Industrial sector - POLES

Model Documentation - POLES
Model scope and methods - POLES Model concept, solver and details - POLES Temporal dimension - POLES Spatial dimension - POLES Policy - POLES Socio-economic drivers - POLES Population - POLES Economic activity - POLES Macro-economy - POLES Production system and representation of economic sectors - POLES Energy - POLES Energy resource endowments - POLES Fossil energy resources - POLES Uranium and other fissile resources - POLES Bioenergy - POLES Non-biomass renewables - POLES Energy conversion - POLES Electricity - POLES Heat - POLES Gaseous fuels - POLES Liquid fuels - POLES Solid fuels - POLES Grid, pipelines and other infrastructure - POLES Energy end-use - POLES Transport - POLES Residential and commercial sectors - POLES Industrial sector - POLES Other end-use - POLES Energy demand - POLES Technological change in energy - POLES Land-use - POLES Emissions - POLES Carbon dioxide removal (CDR) options - POLES Climate - POLES Non-climate sustainability dimension - POLES Appendices - POLES Data - POLES References - POLES
Corresponding documentation
AIM-Hub BLUES C3IAM COFFEE-TEA DNE21+ GCAM GEM-E3 GRACE IFs IMACLIM IMAGE MESSAGE-GLOBIOM POLES PROMETHEUS REMIND-MAgPIE TIAM-UCL WITCH
Previous versions
Archive of POLES version ADVANCE
Model information
Model link	http://ec.europa.eu/jrc/en/poles https://ec.europa.eu/jrc/en/publication/poles-jrc-model-documentation-0
Institution	JRC - Joint Research Centre - European Commission (EC-JRC), Belgium, http://ec.europa.eu/jrc/en/.
Solution concept	Partial equilibrium (price elastic demand)
Solution method	SimulationRecursive simulation
Anticipation	Myopic

The industry is represented in POLES through different sectors and processes.

The general modeling describes energy needs per sector / process dependent on an activity variable and energy prices. Total demand of energy depends on the activity variable and energy prices.

The activity variable is sectoral value added, or for the steel industry physical production of tons of steel. The latter depend on national demand and a global market, on which countries compete based on existing production capacities, the dynamics of the local market and the energy cost. The role of electrical steel increases with the amount of steel being recycled, blast furnace being the difference between total production needs and the contribution of electrical arc furnaces.

Competition across fuels / boilers (multinomial logit) takes place between oil, gas, coal, biomass and purchased steam based on costs for the user, considering the lifetime of existing equipment. The competition calibrated on historical data on prices and market shares.

Electricity needs, that also depend on the activity variable and electricity prices, can affect the need for other fuels through increased efficiency of the industrial processes.

The different industral sectors and processes are shown in the figure below.

Table 1: The industrial sectors in POLES

Sector	Process	Activity variable	Fuel, energy use	Fuel, non-energy use
Steel	Blast furnace	tons	Electricity, oil, gas, coal, biomass	coke
	Electrical	tons	Electricity
Non-metallic minerals		value added	Electricity, oil, gas, coal, biomass, hydrogen, steam
Chemistry		value added	Electricity, oil, gas, coal, biomass, hydrogen, steam	oil, gas, coal, biomass
Other industry		value added	Electricity, oil, gas, coal, biomass, hydrogen, steam

Note that the steel industry equations describe physical production, which depends on national demand and a global market, on which countries compete based on existing production capacities, the dynamics of the local market and the energy cost. The role of electrical steel increases with the amount of steel being recycled, blast furnace being the difference between total production needs and the contribution of electrical arc furnaces.