in CEE countries

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Jan MELICHAR Charles University Environment Center NEEDS Forum 3 - Cairo January 28 , 200 8

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  1. The external costs calculation in CEEC countries focusing on valuation of external cost associated with RE Jan MELICHAR Charles University Environment Center NEEDS Forum 3 - Cairo January28, 2008

  2. Content • Electricity and heat generation in CEE countries • Focus on combustible renewables in CR • Private and external cost of power plants in CR • Biomass and biogas fuel technologies • Conclusions

  3. Gross electricity generation, by country, by fuel, 2005 (%) – selected CEE countries TWh • 44.4 • 59.4 • 35.8 • 31.5 • 82.6 Source: OECD and IEA 2007

  4. Gross electricity generation, by country, by fuel, 2005 (%) – selected SEM countries TWh • 13.7 • 22.6 • 108.7 Source: OECD and IEA 2007

  5. Gross electricity production from combustible fuels in the Czech Republic, 2006 (%) Source: OECD and IEA 2007

  6. Gross heat production from combustible fuels in the Czech Republic, 2006 (PJ) Source: OECD and IEA 2007

  7. Trends in electricity generation in CR (TWh, %) OECD and IEA 2005

  8. The future importance of combustible renewables in CR • EC Directive 2001/77 on the support of electricity from renewables • renewable energy should account for 8% (as an indicative target) of gross electricity consumption by 2010 • Electricity from renewables should increase twofold • from 4,48% in 2005 up to 8 % in 2010 • 2/3 of electricity production is contributed by large hydropower station • is strongly dependent on uncertain weather condition • For solar and wind power are not the best condition • Biomass is the best suited renewable source

  9. Projected generation costs at 5% discount rate (2005, c€/kWh) • -0.3 • 2.0 • 2.5 • 2.6 • 2.6 • 3.1 • 3.5 • 3.9 • 4.2 • 4.3 • 7.2 • 7.8 • 129.2 OECD and IEA 2005

  10. Fossil and biomass fuel cycles in CR I. Electricity generation • Hard, brown, lignite coal fired power • Natural gas fired power plant • Heavy oil fired power plant • Energogas fired power plant • Biofuel fired power plant II. Heat production • Hard, brown, lignite coal fired power • Natural gas fired power plant • Heavy oil fired power plant • Biomass heating plant

  11. External costs calculation • Using ExternEmethodology – one single energy technology • EcoSense v4.1 software tool • 2003 emission and reference technology data • External costs of operation phase is covered • Impact categories: human health, buildings, crops, climate change • Pollutants: PM10, SO2, NOx, CO2, sulphates, nitrates, O3

  12. Biogas technologies

  13. Biomass heating plants

  14. External costs from electricity generation in the Czech Republic (2005, c€/kWh) • 0.03 • 0.12 • 0.12 • 0.88 • 1.05 • 1.94 • 3.24 • 3.75 • 5.38 • 6.70 • 6.73

  15. External costs from heat production in 2005 (€/GJ) • 0.63 • 0.78 • 0.81 • 1.21 • 1.34 • 1.37 • 2.43 • 2.62 • 3.07 • 4.38

  16. Conclusions and discussion • Electricity and heat production strongly depend on fossil fuels in CEE countries • Among renewables biomass energy source is suitable in CR • High private costs of renewables compare to fossil fuels and nuclear • Contrary to private costs external are much lower • Need for more sufficient economic instruments in order to support energy production from renewables

  17. Thank you for your attention Jan Melichar jan.melichar@czp.cuni.cz Charles University Environment Center Prague http://cozp.cuni.cz The research on externality calculation for energy sector was done within theIP NEEDS „New Energy Externalities Developments for Sustainability“ and CASES funded by the European Commission.

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