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reports - Deliverable

Elements For The Integration Of LCA Of Energy Scenarios With Energy Modeling And The Monetary Evaluation Of Externalities

reports - Deliverable

Elements For The Integration Of LCA Of Energy Scenarios With Energy Modeling And The Monetary Evaluation Of Externalities

The work presented in the deliverable consists of two parts:

Life Cycle Assessment analysis of the current Italian electricity mix (year 2019) and its future scenarios for 2030 (PNIEC and Green Deal);
Evaluation of the environmental externalities of the aforementioned mixes.
The link between decarbonization and resource consumption is confirmed and evident in the evolution of the mix as predicted by the PNIEC and Green Deal scenarios. The decarbonization of the mix also significantly reduces the amount of environmental externalities per kWh in Italy.

This report consists of two parts: one dedicated to the assessment of environmental impacts using the life cycle methodology of the current Italian electricity mix (2019) and the 2030 mix scenarios (scenarios defined in the PNIEC, Integrated National Energy and Climate Plan, and the Green Deal scenario), and the other focusing on integrating this with the evaluation of environmental externalities.
The electricity mixes were modeled in the life cycle analysis software Simapro, based on data provided by Eurostat and TERNA for the current scenario, and supplemented with environmental declarations from EMAS and statistical reports from GSE, SNAM, and the Ministry of Economic Development.
The analysis extended to the definition of thermoelectric power plants by fuel class and conversion technology, each characterized by specific emission factors and efficiencies. Similarly, renewable plants were described in terms of size and technology, and characterized by equivalent operating hours.
The impact categories analyzed were as follows:
Climate change
Ozone depletion
Particulate Matter
Ionizing radiation HH
Photochemical Ozone Formation
Acidification
Terrestrial Eutrophication
Freshwater eutrophication
Marine eutrophication
Mineral, fossil, and renewable resource depletion
The analysis shows a reduction in all impact categories from 2019 to the 2030 scenarios, except for the category “Mineral, fossil, and renewable resource depletion.” The significant reduction in greenhouse gas emissions, primarily driven by the introduction of photovoltaic and wind power, entails a consumption of raw materials with limited availability.
The second part, which involves evaluating the costs of environmental externalities from an LCA perspective, required spatial characterization of the emissions, as monetary valuations, unlike LCA assessments, are site-specific. Once emissions were disaggregated by geographic area, they were multiplied by the environmental costs attributed to each emission in each identified geographic area. The environmental externalities were adjusted to the current year and relevant geographic areas using value transfer techniques, applying external cost data from the transport sector as defined in the European Commission’s Handbook.
The results show that the external costs of the current Italian mix (2019) amount to €0.057 per kWh (in 2019 euros), which corresponds to 11% of the national wholesale price (PUN) in 2019.
Since more than 70% of externalities are attributable to greenhouse gas emissions, the decarbonization of the mix expected in the 2030 scenarios results in a 66% reduction in external costs, with an external cost of €0.019 per kWh (in 2019 euros) according to the Green Deal scenario.

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