Technological change in energy - REMIND

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Model Documentation - REMIND
Corresponding documentation
Model information
Institution Potsdam Institut für Klimafolgenforschung (PIK)
Concept Hybrid

Hybrid model that couples an economic growth model with a detailed energy system model and a simple climate model.

Solution method Inter-temporal optimization that maximizes cumulated discounted global welfare: Ramsey-type growth model with Negishi approach to regional welfare aggregation.
Anticipation Perfect Foresight

REMIND assumes endogenous technological change through learning-by-doing for wind and solar power, electric (BEV) and fuel cell vehicle (FCV) technologies, as well as variable renewable energy (VRE) storage, through global learning curves and internalized spillovers. The specific investment costs for wind, solar PV, and solar CSP decrease by 12, 20, and 9%, respectively, for each doubling of cumulated capacity. The capital costs of the generalized storage units for VRE, as well as of advanced vehicle technologies (BEV, FCV), decrease with a 10% learning rate. REMIND reduces learning rates as capacities increase such that the investment costs asymptotically approach endogenously prescribed floor costs.

For variable renewable energies, we implemented two parameterized cost markup functions for storage and long-distance transmission grids - see Section "Electricity". To represent the general need for flexibility even in a thermal power system, we included a further flexibility constraint based on Sullivan [1].

The techno-economic parameters of power technologies used in the model are given in Table 2 Techno-economic characteristics of technologies based on exhaustible energy sources and biomass. for fuel-based technologies and in Table 3 echno-economic characteristics of technologies based on non-biomass renewable energy sources. for non-biomass renewables. For wind, solar and hydro, capacity factors depend on grades, see Section "Non-biomass renewables"

As discussed in Section "Macro-economy", REMIND represents energy efficiency improvements via an exogenously prescribed increase in the efficiency parameters of the CES production function, as well as price induced reductions in energy demand and changes in technology choice. REMIND represents investment dynamics in terms of capital motion equations, vintages for energy supply technologies and adjustment costs related to the acceleration of capacity expansion (for further details see Section "Energy conversion").

  1. Sullivan P, Krey V, Riahi K (2013) Impacts of considering electric sector variability and reliability in the MESSAGE model. Energy Strategy Reviews 1:157–163. doi: 10.1016/j.esr.2013.01.001)