Energy-economic modelling of long term decarbonisation pathways: The policy impacts of the MARKAL-TIMES model family
Submitting Institution
University College LondonUnit of Assessment
Architecture, Built Environment and PlanningSummary Impact Type
EnvironmentalResearch Subject Area(s)
Economics: Applied Economics
Summary of the impact
The family of MARKAL-TIMES energy models have successively underpinned
every major recent UK government energy policy document on long-term
decarbonisation pathways. Enabled by the interdisciplinary critical mass
of the UCL Energy Institute, a ground-breaking research programme by
Strachan, Ekins et al has taken the UK's energy systems analytical
capacity from near zero to world-class. Specific examples of policy
impacts include assessment of decarbonisation costs in the DECC Carbon
Plan, and the quantification of electricity sector decarbonisation as an
essential enabling step to meet the targets set by the Committee on
Climate Change (CCC) in the legally adopted UK carbon budget periods.
Underpinning research
An interdisciplinary research team at the UCL Bartlett Faculty of the
Built Environment Energy Institute, led by Professor Neil Strachan and
Professor Paul Ekins (both at UCL since 2009) — with support from
lecturers Gabrial Anandarajah (since 2009) and Ilkka Keppo (since 2011) —
has developed the family of MARKAL-TIMES energy models. As a multi-year
multi-person endeavour, the development, maintenance and analysis of the
MARKAL-TIMES model has been enabled via dedicated energy systems modelling
funding of around £3 million from 2009 through to 2013. This has been
anchored by the UK Energy Research Centre (NE\G007748\1), of which the
Energy Systems theme has been led by Professor Paul Ekins since 2009, with
additional sources of income from UK Research Council projects, government
departments such as the Department of Energy & Climate Change (DECC),
statutory governmental bodies (Committee on Climate Change), regulators
(Ofgem), energy utilities (EON, EDF), European Commission (FP7) and NGO
funding.
The MARKAL-TIMES model family is an integrated energy system,
technology-rich optimisation framework. Some elements of this research
programme — notably the model code and software interfaces — came from an
international collaboration with a range of premier research institutes
via an implementing agreement of the International Energy Agency (IEA).
From 2005, Ekins and Strachan had led elsewhere the multi-institution
development of the UK MARKAL model. Since both moving to UCL in 2009, the
critical mass within the UCL Energy Institute enabled a step-change in the
scope and sophistication of successive model variants, including the
evolution from the MARKAL to the TIMES model platform, plus the
development of UK, EU and global model versions. Furthermore, UCL's
interdisciplinary modelling capacity allowed a range of interdisciplinary
models to be developed to provide a rich diversity of insights. These
insights included the interactions between technological and behavioural
change (MARKAL Elastic Demand), geographical drivers (MARKAL-GIS),
multi-regional impact (MARKAL England-Scotland), decision making under
uncertainty (Stochastic MARKAL), life-cycle analysis (TIMES-LCA), and
interactions with global drivers (ETM-UCL, TIAM-UCL).
This ground-breaking research programme has taken the UK's energy systems
analytical capacity to a world-class level. Key research insights emerging
from the UCL enhancements to research are as follows:
- Analysis with the UK MARKAL elastic-demand model demonstrated the
necessity of all sectors to contribute to carbon mitigation efforts,
underscoring the value of an energy systems approach. The early and key
role of the electricity generation sector in decarbonisation efforts was
a particularly striking finding [a].
- Analysis with the global TIMES model (TIAM-UCL) quantified the
critical role of global learning on the UK energy system's potential
transition to an alternately fuelled transport system [b].
- Analysis carried out using the UK MARKAL stochastic model quantified
the range of potential costs of a radical energy system decarbonisation
that requires an immediate and consistent implementation of carbon
pricing rising to a 10th to 90th percentile range from £100-400/ tCO2
by 2050 [c].
- Analysis carried out using the UK Elastic Demand MARKAL model
demonstrated the value of energy service demand reductions as an
immediate decarbonisation response, hedging against both future high
costs of decarbonisation as well as security of supply issues [d].
- Analysis reported to the Scottish Executive has illustrated the
opportunities and costs of decarbonisation pathways for a devolved or
independent Scotland [e].
References to the research
This research stream has generated over 15 peer reviewed journal and book
chapters, and has been presented in over 30 major international
conferences, and over 100 UK forums to a wide range of stakeholders.
Selected publications include:
[a] Strachan N. & Usher, W. (2012) `Failure to Achieve
Stringent Carbon Reduction Targets in a Second-best Policy World',
Climatic Change, 113 (2): 121-139. [DOI: 10.1007/s10584-011-0267-6]
[b] Anandarajah, G., McDowall, W. & Ekins, P. (2013)
`Decarbonising Road Transport with Hydrogen and Electricity: Long Term
Global Technology Learning Scenarios', International Journal of
Hydrogen Energy, 38 (8), 3419-3432. [DOI: 10.1016/j.ijhydene.2012.12.110]
[c] Usher W. & Strachan, N. (2012), `Critical Mid-Term
Uncertainties in Long-Term Decarbonisation Pathways', Energy Policy,
41: 433-444. [DOI: 10.1016/j.enpol.2011.11.004]
[d] Strachan N. (2011) `Business As Unusual: Existing Policies in
Energy Model Baselines', Energy Economics, 33 (2): 153-160. [DOI:
10.1016/j.eneco.2010.10.009]
[e] Anandarajah, G. & McDowall, W. (2012) `What are the costs
of Scotland's climate and renewable policies?', Energy Policy, 50,
773-783. [DOI: 10.1016/j.enpol.2012.08.027]
Details of the impact
It is difficult to overstate the importance of having a sophisticated and
transparent set of state-of-the-art energy systems models for proactive
and responsive engagement with the UK policy community. Models are the
integrating language of policy and provide the key numbers and insights
that form the backbone of the debate and resultant policy impacts. This is
particularly true in the highly topical and fast moving area of energy
policy, and especially the key goals of energy system decarbonisation and
energy security.
The Department of Energy and Climate Change (DECC), in its 2009 UK
Low Carbon Transition Plan [1], accepted the MARKAL elastic
demand model's finding (as described in [d]) of the critical role
of the electricity generation sector to enable wider decarbonisation
efforts in buildings and transport. Resultant electricity decarbonisation
policy mechanisms have been implemented as a key government priority with
latest efforts being support mechanisms under Electricity Market Reform as
legislated in the 2013 Energy Bill.
A continuing impact of the MARKAL-TIMES modelling effort for UK
government policy making has been in demonstrating the economic
feasibility of decarbonisation pathways (as described in [a]),
including the critical interplay between technological and behavioural
change (via energy service demand reductions). UK MARKAL-TIMES has
constituted the key technical reports on this topic for DECC's 2011 Carbon
Plan [2].
The quantification of electricity sector decarbonisation using MARKAL
models is an essential enabling step to meet the targets set by the
Committee on Climate Change (CCC). The CCC's carbon budget reports
(2009-13) outline the framework for legislated UK carbon budgets, with
successively commissioned MARKAL-TIMES modelling projects providing
long-term energy and emission scenarios. In 2011, the UK government
accepted the CCC's 4th budget period recommendation [3] for a 50%
reduction (from 1990 levels) in carbon emissions by 2025, with
underpinning technical appendices from the UK stochastic MARKAL model [c].
Dr David Joffe, the Head of Modelling for the Committee on Climate
Change, has since stated: `Since 2009, UCL's family of MARKAL/TIMES
energy systems models have been heavily utilised by the CCC to explore
the costs and trade-offs between different long-term decarbonisation
pathways. This underpinning research — published in successive CCC
reports — has been invaluable in the CCC's assessment of the appropriate
level of the 2050 target, what this means for measures required in the
medium term within the UK's carbon budget periods, and the policy
framework to deliver these.'
Placing UK decarbonisation efforts in a global context [b], the
TIAM-UCL model provided the key underpinning technical appendix to the
CCC's 2010 international aviation and shipping review [4], which
advocated including international transport emissions in the UK's
legislated carbon budgets for a fully comprehensive mitigation response to
climate change.
Such has been the authoritative benchmark of MARKAL-TIMES that UCL has
been instrumental in developing complementary energy modelling tools for
key stakeholders. This has included Strachan serving as a strategic
advisor on the development of the ESME energy systems model of the Energy
Technologies Institute from 2010, illustrating how UK industry has adopted
an energy systems modelling approach. In a parallel development, Ekins and
Strachan have successfully argued for the incorporation of cost metrics
(derived explicitly from MARKAL) to be incorporated into the DECC
Calculator [5] — the UK government's highly popular policy
engagement tool, which is downloaded by 10,000 UK users each month and has
been adapted into the nationally utilised My2050 schools classroom toolkit
released in November 2012.
Research has been used to provide evidence to policy makers and thus
contribute to informed political debate. On 24 May 2011, Strachan was
invited to give parliamentary oral evidence based on his modelling
expertise to The UK's Energy Supply: Security or Independence
review by the House of Commons Energy and Climate Change Select Committee.
Following the publication of his review of modelling exercises using the
UCL MARKAL model from 2009-2013 [6], all of which were directly
used in policy support as discussed above, Ekins made two presentations in
the Houses of Parliament. At the House of Commons on 26 February 2013,
Ekins presented a paper at a UKERC policy briefing on `The UK Energy
System in 2050: Comparing Low-Carbon, Resilient Scenarios' to a number of
MPs and their researchers, which fed directly into the then current debate
on the Energy Bill about the need to decarbonise the UK electricity
system. On 1 May 2013, Ekins then presented in the House of Lords on `The
Role of Gas in a Low-Carbon UK Energy System: Insights from Modelling',
which has informed the current debate about the role of shale gas from
2020 in the UK energy system.
In terms of sub-national energy policy-making, a multi-regional version
of the UK MARKAL model was presented to senior Scottish government and
industry representatives on the potential role of Scotland in meeting its
own and the wider UK's renewable energy targets, and subsequently
submitted as supporting evidence to the Scottish Parliament's Economy
Energy and Tourism Committee [7].
The reach of the MARKAL-TIMES research impact extends also to
international energy policy. As research lead on the Japan-UK research
project on international modelling on low carbon societies, UCL led an
international effort that contributed to the declaration and reaffirmation
through 2009-13 of a global long term target of a 50% reduction in
greenhouse gas emission in 2050. Furthermore the UCL team served as expert
reviewers and contributors to the International Energy Agency's flagship
Energy Technology Perspectives publications [8]. And on the basis
of his research at UCL [a, c, d], Strachan was appointed as lead
author on the `Energy System' chapter under Working Group III of the
Intergovernmental Panel on Climate Change 5th Assessment Report, with
interim reports in 2011-12 and the final report to appear in April 2014.
To demonstrate how UCL's systems modelling research has resulted in a
sea-change in how the UK now funds and uses energy models to underpin
policy making, the EPSRC has funded (as of 1 July 2013) a £5.7 million
whole energy systems modelling (wholeSEM) consortium (EP/K039326/1) as a
centrepiece of the Research Council's energy portfolio. Furthermore, a
memorandum of understanding was agreement in September 2013 between UCL
and DECC to utilise UK TIMES as the principal model for long-term UK
Government energy analysis.
Sources to corroborate the impact
[1] DECC (2009), The UK Low Carbon Transition Plan,
London: Department of Energy and Climate Change
[http://webarchive.nationalarchives.gov.uk/20121217150421/http://decc.gov.uk/en/content/cms/emissions/emissions.aspx]
[2] DECC (2011), The Carbon Plan, London: Department of
Energy and Climate Change
[www.gov.uk/government/publications/the-carbon-plan-reducing-greenhouse-gas-emissions--2]
[3] CCC (2010), The Fourth Carbon Budget — Reducing emissions
through the 2020s, London: Climate Change Committee 4th budget
report [http://www.theccc.org.uk/publication/the-fourth-carbon-budget-reducing-emissions-through-the-2020s-2/;
see in particular the supporting evidence in Chapter 3]
[4] CCC (2010), International Aviation & Shipping Review,
London Climate Change Committee, London [http://www.theccc.org.uk/publication/international-aviation-shipping-review/;
see the supporting evidence in Chapter 3]
[5] DECC (2011), 2050 Pathways: Exploring how the UK can meet
the 2050 emission reduction target using the web-based 2050 Calculator.
Updated model as of March 2011, London: Department of Energy &
Climate Change [http://www.gov.uk/2050-pathways-analysis]
[6] Ekins, P., Keppo, I., Skea, J., Strachan, N., Usher, W. &
Anandarajah G. (2013), `The UK Energy System in 2050: Comparing Low-Carbon
Resilient Scenarios', UKERC Research Report (UKERC RR/ESY/2013/001),
February 2013, London: UK Energy Research Centre
[http://www.ukerc.ac.uk]
[7] McDowall, W., Anandarajah, G. & Ekins, P. 2012 `Insights
into Scotland's energy and climate policies from energy systems modeling',
Fraser Economic Commentary, Special Issue No. 3, University of
Strathclyde, Glasgow, pp. 5-8 [Available at
http://www.scottish.parliament.uk/S4_EconomyEnergyandTourismCommittee/General%20Documents/FRASER_OF_ALLANDER_INSTITUTE.pdf,
PDF]
[8] IEA (2012), Energy Technology Perspectives 2012: Pathways
to a Clean Energy System. Paris: International Energy Agency [http://www.iea.org/etp/]