The aim of the paper is to show a complex picture of energy system modeling with focus on partial equilibrium energy models and on specific conditions in the Czech Republic and to develop an optimization model of Czech electric sector allowing to analyze impacts of environmental regulations. We briefly discuss the advantages and drawbacks of partial equilibrium models, where we show that PE modes allow developing a model with a higher degree of detail of the one selected industry and also are more appropriate for technological change modeling.
We employ the model MESSAGE to construct a model of the Czech electric system and analyze the possible future development of the Czech electric system. By creation and evaluation of our scenarios we focus on impacts of EU ETS on the Czech electricity system as a whole; on optimal fuel mix; costs of electricity and on the amount of CO2 during the years 2006 – 2030.
Our model covers 81 % of electricity gross production and 95 % of electricity gross consumption in the Czech Republic in 2006. Based on our results, the implementation of EU ETS causes the total reduction of 238 million tons of CO2 during the years 2006 – 2030