PRIMES is a simulation model of the energy markets in the European Union. It simulates market equilibrium for energy supply and demand in the Member States by finding the equilibrium prices for 24 energy sources. The equilibrium is static (within each time period) but repeated in a time-forward path, with dynamic relationships. The model is highly disaggregated and has very differentiated technologies.
The model is mainly used for:
analysis of standard energy-policy issues: security of supply, strategy, costs etc;
analysis of environmental issues;
looking at the impact of technology standards, new technologies and renewable resources;
looking at energy efficiency, alternative fuels, trade and EU energy provision;
analysis of policy issues regarding electricity generation, gas distribution and refineries.
In summary, the characteristics of PRIMES are such that the model is:
elaborated at a European rather than at a national level, with the national economies being treated as regions of Europe;
focused on policy analysis of the energy sector;
a disaggregated energy model, with detailed treatment of the electricity-generation sector and energy technology choice;
modular, allowing for flexible treatment of different sectors.
The basic source of data for energy consumption by sector and fuel is Eurostat. Other sources include surveys of cogeneration operation and capacities and surveys on boilers. The MURE, IKARUS, ODYSSE databases and national sources are also used.