This document outlines a framework for determining primary energy factors (PEFs) for electricity. It discusses using attributional vs consequential assessments and identifies key steps: selecting the assessment approach, clarifying the indicator, establishing system limits and time frames. It also outlines principles for PEF calculations in both attributional and consequential assessments, including allocating energy consumption and identifying relevant regulatory measures and marginal changes. Finally, it discusses applications of the framework and principles in EU energy directives for buildings, efficiency and ecodesign/labelling. The framework is intended to establish a consistent approach for determining and applying PEFs and conversion factors in an EU regulatory context.

1. Determining Primary Energy
Factors for Electricity
Leonardo ENERGY Webinar
24. February 2016
Andreas Aamodt, ADAPT Consulting

2. Is electricity the cause of, or solution to,
our energy challenges?
Source: EC. Energy Roadmap 2050. (2011)

3. 2012 review of conversion factors

4. 2012 review of conversion factors
Conclusion:
The use of conversion factors
should be avoided in a regulatory
context if direct regulation of
primary energy consumption is
possible.

5. Regulatory use of conversion
factors seems unavoidable
• LCA
• Sosial accounting
• ISO/CEN
• Energy Performance of
Buildings Directive
• Energy Labelling Directive
• Ecodesign Directive

6. Our mandate
• Establish principles and a
framework for determining PEFs
and other conversion factors for
electricity drawn from the
distribution grid
• Discuss how the use of conversion
factors are appropriate or required
for use in the context of EU energy
policy

7. Methodological approach

8. Framework structure
Part 1:
Overarching
principles
Part 2:
Detailed
calculations
«Accuracy» «Precision»

9. The attributional assessment allocates primary energy
consumption associated with the production of electricity
to the end-user consumption of electricity.
A consequential assessment tries to uncover to what
extent changes in the end-user consumption of electricity
results in changes in the primary energy consumption.
Select assesment
approach
Clarify indicator
Establish
system limits
Establish
time frame
Clarify indicator
Part 1: Overarching principles
Select assesment
approach

10. Part 1: Overarching principles
Private car
Bus with 5
passengers
Bus with 30
passengers
Total greenhouse gas emissions 150 g/km 1525 g/km 1650 g/km
Allocating emissions per passenger 150 g/km 305 g/km 55 g/km
Increase in emissions when the person
choose her mean of transportation
(consequential assessment)
150 g/km 5 g/km 5 g/km
Select assesment
approach
Clarify indicator
Establish
system limits
Establish
time frame
Clarify indicator

11. Part 1: Overarching principles
Select assesment
approach
Clarify indicator
Establish
system limits
Establish
time frame
Clarify indicator
PEF = 1,8
CO2 = 350g
+CCS
PEF = 2,5
CO2 = 50g
PEF = 3,0
CO2 = 0 g

12. Part 1: Overarching principles
Select assesment
approach
Clarify indicator
Establish
system limits
Establish
time frame
Clarify indicator
Low CO2-factor High CO2-factor
High PEF
Geothermal energy
Nuclear power
Thermal energy with
CCS
Bioenergy
Coal-power
Gas-power
Low PEF
Wind power
Hydropower
Solar energy
Combined heat and
power (bio)
Combined heat and
power (coal)
Combined heat and
power (gas)

13. Externality Calculation indicator
Emission of greenhouse gases gCO2e/kWh
Consumption of primary energy PEF (primary energy factor)
Renewable share RESSHARE
Energy cost €/MWh
Emission of radioactive waste mgRW/kWh
Select assesment
approach
Part 1: Overarching principles
Clarify indicator
Establish
system limits
Establish
time frame

14. Select assesment
approach
Clarify indicator
Establish
system limits
Establish
time frame
Part 1: Overarching principles
Power sector
ETS-sectors
All sectors

15. Part 1: Overarching principles
Objective Time frame
Report annual energy statistics
Historical production data
per year (e.g. year 2014)
Meet an energy efficiency target in
2020
Expected production data in
2020
Calculate energy performance of
buildings with an expected lifetime of
50 years
2016-2065
Select assesment
approach
Clarify indicator
Establish
system limits
Establish
time frame

16. Framework structure

17. Methodology part 2a:
PEF-calculations in an
attributional assessment

18. Step 5a: Select allocation
mechanism
Physical allocation mechanism

19. Step 5a: Select allocation mechanism
Financial allocation mechanism

20. Step 6a: Identify electricity mix

21. Step 7a: Identify externalities
associated to the electricity mix
Source: Ecoinvent

22. Step 8a: Determine electricity
conversion factor (PEF)
Example:
Tecnology Share PEF
Hydro 96 % 1
Wind 2 % 1
Natural gas 2 % 1,8
Average 100 % 1,02

23. Methodology part 2b: PEF-calculations
in an consequential assessment

24. Step 5b: Identify relevant
regulatory measures
Examples:
• Concession procedures
• Emission permits
• EU ETS
• Electricity quota systems
• Taxes
• Subsidies

25. Step 6b: Identify marginal changes
in electricity production
Short term Long term

26. Rebound
Price elasticity of demand and
rebound
Price
Quantity
Electricity savings

27. Step 7b: Calculate externalities associated
with changes in electricity production

28. Step 8b: Determine electricity
conversion factor (PEF)
Achieved by multiplying the
primary energy per kWh for each
production technology with the
share each technology has in the
marginal electricity production
mix.

29. Chapter 6: EU application of the
principles and framework
• Energy Performance of Buildings
Directive (EPBD)
– Methodology for calculating the energy
performance of buildings
– Member States are free to adopt national
primary energy factors
• Energy Efficiency Directive (EED)
– Member States may apply a co-efficient of
2,5 reflecting the 40 % average EU
generation efficiency
– Member States may apply a different co-
efficient
• Ecodesign Directive and Energy
Labelling Directive

30. Conversion factors in
Ecodesign and Energy Labelling
Overarching
principles
EU conversion
factor
Recommended
conversion factor
1. Assessment
approach
Attributional Consequential
2. Indicator
Conversion
coefficient
PEF
3. System limits EU25 EEA
4. Time frame 2004 2020
‘conversion coefficient’ or ‘CC’ means a coefficient reflecting the
estimated 40 % average EU generation efficiency referred to in
Directive 2012/27/EU of the European Parliament and of the
Council; the value of the conversion coefficient is CC = 2,5;

31. andreas.aamodt@adapt.no