Energy conversion - GEM-E3

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Model Documentation - GEM-E3

Corresponding documentation
Model information
Model link
Institution Institute of Communication And Computer Systems (ICCS), Greece, .
Solution concept General equilibrium (closed economy)
Solution method Optimization

Table 3: Alternative power generation technologies

Coal Oil Gas Coal w/ CCS Oil w/ CCS Gas w/ CCS Biomass Bio w/ CCS Non-Biomass renewables Nuclear Other
Electricity x x x x x x x x

Alternative power generation technologies (conventional: coal, oil, gas and RES: hydro, biomass, solar, wind, coal and gas CCS and nuclear) are represented separately in the GEM-E3. “Electricity” sector represents power transmission and distribution. For the depletable resource sectors (coal, oil, gas) reserves are considered to be a discrete production factor. The international price of the fossil fuel is calculated so as to balance total supply and total demand.

Energy and fuels enter at different levels of the nesting scheme of the production function, always linking the demand for them at a lower level of the nesting scheme to the bundle to which they belong, with different substitution elasticities at each level. This gives finally a cost-minimising demand for energy and fuels. For the non-energy sectors energy is split at the 4th level of production between electricity and fuels. For the sectors whose production is based on natural resources, production is split at the 1st nesting level between fossil fuel resources and an aggregate bundle consisting of capital, labour and material-energy. The latter at the 2nd stage is disaggregated into the material-energy bundle. At the 3rd level the material-energy bundle is divided into its component parts. Production of power supply sectors is split at the 1st level of the power supply sector into the bundle of power producing technologies and the transmission and distribution part. At the 2nd level, all power producing technologies identified in the model are in the same nest. Transmission and distribution bundle is disaggregated to capital, skilled and unskilled labour and materials. For the power producing technologies one level of production function (including capital, labour and fuels) is considered.