– Update: workshop report published
The report that was produced as a result of the workshop has just been published and it is available here. A mind map was also created, click on the figure to access it.
The workshop is motivated by the need to assess the full value of wind to society and its economic impact at large beyond the cost of energy. In the context of the slow recovery from the economic crisis in Europe, reduced subsidies for renewables and, in some markets, the continuous reduction in the cost of natural gas and coal as alternative generation fuels, it becomes necessary to further explore the legitimacy of wind energy through a deeper understanding of its socio-economic value.
The aim of the workshop is to draw up a comprehensive list of the social, environmental and economic elements that should be included in any analysis of the value of wind energy to society, subject to the scope of that individual analysis. In order to achieve this, the workshop, which adopted a brainstorming format of a focus group, aimed not at obtaining values, but to define the system or systems involved, to define the variables that should be included in the system (s) and to identify data needs. This involved examining the elements or analytic results of some existing studies that explore the value of wind energy and identifying the gaps in these that should be addressed to allow for a comprehensive analysis.
The workshop contributed to the work of Task 26 (Cost of Energy) of the International Energy Agency Wind Implementing Agreement (IEAWind). Task 26 members along with 25 other experts provided the expertise needed in the following areas: experience with similar studies; macro and micro economics, including modelling; systems approaches; cost-benefit and other impact assessment tools; energy systems including wind energy and system integration; and environmental and social aspects.
The outcome of the workshop includes a consensual list of all the elements that could, should or should not be included in a system approach to assessing the social and economic impacts of wind energy, along with a set of explanations for the conclusions reached. Other outcomes are the identification of system boundaries, the detail of data needed for every element and the more common data gaps. Based on these outcomes, a guide for policy makers, analysts, scientists and policy-support practitioners etc., will be drafted, and the outcomes will be published as workshop proceedings in a JRC Scientific and Policy Report. Eventually, and with the view of opening the conclusions of the workshop to public debate, a forum-like web facility may be provided after the workshop so that other non-attending experts can contribute with their ideas.
Three presentations opened the workshop and helped set the scene:
- Ms Norela Constantinescu, Policy Officer at the European Commission's Directorate General for Energy, presented the European context that trigger the European contribution to this joint IEAWind/JRC workshop: Energy technologies -context for the development of wind sector
- Dr Mark Cooper presented the context for the value of wind in energy systems: Multi-criteria portfolio analysis of electricity resources. Dr Cooper kindly provided additional background information.
- Dr Ryan Wiser from the National Renewable Energy Laboratory of the Department of Energy (US) presented the methodology for valuing wind energy of the revision of the 2008 report “20% Wind by 2030”, which is currently in progress: Value of Wind Energy: DOE Wind Vision Methodology Review
Workshop participants highlighted the interest of other initiatives focusing partly or fully on the same issues raised, and the importance of exploiting the synergies when investigating the value of wind. Among these initiatives the following can be highlighted:
- An empirical study of the Energy Research centre of the Netherlands (ECN) on the profile costs of wind energy in the Netherlands. Note that the profile costs played a major role in a cost-benefit analysis of wind onshore in the Netherlands (Central Planning Agency CPB).
- KNEE: Cost and benefits of renewable energy technology (RET) deployment on the German power and heat sector. Financed by the Federal Ministry for Environment, Nature Conservation and Nuclear Safety 2008-2012. Methodological approaches were developed how to assess costs and benefits of RET deployment. The effects have been classified into system-related effects, distributional and price effects at the micro level and overall macroeconomic sectoral (gross) and net effects (net of all costs, whole economy). All studies are in German.
- ImpRES: Impacts of RET deployment. Project financed by the Federal Ministry for Environment, Nature Conservation and Nuclear Safety 2012-2015. Elaboration of methodological approaches to assess the impacts on innovation and security of energy supply. In-depth analysis of distributional effects, impacts on selected economic groups or players and regions in Germany.
- DiaCore: Policy dialogue on the assessment and convergence of renewable energy sources (RES) policy in EU Member States (DIA-CORE), an EU Intelligent Energy Europe-supported project. Deliverable on: Guidelines for the Assessment of Costs and Benefits of RET Deployment in the EU member states.
- ireValue: An initiative by the International Renewable Energy Agency (IRENA) that serves as a platform containing various projects related to the socio-economic impacts of renewable energy deployment. Among others, these projects include:
- The econValue project, which analyses economic value creation from RE deployment, the best policies for it, and the tools and methodologies available to its estimation.
- ireJobs aims at better understanding the employment effects of renewable energy deployment, see the Renewable Energy and Jobs report. The study explores the recent RE employment trends, the methodologies available to estimate RE job creation, the policy environment that can maximize jobs, the occupational needs and required skills, the local development benefits linked to renewable energy applications in rural areas, and the empowerment of local communities and women.
