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  <front>
    <journal-meta />
    <article-meta>
      <title-group>
        <article-title>TIMES_PT: Integrated Energy System Modeling</article-title>
      </title-group>
      <contrib-group>
        <contrib contrib-type="author">
          <string-name>João Pedro Gouveia</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Luís Dias</string-name>
          <email>luisdias@fct.unl.pt</email>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Patrícia Fortes</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <contrib contrib-type="author">
          <string-name>Júlia Seixas</string-name>
          <xref ref-type="aff" rid="aff0">0</xref>
        </contrib>
        <aff id="aff0">
          <label>0</label>
          <institution>CENSE - Center for Environmental and Sustainability Research, Faculdade de Ciências e Tecnologia, Universidade Nova de Lisboa 2829-516</institution>
          ,
          <addr-line>Caparica.</addr-line>
          <country country="PT">Portugal</country>
        </aff>
      </contrib-group>
      <abstract>
        <p>The complexity of energy systems operation and the necessity to design secure and reliable systems, compatible with greenhouse gas (GHG) mitigation goals, have justified the development of energy models. They are capable of representing detailed energy systems (technical and economic characteristics) and the interconnections between supply and consumer sectors, assessing energy consumption and production pathways. Energy modeling tools have been widely used to help energy planners to assess energy systems; from different approaches as the impacts of alternative energy and environmental policies, or the competitiveness of different energy technologies. This paper provides an overview of the energy-environmental-economic modeling tool TIMES_PT, the last generation of the IEA/ETSAP integrated technological energy models, with a focus on its structure, functioning, and calibration for the case of the Portuguese energy system. Applications cases of TIMES_PT, namely for the design of low carbon scenarios for the long-term, are presented. Innovative developments on linking TIMES_PT with a macro-economic model (GEM-E3_PT) and the assessment of non-technological variables are also described.</p>
      </abstract>
      <kwd-group>
        <kwd>TIMES_PT</kwd>
        <kwd>Energy modeling</kwd>
        <kwd>Low carbon scenarios</kwd>
        <kwd>Energy system</kwd>
        <kwd>Portugal</kwd>
      </kwd-group>
    </article-meta>
  </front>
  <body>
    <sec id="sec-1">
      <title>-</title>
      <p>
        Since the 70’s energy models have been widely used to support energy planning. In
that time, models were used to understand the implications of an oil embargo in
energy supply security. More recently, climate change and the need to reduce GHG
emissions has become one of the main issues in energy planning [
        <xref ref-type="bibr" rid="ref1">1</xref>
        ]. Energy models
outline how the transition to a more secure and decarbonized energy system can be
achieved, identifying the competiveness of energy technologies and giving insights
about the most cost-effective energy and environmental policies.
      </p>
      <p>One of the major energy optimization tools used are the bottom-up technology
MARKAL (MARKet ALlocation) and TIMES (The Integrated MARKAL-EFOM
System) models. These models are used by more than 100 institutions and countries
and supported under the ETSAP/IEA.</p>
      <p>
        TIMES_PT [
        <xref ref-type="bibr" rid="ref2">2</xref>
        ] is a dynamic linear optimization peer-reviewed model corresponding
to the implementation for Portugal (PT) of the technological based model generator
TIMES [
        <xref ref-type="bibr" rid="ref3">3</xref>
        ]. TIMES_PT represents, in detail, the entire chain of the Portuguese energy
system from energy supply, including energy imports and production, to
transformation, distribution, as well as end-uses consumption and energy trade, considering
different energy carriers.
      </p>
      <p>The objective of the TIMES model is the satisfaction of an exogenous energy
service demand at the minimum total system cost over the entire planning horizon (i.e.
the optimal energy-technology pathways). Thus, supported by a database of more than
2000 technologies, the model determines the optimal mix of technologies and fuels at
each period, the associated emissions and trading activities.</p>
      <p>
        The TIMES_PT model has been extensively used in several national and international
studies and its technological database has been continuously updated and validated by
national stakeholders and international literature. TIMES_PT, as other TIMES
models, is written in General Algebraic Modeling System (GAMS) language [
        <xref ref-type="bibr" rid="ref4">4</xref>
        ].
      </p>
      <p>This paper aims to provide an overview of the energy-environmental-economic
modeling tool TIMES_PT, focused on its general features and main components
(Section 2), and applications cases (Section 3). Section 4 of the paper concludes and
presents innovative features under development.
2</p>
    </sec>
    <sec id="sec-2">
      <title>General characteristics of TIMES_PT</title>
      <p>
        As abovementioned, TIMES_PT is a peer-reviewed linear programming optimization
bottom-up technology model. This section describes the main features of the model as
well as its specific characteristics that have been improved or updated in the last
years. The TIMES_PT model formulates a single, overall mathematical programming
(optimization) problem that covers the energy supply system, according to equation 1
[
        <xref ref-type="bibr" rid="ref3">3</xref>
        ]:
 =   !!!! !!!"#$%   1 + !,!
!"#$!!!
∗  (, )
(1)
Where the NPV is the net present value of the total costs, ANNCOST is the total
annual cost, d is the general discount rate, r is the region, y is the years, REFYR is the
reference year for discounting and YEARS is the set of years for which there are costs.
TIMES_PT model uses the partial equilibrium version of TIMES, where the demand
for energy services depends endogenously on own price elasticity. The model is
usually run to deliver information on 5-year periods.
      </p>
      <p>
        TIMES_PT represents the energy system of PT and its possible long-term
developments. The actual system encompasses all the steps from primary resources in place
to the supply of the energy services demanded by energy consumers, through the
chain of processes which transform, transport, distribute and convert energy into
services [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ]. Figure 1 presents an overall view of the structure of the energy system
modeled in TIMES_PT.
      </p>
      <p>
        Each element in the network is characterized by several input parameters. The
TIMES_PT technological database has more than two thousands of existing and
future energy related technologies. Technologies are described by means of technical
data (e.g. capacity, efficiency), environmental emission coefficients (e.g. CO2, SOx,
NOx), and economic values (e.g. capital cost, date of commercialization). Possible
future developments of the system are driven by reference demands for energy
services (e.g. commercial lighting, residential space heating, air conditioning, mobility
and many others), and the supply curves of the resources (e.g. amount available at
each price level) [
        <xref ref-type="bibr" rid="ref6">6</xref>
        ].
      </p>
      <p>
        Several assets distinguish TIMES_PT from European aggregated models like PET
(Pan European TIMES [
        <xref ref-type="bibr" rid="ref5">5</xref>
        ]): 1) the information on the majority of technological
database is validated by national energy and industry related stakeholders reflecting
specific national characteristics; 2) the Portuguese energy system and current policies and
expectations are fully detailed; making TIMES_PT a well-established tool for
Portugal. There are also a few general differences for other European national models (e.g.
[
        <xref ref-type="bibr" rid="ref7">7</xref>
        ]) like 1) the inclusion of air pollutants like nitrogen oxides, sulfur dioxides and
particulate matter and 2) the disaggregation of the national emissions as included/not
included in the EU-ETS.
2.1
      </p>
      <sec id="sec-2-1">
        <title>Time horizon and Time slices</title>
        <p>
          TIMES_PT is a long-term model designed to explore the development of the PT
energy system till 2050 through the computation of projections for the period
20052050. While in its original version, developed within NEEDS project [
          <xref ref-type="bibr" rid="ref8">8</xref>
          ], the model
was calibrated to 2000 data, the current version is fully recalibrated to 2005 data. For
the year 2010 the model results are partly validated to national statistics [
          <xref ref-type="bibr" rid="ref10 ref9">9-10</xref>
          ] and
taking into account national short-term expectations (e.g. installed capacity).
        </p>
        <p>Annual flows of energy consumption and production are split by season - spring,
summer, fall, winter; and daily load profiles - night, day and peak, considering the
Portuguese electricity demand profile.
2.2</p>
      </sec>
      <sec id="sec-2-2">
        <title>Representation of the primary supply sectors</title>
        <p>The supply side of the TIMES_PT model represents the primary energy sector:
resource extraction or imports, processing and transport to transformation – plants and
refineries, coke ovens and bio-conversion, etc. – followed by transport and
distribution of the final energy products.</p>
        <p>
          Each primary resource is modeled independently, and represented by a linearized
stepwise supply function. The number of steps approximating each curve depends on
the resource and on the country reserves. The energy commodities are disaggregated
to the level of detail of the extended national energy balances reported by [
          <xref ref-type="bibr" rid="ref9">9</xref>
          ].
2.3
        </p>
      </sec>
      <sec id="sec-2-3">
        <title>Representation of the demand sectors</title>
        <p>TIMES_PT model includes five main end-use sectors: Agriculture (AGR), Industry
(IND), Services (SERV), Residential (RSD) and Transport (TRA).</p>
        <p>The AGR sector is represented in a simplified way, and future energy demand is
driven by the projection of the sectorial economic activity.</p>
        <p>Regarding IND, TIMES_PT model breaks-out the national industrial sector in
eleven sub-sectors: hollow and flat glass, high and lower quality paper, chemistry,
cement, iron &amp; steel, lime, other non-ferrous metals, other non-metallic minerals and
other chemical. Each of them includes diverse manufacturing processes and is
modeled according to its mass and energy balance.</p>
        <p>The SERV sector represents several different economic sub sectors like offices,
banks, hospitals, etc. However, due to the lack of data for PT on specific sub sectors
energy consumption and equipment, this sector is modeled in an aggregated way,
considering two types of SERV - large (&gt;1000m2) and small (&lt;1000m2). The SERV
sector energy demand includes: space heating and cooling, water heating, cooking,
lighting, refrigeration and other electric equipment.</p>
        <p>RSD sector includes the same categories as the SERV, but improved disaggregation
on electric equipment including cloth washing and drying machines and cloth
washing, among others. The devices that supply warm water, space heating and cooling are
broken out by building type as its need vary significantly – namely multi apartment
building, single house in urban areas and single house in rural areas.</p>
        <p>
          The TRA sector corresponds to the economic sector “transport services” and
private mobility. The demand for TRA is first broken out by: road, rail, navigation and
aviation. Road and rail transport are split between passenger and freight. The demand
for road passengers’ transportation is further divided to short and long distance
private car transport, urban busses, intercity busses and motorcycles. Passenger’s rail
transport is further divided into urban metro transport and intercity train transport.
Freight transport is disaggregated into road transport by heavy and light trucks and
intercity rail transport [
          <xref ref-type="bibr" rid="ref11">11</xref>
          ].
2.4
        </p>
      </sec>
      <sec id="sec-2-4">
        <title>Energy Services Demand</title>
        <p>
          Energy end-use demand is an exogenous model input, commonly generated according
to the methodology presented in [
          <xref ref-type="bibr" rid="ref12">12</xref>
          ]. This energy services demand generation is
supported by a top-down method for industry, services and agriculture and bottom-up
calculation for buildings [
          <xref ref-type="bibr" rid="ref13">13</xref>
          ] and transport. The top-down method is mainly sustained
by the sector value added growth, while the bottom-up method is more complex and
depends on several drivers, namely the number and characteristics of the dwellings,
occupancy rate and building area, transport typology, population, average travel km,
among other parameters.
2.5
        </p>
      </sec>
      <sec id="sec-2-5">
        <title>Renewable Energy Potential</title>
        <p>For Portugal, the endogenous primary energy potential solely relates to renewable
energy sources (RES) once there are not known endogenous fossil resources. For
most resources the potential is given not only having in mind the technical potential
but also possible deployment of technologies in the near future.</p>
        <p>
          These technical economical potentials restrict the use and future deployment of
each technology, limiting its capacity. Generally speaking, the 2020 figures are in line
with the expectation presented in National Renewable Energy Action Plan [
          <xref ref-type="bibr" rid="ref14">14</xref>
          ], after
that the potentials are a result of national stakeholders best guess and analysis (see
[
          <xref ref-type="bibr" rid="ref10">10</xref>
          ]).
2.6
        </p>
      </sec>
      <sec id="sec-2-6">
        <title>Primary Energy Prices</title>
        <p>
          Primary energy prices definition is crucial for setting the boundaries of an energy
system future development. Average primary energy import prices projections are
annually updated based on the scenarios from [
          <xref ref-type="bibr" rid="ref15">15</xref>
          ]. The import costs until 2050 for
the different types of liquid biofuels (e.g. bioethanol) and due to no best available
information are linked to the oil energy price. Extraction costs for municipal solid
wastes; biogas and sludge are originated from [
          <xref ref-type="bibr" rid="ref16">16</xref>
          ] The import costs for wood
biomass are from [
          <xref ref-type="bibr" rid="ref17">17</xref>
          ] and endogenous forestry and wood waste biomass production
from [
          <xref ref-type="bibr" rid="ref18">18</xref>
          ].
2.7
        </p>
      </sec>
      <sec id="sec-2-7">
        <title>Technology costs and characteristics</title>
        <p>The evolution of the costs of supply and demand technologies between 2010 and
2050, are dependent on the actual expectation in terms of development and
implementation, and are crucial to evaluate the competitiveness of the technologies. The model
combines the technical economic data with energy prices to dynamically calculate
supply cost curves for year and energy demand category. The combination between
supply cost curves defines the competitiveness of the technologies. Fig. 2 presents an
example of a supply curve for cooling services buildings.
40
J/€P
M30
20
10
0</p>
        <p>INVCOST</p>
        <p>FIXCOST</p>
        <p>VARCOST</p>
        <p>FUELCOST
Non,reversible4 Room4air, Roof,top4central4
electricity4heat4 conditioner4 electric4chiller4
pump4</p>
        <p>Air4fans4</p>
        <p>Centralized4 Non4reversible4 Centralized4gas4
electrical4air4 gas4heat4pump4 air4conditioner
conditioner4
TIMES_PT technological database is frequently updated in order to reflect recent
technological developments and national specificities. Table 1 presents, an example
investment costs expectations for different RES and combined cycle natural gas
power plants for Portugal.
Availability factors are also an important characteristic of a technology, especially for
RES, influencing its future uses. For wind turbines and solar technologies the
availability was defined based on the data from the production of the existing plants and
parks in Portugal and Spain and national stakeholder’s. The availability factors for
hydro power plants are updated to an average Portuguese hydraulicity year.</p>
      </sec>
    </sec>
    <sec id="sec-3">
      <title>Application cases</title>
      <p>TIMES_PT model can be used for a wide set of policy and technological analysis
associated with GHG and air pollutants emissions and energy related activities (e.g.
Fig. 3). This section presents a sample of international and national projects where
TIMES_PT has been used for different purposes.</p>
      <p>•
•
•
•</p>
      <p>COMET - Integrated infrastructure for CO2 transport and storage in the
west Mediterranean - is a EU research project aiming at identifying and
assessing the most cost effective infrastructure of CO2 transport and geologic
storage, that will be able to serve the West Mediterranean area (Spain,
Portugal and Morocco), as well as the location, capacity and availability of
potential CO2 storage in geological formations.</p>
      <p>HybCO2 - Hybrid approaches to assess economic, environmental and
technological impacts of long term low carbon scenarios: the Portuguese case
is a national research project aiming to develop and implement two hybrid
modeling tools to improve the cost-effectiveness assessment of
energy/climate policy instruments.</p>
      <p>
        Low Carbon RoadMap: Portugal 2050 - outlines how the transition to a low
carbon economy in Portugal can be achieved, focusing on changes in the
national energy system and evaluating its economic impact. The model was
used to outline a -60% and -70% GHG decarbonization pathways (face to
1990) [
        <xref ref-type="bibr" rid="ref10">10</xref>
        ].
      </p>
      <p>
        RoadMap for New Energy Technologies: Portugal 2010-2050 - Policy
support project for assessing the competitiveness of national energy
technologies, namely RES electricity generation and electric mobility technologies
and its long-term impact in the PT energy system [
        <xref ref-type="bibr" rid="ref12">12</xref>
        ].
600
400
200
      </p>
      <p>0
-­‐200
-­‐400
-­‐600
-­‐800
-­‐1000
77%
77%
80%
60%
50%
40%
30%
20%
10%
0%
The complexity of energy systems operation and the necessity to design secure and
reliable systems, compatible with GHG mitigation goals, have justified the
development of energy models. In this paper we describe the linear optimization model
TIMES_PT that has been improved and updated to reflect the PT energy system and
policies, and selected projects supported by it. Although technological based models
have been useful to design future scenarios of energy systems, they present limitations
that have been identified and researched.</p>
      <p>Future work will advance energy modeling in two areas: a) by integrating
nontechnological features as the case of consumer behavior in residential sector, based on
the knowledge behind energy consumption drivers; b) by linking with an economic
computable general equilibrium (GEM-E3_PT) constituting a hybrid
technologyeconomic platform (HybTEP), which overcome the state of the art absence of
macroeconomic feedbacks of different energy system pathways, namely the impact on gross
domestic product or industry production, underestimating the costs of mitigation
policies. These advancements will improve greatly the ability to model energy systems
and reduce uncertainty for the medium to long term.</p>
    </sec>
  </body>
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