International Energy Trade
In the model we separate between energy goods that are traded on a world market and those that are traded between pairs of model countries. For coal, oil and biofuels we have world markets, whereas for biomass, natural gas and electricity we model trade between pairs of model countries.
Electricity and natural gas can be traded between countries through international transmission lines and cables (electricity) or pipelines (natural gas). The gas producing countries generally have a production node and a consumption node. The gas has to be transported from the production node to the consumption node before it can be traded. The only exemption is for Norway where the gas can be transported directly from Norway's production node to the consumption nodes of the receiving countries. For electricity all trade takes place between the consumption nodes. On the map below the production nodes are marked in black and the consumption nodes in gray (for details on Russian gas click on Russia in the menu on the left). Countries that are not connected cannot trade directly.
Biomass can be traded between pairs of countries. For coal, biofuels and oil we have world markets and do not model trade between the model countries explicitly. We assume that each model country has a central node and that international trade takes place between these.