Introducing multi-stage and stochastic approach within household energy requalification model

Energy system models are crucial to plan energy system pathways and understand their impacts. They represent the energy system according to different technical and methodological considerations. The study presents an energy modeling framework to capture the complexities of the household energy system, that provides insights on optimal technology selection and dispatch strategies. It combines the energy modeling, which is a bottom-up approach with high details, with the input-output approach which is a top-down approach that captures the inter-sectoral relations, to use it as an energy input-output approach which provides a supply consumption system and could be used for capturing the energy cost of goods and services for final demand. The framework also gives the ability of multi-stage decision making to the household by using the dynamic approach. Unlike most of the previous works on energy input-output modeling, this framework tries to answer the question of uncertainties within the system by using stochastic programming. A household with different energy needs and different available technologies will be modeled. The work shows how an uncertain final demand could change the energy costs, both investment and operating costs. We find that, by using dynamic approach, household prefer to invest in different years and not just at the beginning of the period. By using the stochastic approach, the investment of energy costs will be higher in order to deal with uncertainties inherent in the data.