Dissemination of external costs of electricity supply -
Making electricity external costs known to policy-makers

Final seminar on

External costs of energy and their internalisation in Europe
Dialogue with industry, NGO and policy-makers

Friday, 9 December 2005, Brussels

Presentations available

Please find at the following address the new research headlines concerning external costs



The development of tools, indicators and operational parameters for assessing sustainable transport and energy systems performance (economic, environmental and social)

Project duration: May 2004 - October 2005


Quantification of externalities from electricity production has made considerable progress, however, internalisation of external costs has not been implemented broadly, due to lacking information on the concept and its application as policy aid. Even though the Impact Pathway Approach (IPA) developed in ExternE is accepted as the best way to calculate energy external costs, results show considerable uncertainties and variations with different basic assumptions in certain areas. The scientific task of reducing uncertainties is currently addressed in several projects; identifying the assumptions to be used for decisions however requires consensus with stakeholders.

The main objective of this proposal is to translate and present the concept of externalities, the quantification approach and results outside the scientific community. Furthermore, a discussion of pros and cons between representatives from energy industry, policy and NGOs will be initiated with the aim of reaching a consensus on methodology and values.

A concept for internalisation of external costs in the electricity production sector is developed, and aggregated values as required by the internalisation instruments are derived with the IPA. In a first workshop with stakeholders from NGOs, policy and energy industry approach, values and internalisation instruments are presented and pros and cons as well as possible reservations are discussed. Based on this discussion, arguments to overcome reservations are exchanged and suggestions for converging opposing standpoints are made. Thus prepared, a second workshop is held with the aim of reaching consensus as far as possible. Issues on which no consensus can be reached are documented, and implications of diverging views on values as well as conclusions and decisions are explored. These "final" values and strategies are disseminated to policy makers and to the public. Main dissemination activity is a large symposium with politicians and other stakeholders.