Understanding the true value of energy efficiency
Is it better to invest in new infrastructure to increase the supply of energy, or should we prioritise lowering energy demand in a cost-optimal way? It is difficult for policymakers to respond and to compare options when they look only at energy savings. To compare options for various policies and investment programmes, one needs to take into account the broader picture for society. The MICAT project sought to address this by developing a freely available online tool to help all levels of governance make more informed decisions.
Quantifying multiple impacts
“We sought to develop a more comprehensive approach for quantifying and monetising what we call multiple impacts (MIs) of energy efficiency,” explains MICAT project coordinator Barbara Schlomann, from the Fraunhofer Institute for Systems and Innovation Research in Germany. The project grouped these MIs into three categories: social, economic and environmental impacts. A social impact might be avoiding the burden of asthma for example, while an economic impact might be job creation. Based on this, the project developed the publicly available MICATool, where policymakers select their level of governance (local, national or EU-wide), the field of activity they are interested in, and the identified policy change. So, for example, a national rail provider might investigate the impact of switching fuels. The tool takes the user to a page that calculates the potential impacts across the three categories.
Publicly available tools
The tool is accompanied by detailed documentation and a comprehensive overview. Fact sheets cover the scope of a particular impact, such as the alleviation of energy poverty, and contain a discussion of potential overlaps with other impacts, as well as the calculation steps applied. The successes of the MICAT project are now being built upon in a follow-up project called SEED MICAT. The project was launched in December 2023, with the intention of widening the scope of the MICATool even further. “The new Article 3 of the revised Energy Efficiency Directive on the ‘energy efficiency first’ principle not only asks for cost-benefit analyses to take into account the wider benefits (i.e. the MIs) of energy efficiency solutions, it also asks for transparent methodologies to compare climate neutrality options, including the wider impacts,” notes Schlomann. Under SEED MICAT, the tool will be further developed over the next three years to meet these needs. This will facilitate the analysis of potentially competing or complementary paths and options towards climate neutrality. “This broader view on energy efficiency is very important,” says Schlomann. “Energy system costs alone are not enough, especially when climate neutrality pathways based on large amounts of renewables have to be distinguished from pathways based on strong energy efficiency policies.” Schlomann notes that while both pathways save carbon dioxide and reduce local emissions, land consumption, resource demand and economic impacts may be different. “Including the wider MIs – as calculated in the MICAT and SEED MICAT projects – can help to ensure that energy efficiency, with its economic, environmental and societal impacts, is valued on an equal footing with other options to reduce greenhouse gas emissions,” she remarks. “This is where the MICATool will really be able to help decision makers to comprehensively assess MIs, and understand the true value of energy efficiency.”
Keywords
MICAT, energy efficiency, environmental, fuels, climate, emissions
