Economic interpretation of the EFOM model

The Energy Flow Optimization Model (EFOM) is the supply part of the energy model complex of the Commission of the European Communities which has been used for a number of studies during the last decade. In this paper the economic interpretation of the model results is discussed on the basis of examples from recent studies using an extension of the model that includes emission abatement techniques and constraints on emissions of pollutants, emphasizing the modelling of the electricity system with combined heat and power.