Abstract for: Decarbonizing electricity generation: Final Targets vs. Imposing a Path
In this work, we analyze the impact of regulatory interventions, represented by intermediate targets towards a long-term final target, on a market in transition. In a stylized electricity market, we study how the frequency of these interventions, operationalized through intermediate targets, influence the performance in a market which aims to increase its green share of generation from 0% to 50% in 40 time periods. Using a System Dynamics model, we optimize the regulatory decisions each period, with respect to two market performance criteria: cost for customers and blackout risk. We compare and discuss results based on three different scenarios; a free market, a compromise with limited interventions and a reregulation case.