Stricter emission standards for non-EU power plants

Coal power plant in Kosovo. Photo: Flickr.com/World Bank Photo Collection/CC BY-NC-ND

The health and environmental benefits for eight non-EU countries to comply with EU emission limit values for large combustion plants are on average 17 times the costs.

The Energy Community, an energy association of Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova, Montenegro, Serbia and Ukraine, has published a study assessing the costs and benefits of modernising large combustion plants in their countries to comply with EU environmental regulations.

Established in 2005, the Energy Community is an international organisation dealing with energy policy, with a secretariat located in Vienna, Austria. Parties to the Energy Community Treaty (ECT) are the European Union and eight countries: Albania, Bosnia and Herzegovina, Kosovo, Macedonia, Moldova, Montenegro, Serbia and Ukraine. Four more countries – Armenia, Georgia, Norway and Turkey – take part as observers, although Georgia is in the process of joining the Energy Community as a signatory.

Today, the main motive behind the ECT is the import of the EU energy policy into non-EU countries. The implementation of the EU directives on environmental impact assessment, sulphur in fuels, and large combustion plants’ emission standards constitute the core of the environmental acquis.
An assessment of the costs and benefits of upgrading large combustion plants in the countries was published by the secretariat last December. According to the study, the monetised benefits would outweigh the costs of compliance with the environmental standards by 17 times on average in the Energy Community region. This means that for every euro spent, there would be a seventeen euro return in terms of environmental and health benefits.

The EU’s 2001 Large Combustion Plants (LCP) Directive applies to all combustion plants with a rated thermal input greater than 50 megawatts (MW), irrespective of the type of fuel used. In late 2010, the EU adopted a new Industrial Emissions Directive (IED) that will replace the LCP Directive from 1 January 2016 onwards.

All contracting parties to the ECT have undertaken to implement the LCP Directive by 31 December 2017. This is of high priority politically and technically for these countries as well as for the EU. According to a decision of the ECT Ministerial Council in October 2013, contracting parties must also implement the IED provisions in the case of new plants.

The purpose of the secretariat’s study was to deliver an overall estimate on the amount of investment necessary for the modernisation of power plants located in the ECT countries, and of the benefits expected from the resulting emission reductions. All ECT countries, except Albania and Moldova, were shown to have high external costs related to emissions from power and heat generation plants, mainly due to the high average age of the plants and the low level of maintenance over the past decades.

Significant investments are required for the upgrades needed to ensure the implementation of the two directives. All in all, there are 183 LCP units, with a total power capacity of nearly 41,000 MW and with a net power output of 38 gigawatts (GW). The largest capacity is found in Ukraine, with 113 units and a total power output of 29.4 GW.

Investment costs are estimated at €6.7 billion for compliance with the LCP Directive, increasing to €7.8 billion for the IED. Around three quarters of these investments would take place in Ukraine.

According to the cost-benefit analyses, however, the estimated benefits significantly outweigh the costs. On a country-by-country basis, the benefits were found to be between 8 and 51 times higher than the costs for the LCP Directive implementation, and between 4 and 50 times higher in the case of IED implementation. Looking at all countries combined, the benefits were 16–17 times higher than the costs.

A third, alternative, scenario was also investigated. This would include the shut-down and replacement of some old plants and upgrading of the remaining ones, where needed. It would result in better overall energy efficiency with consequent fuel savings and lowered greenhouse gas emissions, as well as lower costs for operation and maintenance.

The study also includes a number of country-specific recommendations for achieving compliance with the requirements of both the LCP Directive and the IED.

Christer Ågren

The report Study on the need for modernization of Large Combustion Plants in the Contracting Parties of the Energy Community in the context of the implementation of Directive 2001/80/EC (December 2013). By South East Europe Consultants, Ltd. Published by the Energy Community secretariat, Vienna, Austria. Available at: www.energy-community.org

In this issue

A new EU clean air strategy up to 2030

At the very end of the EU’s “Year of Air” the European Commission finally presented its long-awaited new clean air policy package, including a proposal for member states to further cut their national air pollutant emissions up to 2030.

Editorial: Need for ambitious and explicit targets

In its White Paper on climate and energy, presented on 22 January, the EU Commission declares that it wants to see cuts in greenhouse gas emissions of 40 per cent by 2030, compared to 1990 levels (see page 22). At the same time it proposes scrapping national targets ..

Banking on coal – undermining our climate

A new study reveals the top twenty international banks that are financing the coal mining industry and the hot spots of global coal production.

Ships should use advanced emissions monitoring

Advanced emissions monitoring of large ships calling at EU ports could help save owners and operators of large ships up to €9 million per year.

Emission controls for medium combustion plants

EU-wide application of the most stringent standards now used in member states would reduce NOx emissions from these plants by nearly 80 per cent by 2025, but the new directive will deliver less than half of this reduction.

Hamburg commits to fossil fuel beyond 2050

The city of Hamburg’s climate ambitions are overshadowed by a new Vattenfall coal power plant, which will emit 8.7 million tons of CO₂ annually when it comes into operation.

Cutting emissions from heaters and wood-fired stoves

From 2015, new residential wood-fired stoves and heaters in the US should be less polluting and more efficient.

CCS no more in Norway

A full-scale CCS plant would be too expensive, that is the explanation given as Norway abandons its originally ambitious plans for the technology.

Most corals will bleach at 1.5°C

A quarter of marine biological diversity depends on coral reefs. Now researchers estimate that only 10 per cent of the reefs might survive at a temperature increase of only 1.5°C.

Oceans acidify at unprecedented rate

The rate of ocean acidification is the highest in 300 million years. The predicted effects on food webs and biodiversity will impact aquaculture and societies around the world.

Uncertain future for further emission reductions

Difficulties with shifting to renewables and rising emissions from aviation are two hurdles that the EU needs to overcome in order to achieve its climate targets in the transport sector.

Don’t delay NECAs!

Delaying agreed NOx standards would have several extremely negative consequences, including increased emissions and subsequent damage to health and ecosystems.

Stricter emission standards for non-EU power plants

The health and environmental benefits for eight non-EU countries to comply with EU emission limit values for large combustion plants are on average 17 times the costs.

EU climate and energy targets for 2030

To keep its international climate pledges, the EU must adopt three ambitious, binding targets for greenhouse gas reductions, renewable energy and energy savings.