The Role of Social Discount Rate in Energy Modelling

Energy systems modelling aims to introduce a sustainable energy system design with an improved understanding of present and future interactions between demand-supply, environment, and economy. Treating energy systems started in the 1950s and have led to various approaches and models. Amongst common metrics, the discount rate impacts time horizon costs, benefits, demand and supply. This chapter presents an objective overview of energy systems approaches based on their historical evolutions. In order to point out social benefits and costs, the use of social discount rate for the Tunisian power system is argued.