Mountainous areas and decentralized energy planning: Insights from Greece

Mountainous areas have particular characteristics, whose influence on energy planning is explored in this paper, through a suitably tailored methodology applied to the case of Greece. The core element of the methodology is a linear optimization model with a "total cost" objective function, which includes financial, as well as external costs and benefits. Altitude proves to have decisive influence on energy optimization results, because it affects energy demand. The improvement of local energy systems provides greater-socioeconomic benefits in mountainous settlements, due to the high shares of renewables and energy efficiency interventions in the optimal solutions. Energy poverty can be alleviated by redesigning local energy systems and the structure of the energy market. However, spatial and aesthetic restrictions, presented often in mountainous settlements, may affect the operational costs of energy systems, which is a crucial parameter for confronting energy poverty. Furthermore, the study indicates that it could be better to electrify remote areas, far from electricity grids, by decentralized systems than by grid expansion. The results of this study and the assumptions made about the way in which energy market should function, could be utilized for reconsidering energy policy measures, aiming at supporting sensitive societies to improve their development perspectives. (C) 2016 Elsevier Ltd. All rights reserved.