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POTEnCIA: the Policy oriented tool for energy and climate change impact assessment

An economic modelling tool designed to assess the impacts of alternative energy and climate policies on the EU's energy system, under different hypotheses about future technologies and energy market conditions.

Contributes to EC priorities:

Addressing new challenges in the European energy system

The European energy system has entered a phase of rapid and substantial changes, with important consequences over the decades to come.

This transformation is driven by multiple complex trends: environmental challenges such as the need for increasingly ambitious greenhouse gas emission cuts; policies aiming for a more efficient use of energy; market transformations such as the liberalisation of European energy supply; the rapid deployment of new renewable power generation and increasing concerns about the security of energy supply.

Why do we need an energy system model

To suitably analyse the impacts of policies on the EU's energy system, there is a need for an energy system model that can reflect these trends and address their underlying mechanisms. This means the model should realistically represent novel technologies for energy supply and demand at a high level of detail, as well as their future adoption and operation dynamics under different policy regimes. 

In particular, the impacts of decentralised renewable power generation on the broader energy system need to be captured — including possible impacts on networks. Finally, as policy action can lead to the premature replacement of equipment, the model should explicitly capture the corresponding costs of stranded investments.

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