Total annual costs calculation

The main cost figure in the ETM is the total yearly cost KPI that can be found in the model's Dashboard. The yearly total cost KPI is broken down into ten categories: heat, electricity, hydrogen, transport fuels, non-energetic fuels (feedstock), energy infrastructure, CCS in industry, insulation, flexibility, and vehicles.

Annual costs chart

Heat

This category includes depreciation costs, costs of capital, operation and maintenance costs, and fuel costs for all heating and cooling technologies, in all sectors (e.g. households heating appliances, industrial burners etc.). In addition, district heating network costs are included.

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CHPs are included in the Electricity category. Fuel costs of heating technologies using electricity or hydrogen are not included. These costs are taken into account in the Electricity and Hydrogen sections.

Electricity

Similar to the heat category, this includes all costs related to electricity production, including CHPs. In addition, costs of imported electricity are taken into account.

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The ETM does not compute revenues from electricity export.

Hydrogen

Similar to heat and electricity, this includes all costs related to hydrogen production. In addition, costs of imported hydrogen, hydrogen infrastructure costs and hydrogen storage costs are taken into account.

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The ETM does not compute revenues from hydrogen export.

Transport fuels

Fuel costs are based the final demand of the transportation sector and the given energy carriers costs. This does not include the transport systems themselves (such as cars, train and planes). This category also includes the costs of natural gas and oil transportation losses.

Fuel costs for hydrogen cars and electric cars are included in the Electricity and Hydrogen categories.

Non-energetic fuels

Besides the energetic use of fuels, fuels are also used non-energetically (e.g. feedstock in industry). This calculation determines the costs based on the final demand of non-energetic use of fuels in all sectors. Multiplied with the given energy carriers costs, this results in the total costs for non-energetic fuels.

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Hydrogen feedstock is included in the Hydrogen category.

Infrastructure

The network cost include annual investment and maintenance costs for both the power grid and (natural) gas network. These costs are only calculated for selected regions. For more information on the electricity network, see this

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Hydrogen and district heating infrastructure costs are included in the Hydrogen and Heat categories.

CCS in industry

This category includes costs for Carbon Capture and Sequestration (CCS) in the industry sector. The ETM takes into account a fixed amount per tonne CO2 captured. Users can change this amount with a slider.

Insulation

This category includes costs for insulation in the households and buildings sector. More information can be found here.

Flexibility

This category includes costs related to flexibility options such as batteries and power-to-heat. Electricity input costs are not taken into account: all costs related to electricity production are included in the Electricity category.

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Costs for batteries in electric vehicles are not included as these batteries are not primarily used for flex. If desired, users can include costs for EV with a slider (see Vehicles). Costs for power-to-hydrogen are included in the Hydrogen category.

Vehicles

This category includes (additional) investment costs in electric cars and hydrogen cars. By default, these costs are zero. Users can change this if desired.