This stage involves assessing the potential of various energy options and identifying the least cost – greatest net benefits combinations of solutions, while considering wider impacts and uncertainties.
In this step, planners should evaluate the potential uptake and impact of energy efficiency solutions. This should include identifying opportunities for energy conservation and energy efficiency improvements in various sectors, such as buildings, transportation, and industry. Planners should consider factors such as cost-effectiveness, technical feasibility, and potential for energy savings and greenhouse gas emissions reductions. This step is key in properly incorporating the energy efficiency first principle in energy planning, by ensuring that the maximum possible uptake of such solutions is planned
Technology Catalogue Tool
The Technology Catalogue Tool can help planners assess the potential of various supply-side and demand-side solutions in their region, by providing indicative information on renewable energy sources, regional energy generation solutions, as well as end-use energy efficiency solutions for different sectors. More specifically, the tool can help planners understand the cost-effectiveness of various energy technologies and solutions, including average costs (capital, operational and maintenance costs, etc.), efficiencies and emission intensities for the supply side, as well as potential energy and cost savings for energy efficiency solutions. As such, the tool allows planners to select and compare different energy technologies and solutions based on the region's specific needs and objectives.
In addition to energy efficiency solutions, planners should also evaluate the potential of available renewable energy resources in the region. This may include solar, wind, biomass, hydro, and geothermal resources, among others. Planners should consider factors such as technical feasibility, environmental impact and potential for regional economic development. This assessment will help identify the most promising renewable energy options to incorporate in the regional energy plan.
Technology Catalogue Tool
The Technology Catalogue Tool can help planners assess the potential of various supply-side and demand-side solutions in their region, by providing indicative information on renewable energy sources, regional energy generation solutions, as well as end-use energy efficiency solutions for different sectors. More specifically, the tool can help planners understand the cost-effectiveness of various energy technologies and solutions, including average costs (capital, operational and maintenance costs, etc.), efficiencies and emission intensities for the supply side, as well as potential energy and cost savings for energy efficiency solutions. As such, the tool allows planners to select and compare different energy technologies and solutions based on the region's specific needs and objectives.
Before conducting the cost-benefit analysis, planners should consult with stakeholders to agree on the modelling approaches and scenarios to be used. This may involve discussing appropriate analytical tools, determining key assumptions, and defining various future scenarios, such as business-as-usual, and energy efficiency-focused scenarios. As such, this is an opportunity to communicate the benefits of incorporating the energy efficiency first principle in future scenarios and ensuring stakeholders buy-in. Furthermore, stakeholders should be given the opportunity at this stage to provide data and evidence to support the cost-benefit analysis. Engaging stakeholders in this step will help ensure the transparency and credibility of the analysis.
With the modelling approaches and scenarios agreed upon, planners should conduct a cost-effectiveness analysis. This should involve modelling the future energy system under different scenarios, taking into account the potential of renewable energy resources, energy efficiency solutions, and other relevant factors. The analysis should also consider both direct costs, such as capital and operating costs of the solutions, and indirect costs, in order to identify the most cost-effective mix of solutions,
Cost-Benefit Analysis Tool
The Cost-Benefit Analysis Tool can help planners assess the costs, effectiveness and to an extent the benefits (e.g., energy cost savings) of different energy solutions for their region. This tool can enable planners compare various energy options and identify those that provide the greatest net benefits for the region. More specifically:
The user inputs key variables, such as technology costs and energy prices.
The tool produces outputs, including the costs, energy savings and energy cost savings of different energy solutions.
The tool can also help planners assess the sensitivity of the analysis, to uncertainties, by changing key inputs variables. This can help planners identify the most robust and resilient energy solutions under different circumstances.
In addition to direct and indirect costs, the cost-benefit analysis should also account for benefits and wider impacts, such as employment generation, local economic development, environemntal benefits (e.g. improvements in air quality), public health benefits, and opportunity costs. Monetising benefits and wider impacts will help planners capture the full value of different energy options and inform decision-making.
Cost-Benefit Analysis Tool
The Cost-Benefit Analysis Tool can help planners assess the costs, effectiveness and to an extent the benefits (e.g., energy cost savings) of different energy solutions for their region. This tool can enable planners compare various energy options and identify those that provide the greatest net benefits for the region. More specifically:
The user inputs key variables, such as technology costs and energy prices.
The tool produces outputs, including the costs, energy savings and energy cost savings of different energy solutions.
The tool can also help planners assess the sensitivity of the analysis, to uncertainties, by changing key inputs variables. This can help planners identify the most robust and resilient energy solutions under different circumstances.
By undertaking a cost-benefit analysis and comparing the costs and benefits of different options, planners should identify the least cost – greatest net benefits combinations of renewable energy resources and energy efficiency solutions that can achieve the region's energy objectives and targets.
Finally, planners should assess the sensitivity of the cost-benefit analysis to uncertainties, such as changes in technology costs, energy prices, and policy frameworks. This will help planners understand the robustness of the analysis and identify potential risks and opportunities associated with different energy options.