Model for the analysis of CHP in an international perspective

The model is developed in response to the trend towards internationalisation in the electricity sector. Further, the ongoing process of deregulation of the energy sector highlights this and contributes to the need for overview and analysis. The model contains a representation of the basic energy technologies (chp, condensing, hydro, wind and others) and electricity transmission between the various subregions. The model permits analyses of dynamic phenomena like investments in generation and transmission capacities, fuel consumption, prices of electricity and heat, emissions and (where relevant) marginal prices on emission quotas. The model includes representation of price elastic demands for electricity and heat. A guiding principle behind the construction of the model has been that it may serve as a means of communication in relation to the policy issues that already are or that may become important for the region. Therefore, emphasis has been put on documentation, transparency and flexibility of the model. This is achieved in part by formulating the model in a high level modelling language (GAMS), and by making the model, including data, available at the internet (www.Balmorel.com). Potential users of the Balmorel model include research institutions, consulting companies, energy authorities, transmission system operators and energy companies