International Atomic Energy Agency

One of five key areas to sustainable development where progress is possible

with the resources and technologies at our disposal today.

Capacity Building for

Sustainable Energy Development
Today, approximately one third of the world’s population — operating models installed on Member State computers;
lack access to modern energy services. Poverty eradica-
tion and sustainable development will require not just — training on the use of the models; and
access, but also clean and affordable energy services.
Expanding access to such services requires careful — guidance on evaluating energy options and planning
planning. The International Atomic Energy Agency (IAEA) sustainable sustainable energy strategies.
helps developing countries and economies in transition
build their energy planning capabilities with respect to all
three pillars of sustainable development — economic, Over the past three years, the IAEA has:
environmental, and social. The Agency develops and
transfers planning models tailored to their special — transferred its energy models to more than 60 energy
circumstances. It transfers the latest data on technologies, planning departments or institutions in both developed
resources, and economics. It trains local experts. It jointly and developing countries;
analyzes national options and interprets results. And the
IAEA helps establish the continuing local planning — trained over 350 local experts in developing countries;
expertise needed to independently chart national paths to and
sustainable development.

As the sole UN agency

building capacity in overall
IAEA Planning Models
energy planning, the Area Tools*
Agency’s assistance treats
Energy system analysis ENPEP, MESSAGE
all energy supply and
Power system analysis WASP, ENPEP, MESSAGE
demand options, including
Energy/electricity demand projection MAED, ENPEP
efficiency improvements,
Financial analysis of energy systems FINPLAN (WASP, ENPEP, MESSAGE)
equally. Indeed, for most
Environmental impacts of energy facilities SimPacts, WASP-IV, ENPEP
IAEA Member States,
nuclear power is not the * For further explanation, please see page 3
best near term option.

Through the full set of IAEA energy planning models, the — implemented 12 national projects and 4 regional
Agency can provide interested Member States with: projects (each involving 12–16 countries) analyzing
specific energy policy issues and providing guidance in
assessing options and evaluating overall energy
— up-to-date information and data on energy technolo- strategies and policies.
gies along the full energy chain, i.e., from resource
extraction to the supply of energy services at the level A current example is the 2001 regional project “Sustainable
of households, industries, and businesses; Energy Development in Sub-Saharan African countries”.

Towards Improved Quality of Life / Energy

Through this project, the IAEA is providing technical Once base year balances are established, trainees will then
assistance to strengthen institutional capabilities for develop future scenarios, specific to their countries’ situa-
assessing and projecting future energy needs in the 14 par- tions and objectives, which can be analyzed using other
ticipating countries. The energy demand analysis model, IAEA planning models. The keys to useful, enlightening
MAED, has now been transferred and local experts are scenarios are: systematic procedures to assure internally
being trained to apply this model to their particular situation. consistent input assumptions, especially for social, eco-
To apply MAED, the model philosophy, structure, logic, and nomic, and environmental factors, and a good understand-
mathematical approach must first be examined. Next data ing of the dynamic nature of modeling, i.e., the interplay
requirements, how best to compile and reconcile data from between assumptions, output evaluation, plausibility tests
diverse sources, and the construction of base year and the modification of initial assumptions. Finally, the
balances are determined. Together trainers and trainees training addresses quality control and uncertainties, and
apply these steps to the situation in the particular country provides assistance in translating results into guidance for
receiving training. policy formulation.

Figure 1. Model For Assessment of Energy Demand (MAED) Approach

INPUT
OUTPUT
• Energy sector data (base year
final energy balance) • Useful energy demand
• Scenario assumptions • Final energy demand
— Socioeconomic MAED • Electricity demand
— Technological • Hourly electric load
• Substitutional energy uses • Load duration curves
• Process efficiencies
• Hourly load characteristics

Figure 1 illustrates a general structure of the essential input and output elements of the MAED energy demand model. The
table below shows the different energy forms more specifically, and the different ways in which they are used in a typical
household in the Sub-Saharan countries involved in the IAEA regional project. Finally, Figure 2 shows the process of combin-
ing the energy demand calculated by MAED with economic information about all energy supply options available in order to
identify the most cost effective approach to balancing national energy supply and demand.

The different energy forms and the different ways in which they are used
in a typical household in the Sub-Saharan countries involved in this project.

Energy Forms by End-User Category in Households

Electric Water Air Space
Cooking Lightning
appliances heating conditioning heating

Non-commercial fuels • • •
Commercial • • • •
combustible fuels
(liquids, gaseous, solids)

Electricity • • • • • •
District heat • •
Local solar • • •
The IAEA’s energy planning services help Member States — preparing better and more effective national communi-
make informed policy decisions about their future energy cations to the UN Framework Convention on Climate
development by: Change on greenhouse gas inventories and sinks;

— strengthening local expertise in developing countries — helping senior policy makers in developing countries
for analyzing and evaluating national energy options, better appreciate the environmental costs and benefits
including all their technical, economic, environmental, of different energy options; and
and human health impacts;
— strengthening capabilities in developing countries
— introducing systematic analysis and planning proce- for their participation in international debates on
dures in national decision making on energy and sustainable energy development and climate change
environment policy; issues.

Figure 2. Energy and Power Evaluation Program (ENPEP)

INPUT OUTPUT

• Energy system structure Prices/Costs

(including vintage of plant and Supply
Demand
equipment
• Base year energy flows and
prices BALANCE Equilibrium
• Energy demand projections
(MAED)
• Technology and resource
options and their techno-
economic performance profiles
• Technical and policy Quantities per fuel
constraints or technology

IAEA Planning Models long term expansion plan for a power generating system.
Constraints may include limited fuel availability, emission
restrictions, system reliability requirements, and other factors.
MAED, Model for Assessment of Energy Demand: Optimal expansion is determined by minimizing discounted
total costs.
MAED evaluates future energy demands based on medium
to long term scenarios of socioeconomic, technological, ENPEP, Energy and Power Evaluation Program:
and demographic development. Energy demand is dis-
aggregated into a large number of end-use categories ENPEP, now used in approximately 60 developing countries,
corresponding to different goods and services. The influ- provides a comprehensive evaluation of energy system
ences of social, economic, and technological driving factors development strategies. It includes modules
from a given scenario are estimated. These are combined
for an overall picture of future energy demand growth. — to assess energy demand (MAED),
— to compute market clearing prices and balance energy
WASP, Wien Automatic System Planning Package: demand and supply under market conditions,
— to optimize expansion of the electric sector (WASP),
WASP is the most widely used model in developing countries and
for power system planning (over 100 countries). Within — to estimate environmental burdens from the energy
constraints defined by the user, WASP determines the optimal system.
FINPLAN, Model for Financial Analysis of Electric Sector SIMPACTS, Simplified Approach for Estimating Impacts of
Expansion Plans: Electricity Generation:

In developing countries, financial constraints are often the SIMPACTS is a user-friendly, simplified approach for esti-
most important obstacle to implementing optimal electricity mating the environmental impacts and external costs of
expansion plans. FINPLAN helps assess the financial via- different electricity generation chains. Designed for use in
bility of plans and projects. It takes into account different developing countries, it requires much less data, but pro-
financing sources — including export credits, commercial duces comparable results, relative to more sophisticated
loans, bonds, equity, and modern instruments like swaps data-hungry models. The SIMPACTS package covers
— and calculates projected cash flows, balance sheet, finan-
cial ratios, and other financial indicators. It is currently used — health, agricultural, forest, and materials damage,
in more than 20 developing countries.
— airborne and water pollution as well as solid waste, and
MESSAGE, Model of Energy Supply Systems and their
General Environmental Impacts: — different generating technologies.

MESSAGE is used to formulate and evaluate alternative

energy supply strategies for a country or region. The model
finds the optimal energy supply strategy for user defined
constraints on, for example, new investment limits, market Information about activities in capacity building for sustain-
penetration rates for new technologies, fuel availability and able development and energy planning is also available on
trade, environmental emissions, etc. MESSAGE is extremely the IAEA website:
flexible and can also be used to analyze energy/electricity http://www.iaea.org/worldatom/Programmes/Energy/pess/
markets and climate change issues. pessindex.shtml

For additional information contact: International Atomic Energy Agency Information Series
Division of Public Information
Mr. Ahmed Irej Jalal 02-01566 / FS Series 2/01/E
Planning and Economic Studies Section
Department of Nuclear Energy
International Atomic Energy Agency
Wagramer Strasse 5, P.O. Box 100
A-1400 Vienna, Austria
Tel: +43-1-2600-22780
Fax: +43-1-2600-29598
E-mail: A.Jalal@iaea.org