ABSTRACT
The objective of energy systems analysis is to understand the energy production and supply system and the relationships to consumer energy and to the economy. Energy systems analysis is necessary to identify and evaluate sustainability issues and potentially beneficial developments. Figure 3.1 demonstrates the flow of energy and the flow of money through the economy. Money, created and circulated in the economy, is not subject to any physical constraints. In contrast, the energy and resources supplied to the economy by energy transformation systems and the associated environmental impact are subject to both technological and resource constraints. For the development of sustainable energy systems, it is important to evaluate the potential of a proposed energy production system to substitute for fossil fuels. It is also important to evaluate the adaptive potential of the end use and the upstream effects of demand. The energy provided to the end user has to be “economical,” meaning that it has to be priced at an acceptable market price, but must also cover the total production cost including any waste disposal or emissions costs.
