Methods for determination of side effects
The valuation of NEBs can be a detailed calculation of the side effects using available data or a stated value estimation, where a person who has been closely associated with the project makes the assessment. For the latter, the value is based on a subjective valuation rather than calculations.
Whether results from the calculated or estimated methods will be of higher importance, when considering an investment in an energy saving project, is up to the individual decision maker.
Finally, the value of the NEBs is valuated in relation to the economic value of the energy saved.
The saved energy is used as an index of 100 percent – that is, the monetary value of the saved energy, now and in the future, which is an expected and measurable benefit following the investment. The NEBs are valuated relative to this index. The figure below gives an example.
The tool can handle both positive and negative side effects from energy saving projects, as well as estimations and calculations, and one advantage of this method is that it eliminates the need to translate everything into monetary terms (e.g. DKK, Euro, Dollars). All of which makes it possible to compare and evaluate a range of energy saving projects that make it possible to include the NEBs in assessments of an energy saving project.