Air and Energy

Project:

Extension of the methodology for granting exemptions from the application of emission levels associated with the best available techniques for installations in Category 1.1 combusting fuels in plants with a total rated power of 50 MW or more

Ministry of the Environment of the Czech Republic

IREAS Energy s. r. o.

Project duration:

5/2017–1/2018

Description:

Goal of the study was to develop an extension of the current methodology for granting exemption from the best available techniques to large combustion plants, especially regarding unit costs of emissions abatement.

A cost benchmark setting proportionate and disproportionate unit costs of emission abatement of NOx, SO2 and PM was calculated based on the analysis of detailed microeconomic data of nearly 50% of the installed thermal rated power in the Czech Republic.

Conclusion of the study (the cost benchmark) serves as a basis for the extension of the methodology for granting exemptions from the best available techniques to large combustion plants according to article 15 of the Directive 2010/75/EU of the European Parliament and of the Council of 24 November 2010 on industrial emissions (integrated pollution prevention and control).

Researchers
in charge:

Project:

Comprehensive model of waste heat utilization in CE regions (CE-HEAT)

Interreg Central Europe

IEEP, Institute for Economic and Environmental Policy, Faculty of Social and Economic Studies, J. E. Purkyně University in Ústí nad Labem

Project duration:

5/2016–4/2019

Description:

The project focuses on the use of waste heat that is in energy savings. The waste heat is such that it cannot be used by its producer (company, municipality), e. g. cooling or combustion facilities. Such heat can be used by another entity, which is forced to produce it for itself. Energy savings therefore represent an opportunity for both financial savings and for environmental protection. They are also a way of how to raise energy safety. The focus of the project and involvement of UJEP is a logical reaction to the specific needs of the region.

The Czech Republic has a potential of approximately 5 PJ savings in waste heat. The project will focus on the identification of the possible use of waste heat in this region in cooperation with self-governing regions, municipalities and companies. The result of the project will be a real application in the form of a pilot project. The goal of the project is also to create a system which would allow to identify the possibilities of waste heat use even after the end of the project, for example by using the data flows within the legal obligations of the companies and municipalities (for example by using the area energy conceptions). CE-HEAT will also enhance a mutual cooperation of foreign and Czech academic institutions, regional and municipal self governing authorities and business sphere.

Besides the Czech Republic there are 5 other European countries involved in this 3 year project realized within priority axis 2 Cooperation in the area of low carbon strategies in Central Europe. The partners on the side of the Czech Republic are IEEP UJEP and the National Center for Energy Savings. The leader of the consortium is from Slovenia.

Project:

The cash flow potential analysis of the Operational Programme Enterprise and Innovation for Competitiveness according to applicants' size: The optimization suggestion according to cost effectiveness and thematic goals

Národní centrum energetických úspor, z. s.

IREAS Energy, s. r. o.
IEEP, Institute for Economic and Environmental Policy, Faculty of Social and Economic Studies, J. E. Purkyně University in Ústí nad Labem
Department of Management and Economics, Faculty of Mechanical Engineering, CTU in Prague

Project duration:

12/2015–3/2016

Description:

The main goal of this study was to conduct an impact assessment of the limited financial allocation for large enterprises in Operational Programme Enterprise and Innovation for Competitiveness (in Czech OPPIK). According to the decision of the European Commission (C 2015, 3039) the support of large enterprises can reach (after considering all exceptions and other circumstances) only less than 30 % of this operational programme's financial allocation. This restriction threatens the ability to use spendable funds of the programme to reach its goals. One of these goals is to reach substantial energy savings thanks to specific goals 3.2 and 3.5. The ex-post analysis of the projects funded in the last programming period (2007–2013) was conducted including the calculation of the probable effects of OPPIK with the given rules of the current programme on both small and large enterprises in this programming period (2014–2020). The analysis of absorption capacity was also conducted for some priority axes and legal correctness analysis of the current OPPIK's rules.

Conclusions:

The main conclusions can be summarized as follows: reduction of the support for large enterprises is not reasonable, because: a) it impedes effective reaching of the given and authorized OPPIK’s goals, b) it impedes the support of SME’s that are included in the definition of large enterprises and c) it is against the legal framework (par. 3, Regulation no. 1301/2013). The institute of the “Programme Change”, regulated in art. 30, Regulation 1303/2013, can be used as a possible corrective measure of this legal contradiction with the EU regulation. With better adjustment of the programme from the viewpoint of both small and large enterprise support it would be possible to reach significantly higher effects (especially in energy saving), than it is predicted by OPPIK’s programme document, namely in final energy consumption savings as large as 28, 4 PJ per year (instead of the current prediction of 17, 5 PJ) and in primary energy savings as large as 10, 9 PJ per year instead of the current 6, 5 PJ per year (40% more).

Researchers
in charge:

Ondřej Vojáček, Jan Macháč, Jiří Louda, Lenka Zemková, Ladislav Sobotka, Petr Krautwurm

Project:

Economic assessment of ancillary services for distribution network operators

ČEZ Energo, s.r.o.

IREAS, Institute for Structural Policy, o.p.s.

Project duration:

06/2015 - 09/2015

Description:

The aim of the study is to analyze viable conditions for provision of the ancillary services in the form of island operation and start from the dark from the small decentralized sources of the energy (generally cogeneration units up to 5 MW) as well as to assess the risks of their provision.

Upon the analysis of ancillary services economics of both the selected generation unit and the local distribution network, an analysis of the potential financial schemes allowing feasibility of the similar projects was carried out including also a prioritization of the financial schemes (payment for „the support service“; direct investment subsidy; subsidies from state budget; financial participation of entities belonging to the island).

Conclusions: Based on the pilot project, the annual costs related to the provision of the ancillary services can be quantified as CZK 201 000/MWe installed for the power generator. For the distribution network operator, the costs are determined by an interval of 287 – 510 CZK/MWh delivered depending on the technological level (the pilot project or the minimal-costs scenario).

For the potential financial scheme the financial participation of the entities belonging to the island was favored scheme as the solidarity and wealth redistribution are lower while local realization is easier compared to others.

Application of results: The results are expected to be utilized within negotiations about the future shape of the ancillary services support in the Czech Republic.

Researchers
in charge:

Vitezslav Maly; Ladislav Sobotka; dr. Ondrej Vojacek

Project:

Economic assessment of current rate of the recycling fee for PV modules placed on the market till 31. 12. 2012 in terms of the Waste Act and proposal of potential change in fee with respect the legal obligations

Ministry of the Environment of the Czech Republic

IREAS, Institute for Structural Policy, o.p.s.

Project duration:

05/2015 - 09/2015

Description:

The project was focused on the critical revision of the current rate of the recycling fee deposits paid by the solar power plants owners and providers to the collective systems who will arrange the solar panels disposal after they finish the operation. Current fee was set to CZK 8.5/kg of PV module and it has to be paid by 2019. The fee has been criticized as being too high.

Current system include all the installations put into the operation up to the year 2013 (which is most of the installations in the Czech Republic due to massive government support in the form of feed in tariffs) which is approximately 2124 MWp of installed capacity.

IREAS carried out a critical analysis of the flows of the recycling fee deposits, liabilities of the companies responsible for the PV modules disposal, the possible and probable costs and revenues of PV modules disposal. The analysis of the administrative costs, transportation costs and costs of the modules collection was also done. Extensive consultation on the all abovementioned parts of the analysis were done in the Czech Republic and abroad.

Conclusions: Based on analysis the fee adjustment to CZK 5.2-7.8/kg PV was suggested to the Ministry of the Environment of the Czech Republic. Also the revision of the current system of payments and liabilities of the particular stakeholders was suggested.

Special attention was paid to the small installation (up to aprox. 10 kWp), where significant changes in the system were suggested.

Application of results: The results are being applied by Ministry of the Environment of the Czech Republic in the negotiation process with the stakeholders about recycling fee deposits. 

Researchers
in charge:

Project:

Assessment of impacts of proposed Directive of the European Parliament and of the Council on the limitation of emissions of certain pollutants into the air from medium combustion plants (the MCP Directive)

Ministry of Industry and Trade of the Czech Republic and Teplárenské sdružení České republiky (Association for District Heating of the Czech Republic)

IREAS, Institute for Structural Policy, o. p. s.

Project duration:

4–8/2014

Description:

The project objective was to assess the impacts of potential adoption of the proposal for a "Directive on the limitation of pollution from medium combustion plants with an installed capacity of 1–50 MWt" of December 2013 (hereinafter, the Directive), which is part of the "European clean air policy package". The objective of the proposed Directive is a major reduction to emission limits for particulate matter, SO2 and NOx. The analysis of economic impacts on Member States commissioned by the European Commission mentions costs of CZK 160 million a year for the Czech Republic. IREAS carried out an economic analysis of the impacts of the proposed Directive at the national level in detail, using its microeconomic model SimTool.

Conclusions: The investigation yielded information for 146 sources (40% of the total 365) in the brown and black coal and liquid fuels categories. We had approached 177 sources (48% of the total 365). The modelling of the impacts at the corporate level used our own microeconomic SimTool Economic model. The total average annual costs are CZK 1.7 billion, being thus approx. 10 times higher than those assumed by the European Commission's impact analysis. The adoption of the Directive in its analysed form would have the greatest impact on brown coal sources.

Application of results: The results were applied as part of the negotiation of the proposed Directive in the Council of the EU "Working Party on the Environment" (when formulating instructions for the WPE meeting) and in negotiation in the European Parliament ENVI and ITRE committees.

Researchers
in charge:

Proposed decree to apply an exemption from best available techniques (BAT exemption) pursuant to Article 15 of the Industrial Emissions Directive (2010/75/EU)

Ministry of Environment of the Czech Republic, Confederation of Industry of the Czech Republic

J. E. Purkyně University in Ústí nad Labem

11/2012–1/2013

Description:

The project objective was to draw a proposal for a part of a decree for awarding exemptions from best available techniques (BAT) pursuant to Article 15 of Directive 2010/75/EU, which sets out that an operator may be awarded a BAT exemption due to disproportionate costs. The project involved a legal analysis based on existing judgments in the area of proportionality of regulation, followed by a proposal of a methodology for awarding exemptions, including calculation tables for costs and benefits of regulation.

Conclusions: An assessment of an application for an exemption has to be based on a comparison of the environmental significance of the pollution source and the economy of the investment being assessed. The environmental significance of the pollution source is derived from its legal classification and inclusion of certain special regimes (such as so-called pollution-significant source or listed source) and the difference between the emission limits set according to BAT and the size of emission limits proposed in the application for an exemption. The assessment of the economy of investment is based on the proposal for investment cost calculation when shifting to BAT (see the decree and the MS Excel calculation spreadsheets). The application assessment is made based on a comparison of the environmental significance of the pollution source and the economy of the required investment.

Basic proportionality assessment principles: (1) suitability – whether the measure allows achievement of the target; (2) necessity – whether the target can be achieved better with a different means; (3) interference minimisation – whether the measure poses as little restriction on its recipients as possible.

Application of results: The outcomes were incorporated in a decree under the Integrated Prevention Act. The outcomes increase the transparency and predictability of the BAT exemption awarding process, which benefits both the state administration and operators of facilities in the integrated prevention regime.

Project:

Assessment of impacts of environmental and energy regulation with respect to competitiveness of Czech industry after 2020 – section IPPC impact analysis

Confederation of Industry of the Czech Republic

IREAS, Institute for Structural Policy, o. p. s.

Project duration:

2/2012–6/2013

Description:

The study quantified costs that individual businesses and industry sectors will have to expend in the following decade in order to comply with requirements of the Industrial Emissions Directive (2010/75/EU), particularly its section that has been transposed into the Czech legal system as an amendment to the Act on Integrated Prevention and Pollution Reduction, the Integrated Pollution Register and on amendment to certain acts.

Conclusions: The costs were estimated at CZK 112 billion in 2010-2020. The biggest impacts are expected (in the order of enumeration) in the electrical energy sector (NACE 35), the chemical industry (NACE 20), the metallurgical industry (NACE 24), and coke and petroleum production (NACE 19).

Application of results: The outcomes were used by the Confederation of Industry in its communication with policymakers on the economic burden arising from environmental regulation.

Researchers
in charge:

Project:

Economic assessment of measures to improve air quality in the Moravian-Silesian Region as part of the commission "Increasing PO₂ absorption capacity – analysis of national and regional policies"

Ministry of the Environment of the Czech Republic

IREAS, Institute for Structural Policy, o.p.s.

Project duration:

1–5/2011

Description:

The objective of the economic part of the project (developed by IREAS) was an economic assessment of various options for improving the air quality in the areas of the Moravian-Silesian Region the most burdened with pollution. The analysis focused on quantification of the unit costs of abatement of dust emissions (i. e. costs of not releasing 1 tonne of dust) in the sectors of industry, local fireplaces and transport.

Conclusions: The analysis showed that there are dramatic differences of hundreds of percent in pollution abatement costs. Clearly the cheapest measure identified was emission reduction from local fireplaces (between CZK 50 and 500 thousand; thermal insulation only costs from CZK 1 to 2 million/ton of PM), followed by measures in the industry (from CZK 0.3 million to 3 million; the median is around CZK 0.5 million). Measures in the transport sector were shown to be very costly (from CZK 10 to 30 million; only CNG buses showed lower costs, namely CZK 2 million). The analysis conclusions indicate the necessity to carry out economic analyses when formulating air protection policies, choosing and prioritising measures. However, the same conclusion applies to climate and water protection policies and others.

Application of results: The outcomes and their repeated presentation have significantly contributed to a shift in the public debate on regulation of air pollution sources from large industrial sources towards local fireplaces. To this day, the results have been presented by policymakers independently of the authors at all major conferences on air protection.

Researchers
in charge:

Project:

Study of economic impact of compliance with emission limits pursuant to Directive 2010/75/EU on smaller heat energy producers (up to 200 MWt)

Teplárenské sdružení České republiky (Association for District Heating of the Czech Republic)

e-academia.eu, s. r. o.

6/2010–9/2011

Description:

The study dealt with modelling of economic impacts of transposition of the Industrial Emissions Directive (2010/75/EU) on a selected sample of medium-sized district heating plants (capacity from 110 to 214 MWt). The plants were selected to best represent the actual structure of district heating facilities in the Czech Republic that may potentially use the transition period for district heating plants. The analysis included both plants complying with emission parameters corresponding to best available techniques (BAT) and those facing fundamental upgrades. On the whole, we modelled 8 plants: 4 brown coal, 2 black coal and 2 gas fuelled plants.

Conclusions: The analysis showed that inability to apply the exemption would be felt the most in older brown coal facilities, where the obligation to comply with emission limits at the level of best available techniques would lead to a jump increase in the heat price by CZK 58/GJ on average (which is a 10% increase in the heat price), with average investment costs around CZK 400 million per plant. The study evaluated this impact as potentially significant in synergy with other adverse impacts registered on the sector in the study period. The impact modelling used our own SimTool microeconomic model.

Application of results: The outcomes were incorporated in the Regulatory Impact Assessment (RIA) of the draft for a comprehensive amendment to the Air Protection Act, followed by an application of a transition period in the wording of the Act.

Researchers
in charge:

Project:

Economic assessment of reducing greenhouse gas emissions in EU countries by 30% compared to 1990

Ministry of the Environment of the Czech Republic

e-academia.eu, s. r. o.

5–9/2010

Description:

The objective of the study was to analyse economic impacts of the contemplated augmentation of the reduction target for greenhouse gas emissions from 20% to 30% by 2030 compared to 1990. The analysis was made at the level of both aggregated emissions for individual sectors of the economy and economic impacts on selected industry sectors potentially threatened by the augmented reduction target.

Conclusions: The study showed that augmentation of the reduction target and the associated reduction to the allocation of free permits would lead to reduced competitiveness and, in some cases, a serious threat to economic profitability of sectors potentially threatened by carbon leakage, notably sectors with low profit margins, homogenous products and process emissions (manufacturers of cement, lime, etc.). The analysis used detailed emission data from the Czech Hydrometeorologic Institute. The economic analysis used our own SimTool microeconomic model.

Application of results: The results were applied as part of the negotiation of the draft Directive in the Council of the EU "Working Party on the Environment" (when formulating instructions for the WPE meeting) and in negotiation in the European Parliament ENVI committee.

Researchers
in charge: