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Strategic Energy System Analysis


Strategic Energy System Analysis

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Partners: IEA Energy Technology Systems Analysis Program
Customers: Ministries, Energy companies, Research Programmes


Within the coming decades, energy systems will be over going a fundamental transition from largely fossil-fuel based energy supply into a low carbon economy. Massive investments into new energy infrastructure are expected to be required for accomplishing the transition. Maintaining both a secure and economically reasonable energy supply system is therefore facing challenges in many countries, particularly because making long-term decisions under the changing conditions is a difficult task for both private investors and public policy makers.


VTT has implemented a detailed multi-region energy system model, based on optimization, which is specifically designed to support strategic long-term decision-making related to new energy system investments, assessments of the role of new technologies and their environmental impacts, and policy analysis. Different variants of the model can be used for analyses on the global level, European and Nordic level, and even on the community level. The methodology of the model has been developed under the IEA ETSAP programme, with VTT maintaining the core part of the underlying software.


Model-based energy system analysis provides valuable support for strategic decision-making by:

  • identifying the most competitive new energy technologies and new investment options
  • evaluating the economic and environmental performance of various technology solutions in the system
  • estimating the impacts of new policy measures on the future energy system
  • finding robust strategies for hedging against long-term uncertainties