Andrew Angus

Financial appraisal of wet mesophilic AD technology as a renewable energy and waste management technology.

Anaerobic digestion (AD) has the potential to support diversion of organic waste from landfill and increase renewable energy production. However, diffusion of this technology has been uneven, with countries such as Germany and Sweden taking the lead, but limited diffusion in other countries such as the UK. In this context, this study explores the financial viability of AD in the UK to offer reasons why it has not been more widely used. This paper presents a model that calculates the Internal Rate of Return (IRR) on a twenty year investment in a 30,000 tonnes per annum wet mesophilic AD plant in the UK for the treatment of source separated organic waste, which is judged to be a suitable technology for the UK climate. The model evaluates the financial significance of the different alternative energy outputs from this AD plant and the resulting economic subsidies paid for renewable energy. Results show that renewable electricity and renewable heat sales supported by renewable electricity and renewable heat tariffs generates the greatest IRR (31.26%). All other uses of biogas generate an IRR in excess of 15%, and are judged to be a financially viable investment. Sensitivity analysis highlights the financial significance of: economic incentive payments and a waste management gate fee; and demonstrates that the fate of the digestate by-product is a source of financial uncertainty for AD investors.

Better by design: rethinking interventions for better environmental regulation.

Better regulation seeks to extend existing policy and regulatory outcomes at less burden for the actors involved. No single intervention will deliver all environmental outcomes. There is a paucity of evidence on what works why, when and with whom. We examine how a sample (n=33) of policy makers select policy and regulatory instruments, through a case study of the Department for Environment, Food and Rural Affairs (Defra), UK. Policy makers have a wide range of instruments at their disposal and are seeking ways to harness the influence of non-governmental resources to encourage good environmental behaviour. The relevance of each influence varies as risk and industry characteristics vary between policy areas. A recent typology of policy and regulatory instruments has been refined. Direct regulation is considered necessary in many areas, to reduce environmental risks with confidence and to tackle poor environmental performance. Co-regulatory approaches may provide important advantages to help accommodate uncertainty for emerging policy problems, providing a mechanism to develop trusted evidence and to refine objectives as problems are better understood.

Critical Reflections on Designing Product Service Systems

ABSTRACT In response to unsustainability and the prospect of resource scarcity, lifestyles dominated by resource throughput are being challenged. This paper focuses on a design experiment that sought to introduce alternative resource consumption pathways in the form of product service systems (PSS) to satisfy household demand and reduce consumer durable household waste. In contrast to many other PSS examples this project did not begin with sustainability benefits, rather the preferences of supply and demand actors and the bounded geographical locations represented by two UK housing developments. The paper addresses the process through which the concept PSS were designed, selected and evaluated, alongside the practical and commercial parameters of the project. It proposes the need for a shift to further emphasize the importance of the design imperative in creating different PSS outcomes that reorganize relationships between people, resources and the environment.

Better by design: business preferences for environmental regulatory reform.

We present the preferences for environmental regulatory reform expressed by 30 UK businesses and industry bodies from 5 sectors. While five strongly preferred voluntary regulation, seven expressed doubts about its effectiveness, and 18 expressed no general preference between instrument types. Voluntary approaches were valued for flexibility and lower burdens, but direct regulation offered stability and a level playing field. Respondents sought regulatory frameworks that: are coherent; balance clarity, prescription and flexibility; are enabled by positive regulatory relationships; administratively efficient; targeted according to risk magnitude and character; evidence-based and that deliver long-term market stability for regulatees. Anticipated differences in performance between types of instrument can be undermined by poor implementation. Results underline the need for policy makers and regulators to tailor an effective mix of instruments for a given sector, and to overcome analytical, institutional and political barriers to greater coherence, to better coordinate existing instruments and tackle new environmental challenges as they emerge.

Monetising the impacts of waste incinerators sited on brownfield land using the hedonic pricing method

In England and Wales planning regulations require local governments to treat waste near its source. This policy principle alongside regional self-sufficiency and the logistical advantages of minimising distances for waste treatment mean that energy from waste incinerators have been built close to, or even within urban conurbations. There is a clear policy and research need to balance the benefits of energy production from waste incinerators against the negative externalities experienced by local residents. However, the monetary costs of nuisance emissions from incinerators are not immediately apparent. This study uses the Hedonic Pricing Method to estimate the monetary value of impacts associated with three incinerators in England. Once operational, the impact of the incinerators on local house prices ranged from approximately 0.4% to 1.3% of the mean house price for the respective areas. Each of the incinerators studied had been sited on previously industrialised land to minimise overall impact. To an extent this was achieved and results support the effectiveness of spatial planning strategies to reduce the impact on residents. However, negative impacts occurred in areas further afield from the incinerator, suggesting that more can be done to minimise the impacts of incinerators. The results also suggest that in some case the incinerator increased the value of houses within a specified distance of incinerators under specific circumstances, which requires further investigation.

Hidden flows and waste processing - an analysis of illustrative futures.

An existing materials flow model is adapted (using Excel™ and AMBER™ model platforms) to account for waste and hidden material flows within a domestic environment. Supported by national waste data, the implications of legislative change, domestic resource depletion and waste technology advances are explored. The revised methodology offers additional functionality for economic parameters that influence waste generation and disposal. We explore this accounting system under hypothetical future waste and resource management scenarios, illustrating the utility of the model. A sensitivity analysis confirms that imports, domestic extraction and their associated hidden flows impact mostly on waste generation. The model offers enhanced utility for policy and decision makers with regard to economic mass balance and strategic waste flows, and may promote further discussion about waste technology choice in the context of reducing carbon budgets.

Parametric CAPEX, OPEX, and LCOE expressions for offshore wind farms based on global deployment parameters

ABSTRACT Installed wind energy capacity has been rapidly increasing over the last decade, with deployments in deeper waters and further offshore, with higher turbine ratings within new farms. Understanding the impact of different deployment factors on the overall cost of wind farms is pertinent toward benchmarking the potential of different investment decision alternatives. In this article, a set of parametric expressions for capital expenditure, operational expenditure, and levelized cost of energy are developed as a function of wind turbine capacity (), water depth (WD), distance from port (D), and wind farm capacity (). These expressions have been developed through a series of simulations based on a fully integrated, tested cost model which are then generalized through the application of appropriate nonlinear regression equations for a typical offshore wind farm investment and taking into account most current published cost figures. The effectiveness of the models are countersigned through a series of cases, estimating the predicted values with a maximum error of 3.3%. These expressions will be particularly useful for the preliminary assessment of available deployment sites, offering cost estimates based on global decision variables.

A decision support tool for Public Rights of Way officers based on the Analytic Hierarchy Process

Local Government Authorities (LGA) in England and Wales have statutory responsibility for the maintenance of Public Rights of Way (PROW), such as pathways and byways open to non-motorised traffic. The departments responsible have to compete for budgets and justify their expenditure in terms of councils’ priorities, such as well-being and environment. A need was identified for a simple decision support tool to provide a consistent and transparent framework for assessing the range of possible social and economic benefits from expenditure on PROW. The tool uses the Analytic Hierarchy Process to elicit weights forming the links from path attributes to users and usage to benefits, with a final stage to combine the benefits according to LGA priorities. It was successfully tested through case studies, where improving signage was generally found to be the most cost effective option, giving moderate benefits at low cost, whereas improving the physical conditions of the surface gave greater benefits at relatively high cost.

A cluster analysis of investment strategies in the offshore wind energy market

This paper maps different investor strategies in the offshore wind energy market based on data from existing wind farms in the UK. This is realized through the employment of cluster analysis, which classifies offshore wind energy investors - who have purchased equity stakes-in terms of the entry timing, exit timing, purchase timing and stake purchased. We, then, perform a SWOT analysis to identify the major strengths, weaknesses, opportunities and threats encountered by each cluster of stakeholders. Cluster analysis revealed the existence of three distinct investment strategy profiles: i) Late entry investors, ii) Pre-commissioning investors, and iii) Own-build-transfer investors. Corporate and institutional investors tend to be late entry investors, whose strategy is based on buying assets while they are fully operational avoiding construction risks, retaining a risk aversion profile. The exit timing of OEMs and EPCI contractors usually takes place before or right after the commissioning of the wind farm. Finally, major Utilities tend to keep the operating assets on their balance sheet and divest only part of them (mostly minority stakes) during the operating stage; Independent energy companies are found in both 2nd and 3rd cluster; however, exceptions may be observed.