Composition and drivers of energy prices and costs in energy intensive industries
Case studies in selected energy intensive industries, 2018 : final report - Study
The current report represents the final deliverable of the 2018 edition of the “Composition and Drivers of Energy Prices and Costs: Case Studies in Selected Energy Intensive Industries” (hereinafter “the Assignment”). The Assignment aimed to achieve two main objectives: 1. Providing well-grounded, bottom-up evidence of the composition and drivers of energy prices and energy costs faced by industrial operators in EU energy intensive sectors. 2. Assessing the impact of energy prices and costs and of their components on the cost competitiveness and, where possible, international competitiveness... of EU energy intensive sectors. In line with the Tender Proposal submitted by the Consortium led by CEPS (hereinafter “the Research Team”) and the Technical Specification prepared by the European Commission, this Report includes analytical chapters for all sectors covered by the Assignment as well as a cross-sectoral analysis of data collected at the plant level. More specifically, the remainder is structured as follows: • Chapter 1 details key methodological aspects. • Chapters 2 to 9 analyse and discuss data collected from plants operating in the following sectors: o Bricks and tiles o Wall and floor tiles o Glass tableware o Packaging glass o Aluminium o Steel o Fertilisers o Refineries. • Chapter 10 presents the cross-sectoral analysis. It is worth stressing that the selection of sectors aimed to ensure wide coverage of a broad range of features of energy intensive industries in the EU. For instance, the study examines gas-intensive sectors (e.g. bricks and roof tiles and packaging glass) and electricity intensive sectors (e.g. primary aluminium and EAF steel); sectors relying on solid fuels, such as coking coal (e.g. BOF steel) and sectors using crude oil (e.g. refineries); sectors concentrated in a limited number of Member States (e.g. ceramic tiles and primary aluminium) and geographically dispersed sectors (e.g. packaging glass, secondary and downstream aluminium); sectors dominated by large companies (e.g. primary aluminium and glass tableware) and sectors including more SME (e.g. bricks and roof tiles and ceramic tiles); net importers (e.g. aluminium and steel), net exporters (e.g. ceramic tiles and glass tableware), and sectors that are relatively less exposed to international competition (e.g. bricks and tiles and packaging glass). Further details on the main features of the sectors covered by this Assignment are provided in Annex A. Annex B provides a preliminary econometric analysis and decomposition analysis of cross-sectoral data.