This paper lays out the key features of the new modelling tool POTEnCIA (Policy Oriented Tool for Energy and Climate Change Impact Assessment) for the EU energy system. The model follows a hybrid partial equilibrium approach combining behavioural decision with detailed techno-economic data. Special features are introduced in order to appropriately reflect the implications of an uptake of novel energy technologies and of evolving market structures, allowing for the robust assessment of ambitious policy futures for the EU energy system. The model runs in annual time steps with a typical projection timeline to 2050.