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Joint Research Centre
the European Commission's
in-house science service
How costs affect
deployment of low
carbon technologies -
analysis with JRC-EU-
TIMES
Wouter Nijs
Institute for Energy and Transport -
Energy Technology Policy Outlook Unit
• Energy research and innovation
R&I are key for achieving a low-carbon transition and
a fundamental building block of the Energy Union.
• Objective of this research
Provide insights for better targeting of R&I efforts by
exploring the impact of techno-economic
assumptions of low carbon energy supply
technologies (in PPT: focus on RES-e and CCS)
Introduction and rationale
Model landscape JRC IET - Energy Technology
Policy Outlook Unit (ETPO)
Energy System
Optimisation
(JRC-EU-TIMES)
Asset Optimisation
Price Taker Models
(SPIRIT)
Energy Services
Demand
(GEM-E3)
Power System
Unit Commitment
(Dispa-SET)
Weather / Demand
Statistical Models
3
Land use & forestry
(LUISA, CBM,
GFTM)
Regional Holistic
Global Equilibrium
(RHOMOLO)
IET model
Other JRC
Hydrology
(LISFLOOD)
Global Energy
(TIMES-TIAM)
BIO-
MASS2
WATER-
FLEX3
ERIBE-
LAND1
1) Project IET/IES/IPTS
2) Project IET/IES/IPTS
3) Proposal IET/IES (tbd)
JRCTIMESTRADE
• Technology rich bottom up energy
system optimisation (partial
equilibrium) model based on the TIMES
model generator of the IEA for EU28,
CH, IS, NO + Western Balkans
• Designed for analysing the role of
energy technologies and their
innovation for meeting Europe's energy
and climate change related policy
objectives
• Model owned and operated by the
JRC
• Model horizon: 2010-2050 (2075)
Available at:
http://publications.jrc.ec.europa.eu/reposit
ory/handle/111111111/30469
JRC-EU-TIMES in a nutshell
Objective
• Minimise total energy system costs
Constraints
• Demand and supply balances by
country and sector
• Capacity limits
• Renewable and emission targets
• …
Energy service
demands
Resource
availabilities
and costs
Sectoral costs
and price
proxies (by
country, energy
carrier,
technology)
Supply and
demand
technologies
Emissions
Techno-
economic
assumptions
Modelling approach
Material and
energy flows
AlignedtolatestEU
EnergyReference
Scenarios
Policies
(GHG and
energy target,
subs.)
ETRI
JRC-EU-TIMES model extensions
Improved RES-e potentials
Other improvementsModel coupling
Recalibration and model
updates
Coupling with other JRC models
Updated biomass potential
Updated solar potential with
explicit representation of land use
Updated wind potential
Such as
• Monte Carlo runs
• Include retrofit options
• Include biogas blending
New base year 2010+
Explicit representation of
insulation options in buildings
Bioenergy in the JRC-EU-TIMES
Potentials
• Agriculture (CAPRI)
• Roundwood and forestry
residues (EFISCEN + now:
CBM GFTM)
• Waste (Eurostat statistics
linked to population and GDP)
Scenarios
• Differ in land use, agricultural
practices, and protected
areas.
Source: "The JRC-EU-TIMES model. Bioenergy
potentials for EU and neighbouring countries."
Model result
Biomass demand is high and almost
insensitive under a 80% CO2
reduction target and the assumption
of carbon neutrality.
2050 potentials (PJ)
Assumptions on energy and climate targets
• Investing 12 B€ per year in
PV R&D could be cost-
effective if this reduces PV
cost to 450-500 €/kW, cet.
paribus
• PV cost is vital for PV
deployment and for the
energy system cost in a cost
optimal low carbon energy
system
How do costs affect PV deployment in EU28 ?
SET Plan Conference 2015
Every 100€/kW PV cost reduction adds 30GW in
2030
and 85GW in 2050
A bigger exercise: 50 scenarios !
The case of Geothermal:
CAPEX evolution and share in power production
No CCS leads
to double
Geothermal
generation
Geothermal power production in 2050 (TWh)
Most countries
still well below
50% of the
economic
potential that is
based on 100
EUR/MWh LCOE
Further demonstration of the outputs
• Electricity production in TWh
• Installed capacity in GW
• CAPEX requirements in EUR billion
• Energy related CO2 emissions in Mt
for scenarios:
CAP, NOCCS, NOPEC + technology sensitivities
Conclusions (1)
• Technology interactions, sensitivities and possible future
investments are valuable outputs for targeting of R&I efforts
• Capital intensive technologies are more sensitive
• Technology interactions and competition are crucial, even in
a low carbon energy system
• Key technologies exist for cross technology sensitivity
within the power sector: CCS, Bio-CCS and geothermal.
• Without CCS, the indirect use of power (Power2Gas) from
variable RES becomes important
• Breakthrough levels have been defined for ocean and CSP
Conclusions (2)
• Using savings in the total energy system cost as a proxy for
a possible R&I budget is powerful although partial:
• Ceteris paribus (other techs don't move)
• No link between R&I and technology improvement.
• When results of JRC-EU-TIMES were deviating from isolated
cost analysis, the cause was often different commodity prices
• Uncovered but on the wish list:
• Extend analysis to demand technologies and storage
• Combinations to overcome single technology sensitivity.
Thank you for your attention!
• Wouter.Nijs@ec.europa.eu
• +31 22456 5481
1.Savvas.Politis@ec.europa.eu
2.+31 22456 5037
3.Pablo.Ruiz-Castello@ec.europa.eu
4.+31 22456 5150
Stay in touch
JRC Science Hub:
ec.europa.eu/jrc
Twitter:
@EU_ScienceHub
YouTube:
JRC Audiovisuals
Facebook:
EU Science Hub – Joint Research Centre
LinkedIn:
Joint Research Centre (JRC) - European
Commission's Science Service
• Assessing the impacts of technology improvements on the deployment of marine
energy in Europe with an energy system perspective
• Assessing the role of electricity storage in EU28 until 2050
• Decarbonised pathways for a low carbon EU28 power sector until 2050
• The effect of limited renewable resources on the electricity generation in a low-
carbon europe
• How far away is hydrogen? Its role in the medium and long-term decarbonisation
of the European energy system
• Improved representation of the European power grid in long term energy system
models: case study of JRC-EU-TIMES
• The JRC-EU-TIMES model - Assessing the long-term role of the SET Plan Energy
technologies
• The JRC-EU-TIMES model. Bioenergy potentials for EU and neighbouring
countries
• Supporting the deployment of selected low-carbon technologies in Europe:
Implications of techno-economic assumptions. An energy system perspective
with the JRC-EU-TIMES model
Recent publications

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How costs affect deployment of low carbon technologies - analysis with JRC-EU-TIMES

  • 1. Joint Research Centre the European Commission's in-house science service How costs affect deployment of low carbon technologies - analysis with JRC-EU- TIMES Wouter Nijs Institute for Energy and Transport - Energy Technology Policy Outlook Unit
  • 2. • Energy research and innovation R&I are key for achieving a low-carbon transition and a fundamental building block of the Energy Union. • Objective of this research Provide insights for better targeting of R&I efforts by exploring the impact of techno-economic assumptions of low carbon energy supply technologies (in PPT: focus on RES-e and CCS) Introduction and rationale
  • 3. Model landscape JRC IET - Energy Technology Policy Outlook Unit (ETPO) Energy System Optimisation (JRC-EU-TIMES) Asset Optimisation Price Taker Models (SPIRIT) Energy Services Demand (GEM-E3) Power System Unit Commitment (Dispa-SET) Weather / Demand Statistical Models 3 Land use & forestry (LUISA, CBM, GFTM) Regional Holistic Global Equilibrium (RHOMOLO) IET model Other JRC Hydrology (LISFLOOD) Global Energy (TIMES-TIAM) BIO- MASS2 WATER- FLEX3 ERIBE- LAND1 1) Project IET/IES/IPTS 2) Project IET/IES/IPTS 3) Proposal IET/IES (tbd) JRCTIMESTRADE
  • 4. • Technology rich bottom up energy system optimisation (partial equilibrium) model based on the TIMES model generator of the IEA for EU28, CH, IS, NO + Western Balkans • Designed for analysing the role of energy technologies and their innovation for meeting Europe's energy and climate change related policy objectives • Model owned and operated by the JRC • Model horizon: 2010-2050 (2075) Available at: http://publications.jrc.ec.europa.eu/reposit ory/handle/111111111/30469 JRC-EU-TIMES in a nutshell
  • 5. Objective • Minimise total energy system costs Constraints • Demand and supply balances by country and sector • Capacity limits • Renewable and emission targets • … Energy service demands Resource availabilities and costs Sectoral costs and price proxies (by country, energy carrier, technology) Supply and demand technologies Emissions Techno- economic assumptions Modelling approach Material and energy flows AlignedtolatestEU EnergyReference Scenarios Policies (GHG and energy target, subs.) ETRI
  • 6. JRC-EU-TIMES model extensions Improved RES-e potentials Other improvementsModel coupling Recalibration and model updates Coupling with other JRC models Updated biomass potential Updated solar potential with explicit representation of land use Updated wind potential Such as • Monte Carlo runs • Include retrofit options • Include biogas blending New base year 2010+ Explicit representation of insulation options in buildings
  • 7. Bioenergy in the JRC-EU-TIMES Potentials • Agriculture (CAPRI) • Roundwood and forestry residues (EFISCEN + now: CBM GFTM) • Waste (Eurostat statistics linked to population and GDP) Scenarios • Differ in land use, agricultural practices, and protected areas. Source: "The JRC-EU-TIMES model. Bioenergy potentials for EU and neighbouring countries." Model result Biomass demand is high and almost insensitive under a 80% CO2 reduction target and the assumption of carbon neutrality. 2050 potentials (PJ)
  • 8. Assumptions on energy and climate targets
  • 9. • Investing 12 B€ per year in PV R&D could be cost- effective if this reduces PV cost to 450-500 €/kW, cet. paribus • PV cost is vital for PV deployment and for the energy system cost in a cost optimal low carbon energy system How do costs affect PV deployment in EU28 ? SET Plan Conference 2015
  • 10. Every 100€/kW PV cost reduction adds 30GW in 2030 and 85GW in 2050
  • 11. A bigger exercise: 50 scenarios !
  • 12. The case of Geothermal: CAPEX evolution and share in power production
  • 13. No CCS leads to double Geothermal generation Geothermal power production in 2050 (TWh) Most countries still well below 50% of the economic potential that is based on 100 EUR/MWh LCOE
  • 14. Further demonstration of the outputs • Electricity production in TWh • Installed capacity in GW • CAPEX requirements in EUR billion • Energy related CO2 emissions in Mt for scenarios: CAP, NOCCS, NOPEC + technology sensitivities
  • 15. Conclusions (1) • Technology interactions, sensitivities and possible future investments are valuable outputs for targeting of R&I efforts • Capital intensive technologies are more sensitive • Technology interactions and competition are crucial, even in a low carbon energy system • Key technologies exist for cross technology sensitivity within the power sector: CCS, Bio-CCS and geothermal. • Without CCS, the indirect use of power (Power2Gas) from variable RES becomes important • Breakthrough levels have been defined for ocean and CSP
  • 16. Conclusions (2) • Using savings in the total energy system cost as a proxy for a possible R&I budget is powerful although partial: • Ceteris paribus (other techs don't move) • No link between R&I and technology improvement. • When results of JRC-EU-TIMES were deviating from isolated cost analysis, the cause was often different commodity prices • Uncovered but on the wish list: • Extend analysis to demand technologies and storage • Combinations to overcome single technology sensitivity.
  • 17. Thank you for your attention! • Wouter.Nijs@ec.europa.eu • +31 22456 5481 1.Savvas.Politis@ec.europa.eu 2.+31 22456 5037 3.Pablo.Ruiz-Castello@ec.europa.eu 4.+31 22456 5150
  • 18. Stay in touch JRC Science Hub: ec.europa.eu/jrc Twitter: @EU_ScienceHub YouTube: JRC Audiovisuals Facebook: EU Science Hub – Joint Research Centre LinkedIn: Joint Research Centre (JRC) - European Commission's Science Service
  • 19. • Assessing the impacts of technology improvements on the deployment of marine energy in Europe with an energy system perspective • Assessing the role of electricity storage in EU28 until 2050 • Decarbonised pathways for a low carbon EU28 power sector until 2050 • The effect of limited renewable resources on the electricity generation in a low- carbon europe • How far away is hydrogen? Its role in the medium and long-term decarbonisation of the European energy system • Improved representation of the European power grid in long term energy system models: case study of JRC-EU-TIMES • The JRC-EU-TIMES model - Assessing the long-term role of the SET Plan Energy technologies • The JRC-EU-TIMES model. Bioenergy potentials for EU and neighbouring countries • Supporting the deployment of selected low-carbon technologies in Europe: Implications of techno-economic assumptions. An energy system perspective with the JRC-EU-TIMES model Recent publications