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Externalities of energy: National implementation
Energy research



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n Commission
Community Research
Extern E
Vol. 10
Edith CRESSON, Member of the Commission
responsible for research, innovation, education, training and youth.
DG Xli - Non-Nuclear Energy Programme
Contact: Ms. H.Laval - rue de la Loi, 200 (M075 7/23), B-1049 Brussels
Tel: (32-2) 296 32 55 - Fax (32-2) 299 49 91 - E-mail: huguette.laval@dg12.cec.be
Directorate General XII - Science, Research and Development
LEGAL NOTICE: Neither the European Commission nor any person acting on behalf of the
Commission is responsible for the use which might be made of the following information.
A great deal of additional information on the European Union is available on the Internet.
It can be accessed through the Europa server (http://europa.eu.int).
Cataloguing data can be found at the end of this publication.
Luxembourg: Office for Official Publications of the European Communities, 1999
ISBN 92-828-3723-8
© European Communities, 1999
Reproduction is authorised provided the source is acknowledged.
Printed in Belgium
Directorate-General XII
Science, Research and Development
Extern E
Externalities of Energy
National Implementation
The authors would like to thank the many people who have made possible this report. Firstly,
we would like to thank the partners of the ExternE National Implementation project, who have
provided the bulk of the information presented in this volume. Thanks to them also for the
very helpful comments and discussions provided throughout the project. We would also like
to thank the partners of the ExternE Core project, since without the improvement of
methodological aspects carried out by this project, and their very helpful guidance, it would
have been impossible to complete our task.
The authors would like to thank the European Commission for their financial support for the
project from the JOULE Programme, as well as the additional cofunders who have supported
the work of the national teams. FOREWORD
There is a growing awareness that decision making related to fuel and technology choice for
power generation should take into account all the costs, both internal and external. This is
reflected in a large number of EU documents. For instance, the European Commission's
Green Paper "For a European Union Energy Policy" states that the intemalisation of external
costs is central to energy and environmental policy. Hence, an EU wide common approach to
the quantification of these externalities as well as a common understanding of their
interpretation for policy and decision making is an important prerequisite for this
The first important step to this purpose was made by the EC between 1991 and 1995 with the
development of a methodology to evaluate the externalities associated with power generation.
The ExternE Project, launched within the JOULE I RTD Programme, produced a consistent
"bottom-up" accounting framework demonstrated it for the most important fuel cycles. It has
since then been widely recognised as the most developed methodology to account
externalities of power generation.
The next step was to develop an adequate set of external cost data for different fuel cycles,
technologies and countries, as well as to build up expertise in all the member states to assist
policy and decision makers in the use of these results. Therefore, within JOULE III the
ExternE National Implementation Project was organised. Over the last two years, research
teams within all member states of the EU (except Luxembourg) and Norway have
implemented the ExternE accounting framework to a large number of individual fuel cycles
for power generation. Parallel to this project, the methodology has been further developed and
updated and this has been integrated within these data. Thus for the first time, a broad set of
comparable data on external costs of power generation is now available. These data take
account of site, technology and fuel cycle specificity and this set of data provide a
representative overview for electricity generation in the EU. In addition, first estimates for the
power generation sector as a whole have been developed.
This publication gives a summary overview of the results by fuel cycle and by country. More
detailed reports for each country have been produced and are published by the individual
institutes. These reports all follow the same structure, both to clearly indicate consistency
between the different country reports as to ease comparison.
The results for the different countries show the importance of technology, fuel and site
specificity. This confirms that the approach taken by the EC is the correct one and that the big
effort to develop a 'bottom-up' methodology and generate a broad set of data is well justified.
Energy and environmental policy will only be really efficient and successful if it takes this
specificity into account.
The project integrates existing scientific information from different areas and disciplines in a
coherent framework. This work could only be successful thanks to the support of the JOULE
Energy RTD program of the EC, to the collaboration of the different research teams in all the
countries and to the inputs from a large number of different research programmes both at the EU and national level, and also to the institutes and national public authorities that co-
financed this exercise for their contributions to this important work.
The EC JOULE III programme continues to support a further development of the ExternE
project. For the next two years, it will focus on the application of energy use in transport and
in this context the ExternE methodology will continue to integrate new scientific
developments in the different areas.
The final step towards intemalisation relates to the use of the data in policy and decision
making. Over the years we have noted a growing interest from research, policy and industry
for our results at national and international level. The EC services have now started to feed the
ExternE numbers into the policy preparation process for energy, environmental and research
policies and the EC-strategy to combat acidification and climate change have profited from
this research. This illustrates that notwithstanding all the caveats, these numbers are useful
and credible if presented and used in the right context.
It is this new series of data for all countries - supported by the expertise in the country to
further develop and exploit these data - that may result in multiple uses of these data for
policy and decision making at the level of a country or a region and for both public authorities
and the industries. In the end, the real benefit of this research agenda is to be measured by its
contribution towards a more sustainable energy use. LIST OF CONTRIBUTORS
Tomas Müller, VEO
Johannes Riegler, DoKW
Gerfried Jungmeier, Josef Spitzer, Joanneum Research
Thomas Kostal, Gabriel Obermann, WU Wien
Josef Klimbacher, KELAG
Kurt Pree, Linzer Elektrizitäts-, Fernwärme- und Verkehrsbetriebe AG
Otto Pirker, Verbundgesellschaft
Bernhard Anwander, VKW
Guido Wouters, Henk Vanderberghe, Rudi Torfs, VITO
Leo de Nocker. EFEP
Lotte Schleisner, Per S. Nielsen, Poul E. Morthorst, Niels I. Meyer, RISØ
Pekka Pirilä, Kim Pingoud, Helena Maikki, VTT
Tomas Ötterstrom, Sari Siitonen EKONO
Ari Rabl, Joe Spadaro, ARMINES
Wolfram Krewitt, Petra Mayerhofer, Rainer Friedrich, Alfred Trukenmuller, Thomas Heck,
Alexander Greßmann, 1ER
Fotis Raptis, Frank Kaspar, Jürgen Sachau, ISET
Klaus Rennings, ZEW
Jochen Diekmann, Barbara Praetorius, DIW
D. Diakoulaki, S. Mirasgentis, E. Koukios, N. Diamantidis, C. Stamos, NTUA
J. Kollas, NCSR Demokritos
N. Beloyannis IRELAND
Sheenagh Rooney, Darà Connolly, UCD
Luca del Furia, Gianluca Crapanzano, Marcella Pavan, FEEM
Sergio Ascari, Michele Fontana, Arturo Lorenzoni, IEFE
Franco Maugliani, AEM
C. Dorland, H.M.A. Jansen, R.S.J. Tol, D. Dodd, IVM
Stale Navrud, Jan Riise, ENCO
Manuel Fernandes, Valdemar Rodrigues, CEEETA
Mikel Aróstegui, Julián Leal, Pedro Linares, Yolanda Lechón, Rosa M. Sáez, Manuel Varela,
Arturo Alarcón, TGI
Julio Montes, Andrés Ramos, Lucía Muñoz, IIT
Salvador Salat, Neus Sumarroca, ICAEN
Monica Gullberg, Mans Nilsson, SEI
Jacquie Berry, Mike Holland, Paul Watkiss, Wendy Stephenson, AEA Technology pic