A new partial equilibrium model will be developed and assessed for the energy sector and markets of the Community.
The PRIMES model combines the detailed "bottom-up" technological approach conventionally used in energy system models with an accurate representation of the different energy markets and the feedback between supply and demands as determined by market prices. The PRIMES model achieved a high level of technological detail, making it an ideal tool for the analysis of energy research and design strategy. PRIMES incorporates a substantial amount of environmental data which makes it suitable for the examination of environmental policy options, such energy taxes, emission constraints, and emission permit trading. It was also designed so that it can incorporate external costs associated with energy production.
The PRIMES project proposal aims at building a partial equilibrium model for the European energy system. The PRIMES model will:
- explicitly compute the energy prices of equilibrium;
- have a flexible modularised structure;
- cover in full detail both the country-specific energy systems and the overall energy market, clearing at the European Community level; - combine an engineering-oriented representation of energy-supply with analytical econometric functions for energy demand.
The different steps in building the model are the following: 1. Mathematical specification of the model architecture and the model building blocks
2. Specification and implementation of the power generation block of the model
3. Specification and implementation of the environmental module, evaluation of externalities and related policy instruments
4. Specification and implementation of the basic model framework (input/output, accounts, trade matrix) for both the full and the minimum standards model
5. Model solution algorithms and computer support
6. Model running for testing and evaluation purposes
Funding SchemeCSC - Cost-sharing contracts
3000 Louvain / Leuven