Computing a Strategic Decarbonization Pathway: A Chance-Constrained Equilibrium Problem

Jip Kim, Robert Mieth, Yury Dvorkin

Research output: Contribution to journalArticlepeer-review

Abstract

US transmission systems and wholesale electricity markets, albeit federally regulated, often span across multiple state jurisdictions. In this environment, state regulators can strategically exploit this techno-economic coupling to advance their clean energy policy goals at the expense of neighboring jurisdictions. This paper investigates strategic regulatory competition to understand its effect on achieving Renewable Portfolio Standards (RPS). We formulate a chance-constrained equilibrium problem with equilibrium constraints (CC-EPEC), which considers multiple state regulators, acting in coordination with in-state power companies, to implement RPS goals in the least-cost manner. To solve this CC-EPEC, we customize a Progressive Hedging (PH) algorithm. The case study uses the CC-EPEC and PH algorithm to analyze the effects of state regulatory competition in the ISO New England system.

Original languageEnglish (US)
Article number9261976
Pages (from-to)1910-1921
Number of pages12
JournalIEEE Transactions on Power Systems
Volume36
Issue number3
DOIs
StatePublished - May 2021

Keywords

  • Decarbonization
  • equilibrium problem with equilibrium constraints
  • progressive hedging
  • regulatory competition
  • renewable portfolio standard

ASJC Scopus subject areas

  • Energy Engineering and Power Technology
  • Electrical and Electronic Engineering

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