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External Costs in CEEC Countries: Valuation of Renewable Energy External Cost

Explore external costs in CEEC and valuation of external cost associated with renewable energy. Focus on renewable fuel technologies, electricity and heat generation in CR, projection of generation costs and external costs calculation using ExternE methodology.

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External Costs in CEEC Countries: Valuation of Renewable Energy External Cost

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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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