Ecodesign Impact Accounting model

The VHK stock-model, since 2013 better known as the EIA-model (Ecodesign Impact Accounting model), has been used by VHK in its current form since 2008 in 25 official Impact Assessments (IA) reports. These include the IA for the review of the Energy Labelling Framework Directive in 2015 and the IAs for 24 Ecodesign Commission Regulations, in 15 cases also covering Energy Labelling Commission Delegated Regulations for the same product group.

VHK has developed, optimised and used (proprietary) stock models for preparatory studies on energy labels under the 92/75/EC framework directive since the 1990s. Based on that experience, the model was further developed for application in preparatory studies and impact assessments under the Ecodesign and Energy Labelling framework legislation. As such, it uses inputs defined in the MEErP methodology (https://ec.europa.eu/growth/industry/sustainability/ecodesign_en), including those in the EcoReport tool.

The main focus of the model is on transparency to obtain stakeholder acceptance/involvement. The stock-model is extensive, i.e. covering many output-categories, but uses straightforward intuitive calculations implemented in Excel.

From 2013 the EIA tool is used to harmonise and aggregate all Ecodesign preparatory and impact assessment study results in a comprehensive Ecodesign Impact Accounting study, published in principle annually. This also marks the transfer of exclusive distribution rights for the tool to the European Commission. The deliverables of the study include a 40 Mb Excel file covering 50 product-groups with 300 subgroups ('BaseCases') for more than 30 outputs over a timeframe from 1990 to 2050 with a yearly timestep. The Commission then publishes the 300-page pdf of in- and outputs and the model description. 

Apart from the use in Commission impact assessments, the EIA model is also employed for external scrutiny of the Ecodesign and Energy Labelling programme, most recently by the European Court of Auditors, which --apart from relatively minor corrections-- found the EIA model adequate for that purpose. Outcomes of the EIA study are used for EC press releases on the achievements of the Ecodesign and Energy Labelling programme.

The EIA-tool models the technical potential and associated socio-economic impacts for EU policy options regarding resource efficiency improvement and emission abatement (including for greenhouse gases) for consumer- and professional products.  The resulting EU-level scenarios typically cover a 1990 to 2050 time-horizon.

The main focus of the model is on transparency to obtain stakeholder involvement and acceptance as much as possible. The stock-model is extensive, i.e. covering many output-categories, but uses straightforward intuitive calculations and is easily accessible in Excel.

The EIA-tool follows the Methodology for Ecodesign of Energy-related Products (MEErP) for preparatory (review) studies in Ecodesign, which includes the data structure from the EcoReport tool [1] as well as calculation procedures for the assessment of environmental and socio-economic impacts etc.. It takes into account the relevant requirements of the European Commission’s Better Regulation impact assessment guidelines [2].   Generic (default) input parameters on historical and future rates are periodically updated and taken as much as possible from EU-related sources, such as (a) Eurostat for historical energy rates, conventions on calorific values per fuel, etc., (b) EEA (https://www.eea.europa.eu/ ) for air pollution conversion factors (NOx, SO2, PM, etc.), GWP-100 factors for electricity production (reworked), conversions following UNFCC, (c) the latest PRIMES reference scenario for energy price projections, and (d) Energy Efficiency Directive amendment (EU)2018/2002. OJ L 328, 21.12.2018. used for primary energy factor (2.1 instead of 2.5 at transition).  

Product-specific inputs are taken typically from Ecodesign preparatory studies and/or for aggregated studies, like the periodical overall Ecodesign impact accounting, from the IA reports.  The model is periodically updated following the results of new preparatory, review and IA studies. The calculation model updates usually are the result of product specific peculiarities involving double counting, double impacts, lifetime peaks/lows, etc. that require an adjustment for that product. The latest model description can be found on the Commission website. [3]

For some product groups, model variants exist to handle product-specific analysis needs. Typically these variants contain additions to derive the input required by the main methodology, i.e. to derive average loads or efficiencies from detailed distributions, to correctly manage the shift in sales from less to more efficient base cases, to relate product sales to the stock of buildings and dwellings, to include more complex lifetime-distributions in the stock calculations, to simulate the effect of hydrogen as a fuel instead of natural gas, to simulate more detailed price-efficiency relationships (e.g. LEDs), to add energy effects of related products (variable speed drives, lighting control gears, PFHRDs), etc.. In this sense, in particular the Model for European Light Sources Analysis (MELISA) is a further detailed variant of the EIA-model, even if the main analysis methodology remains the same.

References 

[1] https://ec.europa.eu/growth/industry/sustainability/ecodesign_en

[2] https://ec.europa.eu/info/sites/info/files/better-regulation-guidelines-impact-assessment.pdf  and https://ec.europa.eu/info/sites/info/files/better-regulation-guidelines-evaluation-fitness-checks.pdf

[3] Wierda, L., Kemna, R. et al. (VHK), Ecodesign Impact Accounting, VHK for EC DG ENER C.3, 2013-2018. https://ec.europa.eu/energy/en/studies/ecodesign-impact-accounting-0

Generic parameters: historical energy prices, future energy price escalation (growth rate corrected for inflation), electricity to primary energy conversion coefficient (CC=1/PEF), global warming potential for energy sources (GWP-100); rates (€/unit) for consumables (water, paper/filters/ detergents/toner/electrodes/etc. as appropriate) and average maintenance/repair costs (€/yr.). Energy rates diversified per usage sector (residential, tertiary, industry, other).

Business-sector-specific parameters: typical revenue-split OEM/industry/ wholesale/ retail/ installer/ VAT, average revenue per direct job.

For each new product analysed, the Inputs are given for the EU (currently the EU27-2020) and the period 1990-2050:

• Definition of product and product-subtypes (‘Base Cases’);
• Unit sales per Base Case, EU 1990-2050;
• Acquisition costs (in fixed euros, i.e. inflation-corrected for the reference year);
• Service life of the product (average lifetime or lifetime array where needed);
• Unit load, average user demand for product output;
• Unit environmental impact (energy efficiency, GHG, NOx, CO, PM emissions) of average new products sold per year over the 1990-2050 period;
• Annual unit consumable consumption (e.g. water, paper) and maintenance costs;
• Improvement environmental impact and associated costs, given as arrays of values for inter- and extrapolation, at least for Base Case (BC), Least Life Cycle Cost (LLCC), Best Available Technology (BAT) products;
• Learning curve effect (percentage acquisition cost reduction per year after implementing policy option, up to previous level).