Cost-effective energy system measures studied by dynamic modelling

In a national electricity system there often exists a great potential for increasing the cost-efficiency of the electricity use. However, if the economic incentives for improving the use of the system are too weak, it is most likely that this potential will not be utilised. If electricity tariffs reflect real electricity costs, over the year and the day, cost-effective incentives will arise for introducing energy system measures that will reduce the energy system cost considerably. This paper presents two energy system analyses of an existing Swedish municipal energy system. The analyses are carried out with a simulation model for electricity use in industrial energy systems, and an optimisation model that is based on linear programming