It was initially developed through a detailed description of sectoral energy demand, electricity capacity planning and fossil fuel exploration and production in the different world regions.
Along its development it incorporated theoretical and practical expertise in many fields such as mathematics, economics, engineering, energy analysis, international trade and technical change.
Since then, the model has been developed extensively through several projects, some partly financed by FP5, FP6 and FP7, and in collaboration between the EDDEN-CNRS, the consulting company Enerdata and the European Joint Research Centre IPTS.
With a history spanning twenty years, it is one of the few energy models worldwide that benefits from a continuous development process and expertise over such an extended time period.
POLES is a partial equilibrium model with a yearly recursive simulation process with a combination of price-induced behavioural equations and a cost- and performance-based system for a large number of energy or energy-related technologies.
Price-induced diffusion tools such as feed-in tariffs can be included as drivers for projecting the future development of new energy technologies.
The six Kyoto Protocol GHGs are covered (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride, hydrofluorocarbons and perfluorocarbons).
POLES does not directly provide the macro-economic impact of mitigation solutions as envisaged by the Stern Review, however it allows a detailed assessment of the costs associated with the development of low- or zero-carbon technologies.
The model does not cover all greenhouse gases emissions, notably those related to agriculture (in part), land use, land-use change and forestry.