Renewable portfolio standards, feed-in-tariffs, and market premia are widely used policy instruments to promote investments in renewable energy sources. Regulators continuously evaluate these instruments along the main electricity policy objectives of affordability, reliability, and sustainability. We develop a quantitative approach to assess these policies and their robustness to exogenous changes along these dimensions using a long-term dynamic capacity investment model. We compare their robustness in the light of uncertain renewable feed-in and ambiguous future regulation. We implement the robustness analysis employing different risk measures and find that renewable portfolio standards deliver most robust results, while feed-in-tariffs achieve target renewable buildup rates at least cost.
Areas of Focus: Energy Markets
, Electric Power
Well-functioning markets are essential for providing access to reliable, affordable energy. EPIC research is uncovering the policies, prices and information needed to help energy markets work efficiently.
, Energy Efficiency
As the electric power system faces new pressures and opportunities, EPIC research is working to identify the mix of policies needed to accelerate the global transition to clean, reliable, affordable...
, Renewable Energy
Improving energy efficiency is lauded as a promising way reduce emissions and lower energy costs. Yet, a robust body of research demonstrates that not all efficiency investments deliver. EPIC faculty...
Lower technology costs and supportive public policies are driving an increase in renewable energy in markets around the world. EPIC research is assessing the costs, benefits, and efficiency of policies...