We calculated a fixed conversion rate for each solution to best approximate a real-world implementation. For example, instead of MW of installed capacity for offshore wind we transformed this into a number of turbines that could be built. The conversion is static, hence the only change comes from the amount spent on Russian fossil fuels. Also, since each conversion rate is based on analyses that are published with some lag time, usually between 1 and 2 years, we are accounting for this by normalising them with the average Eurozone inflation rate starting from the base year of observation for each report until April 2022. The corresponding inflation rates were 2.6% for 2021 and 7.4% for 2022 (Eurostat (2022); EBC (2022b)).
The amount calculated by the Russian fossil fuel tracker is then divided up equally per solution, meaning this does not represent an “OR” scenario, but rather an “AND” scenario.
The values used reflect either averages for the EU/Europe or high income economies in general. This means that some regional differences are getting blurred, but allows us on the other hand to better underscore the magnitude of green solutions that could be applied.
For USD to EUR conversion the official EBC exchange rate was used for the relevant base year, which is 1.1422 USD for 1 EUR for the year 2020 (applicable for IRENA (2021) references) and 1.1827 USD for 1 EUR for the year 2021 (applicable for IEA (2021) references) (EBC 2022a).
Installation cost refers in this case not only to the module cost but are including costs for engineering and construction of the specified unit as well and, in the case of solar photovoltaics and wind turbines, also costs for e.g., grid connection and cable routing (IEA (2021); IRENA (2021)).
Methodological break for each solution
- Solar photovoltaic rooftop (solar homes):
- Conversion factor: 1 Single family home equipped with Solar PV = 14,961 EUR
- Methodology: Installation costs of 1,550 USD/kWp by averaging inst. costs for Germany, France, Italy and Spain (IRENA 2021) and a capacity of 10 kWp per House (CANE 2022).
- Calculation: 1,550 USD/kWp ÷ 1.1422 USD/EUR × 10 kWp × 1.074 x 1.026
- Relevant references: IRENA (2021), ECB (2022a), CANE (2022), ECB (2022b), Eurostat (2022)
- Utility solar PV:
- Conversion factor: 1 Football pitch covered with Solar PV = 1,515,411 EUR
- Methodology: Installation costs of 1,100 USD/kWp by averaging inst. costs for Germany, France, Italy and Spain (IRENA 2021). Additionally, assuming standard 60-cell solar PV module with a size of 1.65 m² and 0.33 kWp (Echtsolar 2021) and 7,140 m² for a standard football pitch (UEFA 2018).
- Calculation: 1,100 USD/kW ÷ 1.1422 USD/EUR × 0.33 kWp × 7,140 m2 ÷ 1.65 m² × 1.074 x 1.026
- Relevant references: IRENA (2021), ECB (2022a), Echtsolar (2021), UEFA (2018), ECB (2022b), Eurostat (2022)
- Onshore wind turbines installed:
- Conversion factor: 1 Onshore Wind Turbine = 5,846,314 EUR
- Methodology: Installation costs of 1,515 USD/kW (IRENA 2021) and a capacity of 4 MW per Turbine (Vestas 2022).
- Calculation: 1,515 USD/kW ÷ 1.1422 USD/EUR × 4 MW × 1000 kW/MW × 1.074 x 1.026
- Relevant references: IRENA (2021), ECB (2022a), Vestas (2022a), ECB (2022b), Eurostat (2022)
- Offshore wind turbines installed:
- Conversion factor: 1 Offshore Wind Turbine = 32,743,215 EUR
- Methodology: Installation costs of 3,394 USD/kW (IRENA 2020) and a capacity of 10 MW per Turbine (Vestas 2022b).
- Calculation: 3,394 USD/kW ÷ 1.1422 USD/EUR × 10 MW × 1000 kW/MW × 1.074 x 1.026
- Relevant references: IRENA (2021), ECB (2022a), Vestas (2022b), ECB (2022b), Eurostat (2022)
- Homes insulated:
- Conversion factor: 1 Home insulated = 39,318 EUR
- Methodology: Costs for deep renovation (60-90% of energy saving) of 405 EUR/m² (BIPE 2021) and a 2022 EU-wide average floor area of 90.39 m² for permanently occupied dwellings – the data is a linear extrapolation based on available data from 2005-2012 (EC 2022).
- Calculation: 405 EUR/m² × 90.39 m² × 1.074
- Relevant references: BIPE (2021), EC (2022), ECB (2022b)
- Air-to-Air heat pumps installed in single family homes:
- Conversion factor: Cost per Heat pump installation = 11,079 EUR
- Assuming investment costs of 610 USD/kWth (IEA 2021) for an air source heat pump and a maximum capacity of 20 kWth for a single-family home heat pump (EC 2021)
- Calculation: 610 USD/kWth ÷ 1.1827 USD/EUR × 20 kWth × 1.074
- Relevant references: IEA (2021), ECB (2022a), EC (2021), ECB (2022b)
Buildings Performance Institute Europe (BIPE), 2020. Covid-19 Recovery: Investment opportunities in deep renovation in Europe. Available at: https://www.bpie.eu/wp-content/uploads/2020/05/Recovery-investments-in-deep-renovation_BPIE_2020.pdf [Accessed 28/04/2022 17:35 CET]
Climate Action Network Europe (CAN-E), 2022. Repowering for the People: Flagship actions the Commission’s plan ‘REPowerEU’ should feature in the current fossil fuel and energy prices crisis. Available at: https://caneurope.org/content/uploads/2022/05/Repower-for-the-People-PolicyBriefing.pdf [Accessed 06/05/2022 15:18 CET]
Echtsolar, 2021. PV-Modul Größe – Typen und Maße. Available at: https://echtsolar.de/pv-modul-groesse/ [Accessed 12/05/2022 10:17 CET]
European Central Bank (ECB), 2022a. Euro foreign exchange reference rates. Available at: https://www.ecb.europa.eu/stats/policy_and_exchange_rates/euro_reference_exchange_rates/html/eurofxref-graph-usd.en.html [Accessed 10/05/2022 16:23 CET]
European Central Bank (EBC), 2022b. Measuring inflation – the Harmonised Index of Consumer Prices (HICP). Available at: https://www.ecb.europa.eu/stats/macroeconomic_and_sectoral/hicp/html/index.en.html [Accessed 01/06/2022 18:15 CET]
European Commission (EC), 2021. Report From The Commission To The European Parliament And The Council – Progress on competitiveness of clean energy technologies 4 & 5 – Solar PV and Heat pumps, EC, Brussels. Available at: https://ec.europa.eu/energy/sites/default/files/progress_on_the_competitiveness_of_clean_energy_technologies.pdf [Accessed 30/05/2022 15:17 CET]
European Commission (EC), 2022. EU Buildings Database. Available at: https://ec.europa.eu/energy/eu-buildings-database_en [Accessed 10/05/2022 16:23 CET]
Eurostat, 2022. HICP – inflation rate. Available at: https://ec.europa.eu/eurostat/databrowser/view/tec00118/default/table?lang=en [Accessed 01/06/2022 17:30 CET]
International Energy Agency (IEA), 2021. World Energy Outlook 2021, IEA, Paris. Available at: https://www.iea.org/reports/world-energy-outlook-2021 [Accessed 30/05/2022 10:29 CET]
International Renewable Energy Agency (IRENA), 2021. Power Generation Costs 2020. Available at: https://www.irena.org/-/media/Files/IRENA/Agency/Publication/2021/Jun/IRENA_Power_Generation_Costs_2020.pdf [Accessed 02/05/2022 10:15 CET]
Union of European Football Associations (UEFA), 2018. UEFA Stadium Infrastructure Regulations. Available at: https://documents.uefa.com/r/qA7fJuXrAU7K42UpVsoDGQ/3ZY9uYcDyKXxwK~3_Pl2xw. [Accessed 12/05/2022 12:45 CET]
Vestas, 2022a. 4 MW Platform. Available at: https://www.vestas.com/en/products/4-mw-platform/4-mw-platform [Accessed 04/05/2022 10:15 CET]
Vestas, 2022b. V164-10.0 MW™. Available at: https://www.vestas.com/en/products/offshore/V164-10-0-MW [Accessed 04/05/2022 10:15 CET]