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106 5.5.3 Further explanation of the impact assessment This paragraph gives a further analysis of some of the impacts that have been identified in the table above. It does not consider all the identified impacts but only those that need more explanation. The following impacts are considered in more detail: reduction of GHG emissions, administrative costs, compliance costs and possible gains. Where possible, quantification is given. Reduction of GHG emissions An improvement of conversion efficiency will reduce the amount of fuel (fossil or biomass) needed to produce the same amount of electricity and/or heat, and thus reduces the amount of GHG emitted. However, the actual reduction of GHG emission not only depends on the improvements of the end-conversion. It also depends on the responds of other parts of the economy and other policy instrument that focus on GHG emission reduction. This is particularly relevant in relation to co-firing of biomass for electricity generation. The European emission trading scheme (ETS) caps the total amount of GHG emissions by the electricity sector. If a company emits less than its allocated share, it can sell this surplus in the market to parties emitting more than allowed. This system enables the company to produce additional electricity within their allowance, or sell its GHG allowance to companies in need. Consequently, the total GHG emission of the ETS sectors will not change, even though the electricity is produced more efficiently. For sectors that do fall outside ETS, residential and district heating, this effect does not occur. Consequently, real GHG emission reductions take place when end- conversion efficiency is improved. With a mandatory efficiency standard this impact will be larger than with labelling only. However, efficiency improvements reduce GHG emission only marginally compared to increasing the replacement of more fossil fuels with biomass. In general it can not be stated that end-conversion efficiency improvements increase GHG emissions savings. Administrative costs For all policy options the additional administrative costs are estimated to be low, except for investment subsidies. This is the case for both governments and companies. This is because efficiency improvement measures for end-conversion are easily included in existing policies (this because of the existence of several support schemes for biomass already). Quantifying is therefore more difficult, as the current policies and support schemes differ throughout the EU. For companies the costs for calculating the efficiency of the installation will be low, especially since they might also need the same information for other purposes (like GHG balances). Energy efficiency information has to be supplied only once, keeping the administrative costs low. EVALUATION OF IMPROVEMENTS IN END-CONVERSION EFFICIENCY FOR BIOENERGY PRODUCTIONPDF Image | Evaluation of improvements in end-conversion efficiency for bioenergy production
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