Energy system

An energy system is a system primarily designed to supply energy-services to end-users. The intent behind energy systems is to minimise energy losses to a negligible level, as well as to ensure the efficient use of energy. The IPCC Fifth Assessment Report defines an energy system as "all components related to the production, conversion, delivery, and use of energy". The first two definitions allow for demand-side measures, including daylighting, retrofitted building insulation, and passive solar building design, as well as socio-economic factors, such as aspects of energy demand management and remote work, while the third does not. Neither does the third account for the informal economy in traditional biomass that is significant in many developing countries. The analysis of energy systems thus spans the disciplines of engineering and economics. Merging ideas from both areas to form a coherent description, particularly where macroeconomic dynamics are involved, is challenging. The concept of an energy system is evolving as new regulations, technologies, and practices enter into service – for example, emissions trading, the development of smart grids, and the greater use of energy demand management, respectively. Energy industry and Energy modeling From a structural perspective, an energy system is like any system and is made up of a set of interacting component parts, located within an environment. These components derive from ideas found in engineering and economics. Taking a process view, an energy system "consists of an integrated set of technical and economic activities operating within a complex societal framework". The identification of the components and behaviors of an energy system depends on the circumstances, the purpose of the analysis, and the questions under investigation. The concept of an energy system is therefore an abstraction which usually precedes some form of computer-based investigation, such as the construction and use of a suitable energy model.