Integrating the Assessment of Environmental Costs and the Non-Energy Benefits of Energy Efficiency into an Energy Demand Analysis of the Tertiary Sector

Energy system models or energy demand analysis, such as top-down and bottom-up models, provide energy consumption data in energy end-uses, energy carriers, and subsectors. A technical energy efficiency potential can be determined by applying the best available technology (BAT) values. This paper aims to take the consideration of the energy efficiency potential in an energy system model to a new level by including environmental and social aspects. Using the example of the tertiary sector, it is shown how to incorporate a quantification methodology for non-energy benefits (NEBs) together with the (avoided) environmental costs into the energy efficiency potential of an energy demand analysis. This leads to an overall environmental assessment of the tertiary sector and shows how integrating avoided environmental costs and NEBs increases the economic efficiency, cost-effectiveness, and profitability of energy efficiency measures. Assuming a price of 29.04 EUR-ct2020/kWh for the (avoided) environmental costs and a ratio of the total net savings to the net energy savings of 2.3 for the NEBs, all considered energy efficiency measures are economic. This paper shows that including environmental costs and considering NEBs could be important policy instruments.