In the previous chapter we have seen that there are multiple options when deciding about a simple energy system’s supply. To decide which of those options is the one emerging we need some criteria to base this decision on, like costs, emissions or other factors.

Models can then be designed either with a system perspective in mind – choosing the best option based on the decision criteria – or with a more market perspective in mind – modelling market actors that make decisions based on specified criteria. Both ways are equally valid modelling approaches.

In this chapter we will focus on the system perspective while addressing the basics of optimization models.

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