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Energy Technology Systems Analysis Programme - iea-etsap

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Figure 1: ETSAP tools and typical applications<br />

[Acronyms: MARKAL = MARKet Allocation; TIMES = The Integrated MARKAL - EFOM System; LP = Linear<br />

Programming; NLP = Non Linear Programming; VEDA = VErsatile Data Analyst; RD&D = Research,<br />

Development & Deployment]<br />

simultaneously, stepping through<br />

one period at a time to solve for<br />

the next n-periods; the 1st period<br />

in each solve is then fixed prior to<br />

stepping forward.<br />

1.2. Major enhancements that have<br />

been added to the MARKAL model to<br />

meet the needs of the EIA-SAGE<br />

model include:<br />

• The ability to run MARKAL in a<br />

time-stepped manner, meaning<br />

investment decisions are made<br />

in each period without knowledge<br />

of future events (often referred to<br />

as myopic or without foresight),<br />

whereas standard MARKAL is run<br />

in a clairvoyant manner; and<br />

• The initial development and<br />

subsequent refinement of the<br />

SAGE MarKeT SHaRe (MKTSHR)<br />

algorithm. The basis of this facility<br />

is to identify market segments or<br />

“groups of competing<br />

technologies” (e.g., all alternative<br />

fueled passenger vehicles), then<br />

accumulate the level of all the<br />

technologies in the market<br />

segment and redistribute to each<br />

technology in the group according<br />

to weighted shares as the relative<br />

cost.<br />

1.3. Major enhancements that have<br />

been added to the MARKAL model to<br />

meet the needs of the US Environment<br />

Protection Agency include:<br />

• The development of a Goal<br />

Programming formulation that<br />

permits the user to explore the<br />

trade-off between conflicting<br />

goals (e.g., least-cost and air<br />

quality) by assigning preferences<br />

to the various objectives being<br />

considered; and<br />

• The introduction of flexible timeslicing<br />

and thereby the removal<br />

of a long-standing MARKAL<br />

restriction that imposed a fixed<br />

segmentation of the electricity<br />

load curve by dividing the annual<br />

demand for and production of<br />

electricity into six distinct timeslices<br />

(3 seasons x 2 diurnal<br />

divisions), and three seasonal<br />

time-slices for heat. With flexible<br />

time-slicing, the user is able to<br />

control the number of seasons<br />

and the number of diurnal<br />

divisions.<br />

1.4. Other significant enhancements<br />

that have been added to MARKAL<br />

over the past several years include:<br />

• The development of a facility to<br />

model Lumpy Investment. This<br />

facility permits more<br />

sophisticated modeling in<br />

respect of lumpy investments<br />

(such as the construction of gas<br />

pipelines) by using mixed integer<br />

programming (MIP) techniques to<br />

model the all-or-nothing building<br />

of new capacity;<br />

• The development of a new<br />

Benefit/Cost report employing a<br />

new GAMS UnitB/C utility;<br />

• The development of a “RAT_FLO”<br />

facility that enables the user to<br />

associate commodity flows in/out<br />

of technologies with ADRATIO<br />

constraints; and<br />

• The provision of improved<br />

2

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