Renewable energy support policy evaluation: The role of long-term uncertainty in market modelling

Ian J. Scott, Audun Botterud, Pedro M.S. Carvalho and Carlos A. Santos Silva

Applied Energy, 2020, vol. 278, issue C, No S0306261920311430

Abstract: Policy makers are tasked with selecting, designing, and implementing policies to support the transition to a sustainable power system. As part of the task, they often turn to models to quantify and compare the options available to them. In this work, we investigate the importance of the approach to representing long-term uncertainty in the modelling used to evaluate different decarbonisation or renewable support policies. We compare six different policies options; a cap on CO2 emissions (as with a cap and trade scheme), a CO2 price, a renewable capacity target, a green certificates scheme, a renewable generation subsidy, and a renewable capital grant.

Keywords: Renewable energy policy; Uncertainty; Electricity market modelling; Generation expansion planning; Quantities vs. prices (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (12)

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DOI: 10.1016/j.apenergy.2020.115643

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