Impacts of Energy and Environmental Policies
We have developed customized modeling tools to provide market participants with detailed insights into the impacts of national and regional government energy policies, including greenhouse gas (GHG) emissions programs.
Our market simulation tools include:
- California Cap-and-Trade Model: This model internally analyzes the cross-sector tradeoffs and the interplay of complementary policies with the impact on GHG prices and the electric power sector. This model is used to help market participants understand energy market expectations based on potential trajectories of California’s policies.
- Nodal Carbon Dispatch Simulations: These have been designed to allow appropriate unit commitment and dispatch simulation in interstate markets where some states have carbon emissions policies and other states do not. This unique modeling feature allows us to address potential issues of emissions reshuffling and multiple carbon regimes.
- CO2Scenario Impact Model (CO2 SIM): This model evaluates market-driven investment and retirement decisions over time by simulating capacity, energy, clean energy, and carbon markets. The model determines prices for each market, given the current resource mix, near-term planned additions and retirements; demand for electricity, capacity, and clean energy; as well as fuel, variable, and investment costs. SIM can be used to determine the economic and environmental impact of clean energy and low carbon policies and market designs and to evaluate the impact of shifting value streams on generation and transmission assets.