ADDRESSING THE INHERENT LIMITATIONS OF TRADITIONAL MODELLING FRAMEWORK FOR SUSTAINABLE ENERGY DEVELOPMENT IN A DEVELOPING ECONOMY

Abstract

This article addresses the literatures in respect of the inherent limitations of traditional modelling techniques forsustainable energy planning in a Developing Economy (DE). DE are undergoing socio-economic changes in theirenergy settings - socio-economic policies such liberalisation, financial sourcing and climate change implication ofenergy projects. This article describes a critical review of the inherent dynamics of Sustainable Energy Development(SED) and reveals the limitations of traditional planning tools such as optimisation, econometric and generalsimulation models. It argues that traditional approaches are inadequate for SED in the DE due to its inherentweakness in guiding future policy decisions. Optimisation based models may be suited for well-defined solutions,however, the macro-energy scene at a decision support level in most DE do not lend itself to simplified modellingtechnique that are rooted on past algorithms. Econometric models has seen applications across many economies,sadly, they fail to consider the technological nature of energy supply (production) and demand (consumption) in arapidly changing DE. Further, they fail to demonstrate the path taken and erroneously assumed conditions ofequilibrium for energy planning and policy formulation. This article bridge the gaps in literatures by showcasing theinherent weaknesses of traditional planning approaches and the urgent need to seek an alternative paradigm shift forsustainable energy planning and policy formulation in the DE.

Keywords: Energy, Developing Economy, Frameworks, Optimization, Modelling.