Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Electric Sector Impacts of Renewable Policy Coordination: A Multi-Model Study of the North American Energy System

Journal Article · · Energy Policy
Policies to encourage renewable electricity generation have grown at national and subnational levels. These measures are often characterized by geographical fragmentation, as jurisdictions typically select their own renewable targets without coordinating with neighboring regions. However, the literature on renewable policies has not examined the effects of cross-border interactions and coordination, especially in a multi-model comparison to examine robustness to structural and parametric uncertainties. This paper assesses the impacts of regional and international renewable policy coordination on economic, environmental, and planning outcomes in the North American power sector. Using a multi-model comparison with eight energy-economic models, the analysis demonstrates how prospective renewable mandate trade formulations impact power sector outcomes like capacity planning decisions, costs, emissions, trade, and infrastructure investments. Model results suggest that renewable policy coordination can lower costs by up to 20% for the stringencies examined here. Fragmentation lowers gas-fired generation, but coal and nuclear are also displaced, especially when regions comply without trade. Policy costs decrease for the U.S. with higher regional and international coordination, but magnitudes vary by model. Restricting coordination leads to higher capacity investments, and absent incentives to enhance efficiency, grids do not share resources to balance variability. Transmission investments and trade are highest with international policy coordination.
Research Organization:
National Renewable Energy Laboratory (NREL), Golden, CO (United States)
Sponsoring Organization:
USDOE Office of Energy Efficiency and Renewable Energy (EERE), Strategic Priorities and Impact Analysis Office (EE-61)
DOE Contract Number:
AC36-08GO28308
OSTI ID:
1762479
Report Number(s):
NREL/JA-6A20-75521; MainId:6345; UUID:658f2caf-ad0f-ea11-9c2a-ac162d87dfe5; MainAdminID:19203
Journal Information:
Energy Policy, Journal Name: Energy Policy Vol. 145
Country of Publication:
United States
Language:
English

References (44)

The economic geography of variable renewable energy and impacts of trade formulations for renewable mandates journal May 2019
Cross-country electricity trade, renewable energy and European transmission infrastructure policy journal September 2016
The Cost of Reducing Greenhouse Gas Emissions journal November 2018
Simulating Annual Variation in Load, Wind, and Solar by Representative Hour Selection journal July 2018
Value of technology in the U.S. electric power sector: Impacts of full portfolios and technological change on the costs of meeting decarbonization goals journal February 2020
Social cost of carbon pricing of power sector CO 2 : accounting for leakage and other social implications from subnational policies journal December 2017
All RECs Are Local: How In-State Generation Requirements Adversely Affect Development of a Robust REC Market journal May 2011
Political economy constraints on carbon pricing policies: What are the implications for economic efficiency, environmental efficacy, and climate policy design? journal June 2014
The costs and value of renewable portfolio standards in meeting decarbonization goals journal June 2018
The market value of variable renewables journal July 2013
Lessons Learned from Three Decades of Experience with Cap and Trade journal January 2017
Environmental and technology policies for climate mitigation journal March 2008
US Energy-Related Greenhouse Gas Emissions in the Absence of Federal Climate Policy journal August 2018
A Critique of the Stern Review 's Mitigation Cost Analyses and Integrated Assessment journal January 2008
Renewable energy policy design and framing influence public support in the United States journal June 2017
Overview of EMF 24 Policy Scenarios journal September 2014
Why Do States Adopt Renewable Portfolio Standards?: An Empirical Investigation journal July 2010
Analyzing Scenarios for the Integration of Renewable Energy Sources in the Mexican Energy System—An Application of the Global Energy System Model (GENeSYS-MOD) journal August 2019
The impact of trading on the costs and benefits of the Acid Rain Program journal March 2018
Multiple pollutants, co-benefits, and suboptimal environmental policies journal January 2018
Our Knowledge of the World is Often Not Simple: Policymakers Should Not Duck that Fact, But Should Deal with It: Knowledge is Often Not Simple journal January 2015
The role of input assumptions and model structures in projections of variable renewable energy: A multi-model perspective of the U.S. electricity system journal October 2018
The effectiveness of different policy regimes for promoting wind power: Experiences from the states journal September 2006
The Optimal Share of Variable Renewables: How the Variability of Wind and Solar Power affects their Welfare-optimal Deployment journal January 2014
Emissions impacts of future battery storage deployment on regional power systems journal April 2020
Funding renewable energy: An analysis of renewable portfolio standards journal August 2017
Modeling for insights, not numbers: the experiences of the energy modeling forum journal January 1982
The Fall of Coal: Joint Impacts of Fuel Prices and Renewables on Generation and Emissions journal May 2018
Economic drivers of wind and solar penetration in the US journal November 2019
Solar power needs a more ambitious cost target journal April 2016
Border tax adjustments in the climate policy context: CO2 versus broad-based GHG emission targeting journal December 2012
Key findings from the core North American scenarios in the EMF34 intermodel comparison journal September 2020
Banking on banking: does “when” flexibility mask the costs of stringent climate policy? journal August 2017
Electric sector policy, technological change, and U.S. emissions reductions goals: Results from the EMF 32 model intercomparison project journal June 2018
Revenue Recycling and cost Effective ghg Abatement: an Exploratory Analysis Using a Global Multi-Sector Multi-Region cge Model journal February 2018
Do state renewable portfolio standards promote in-state renewable generationʔ journal February 2010
Wind power development in the United States journal May 2013
Perception of barriers for expansion of electricity grids in the European Union journal August 2012
Counting only the hits? The risk of underestimating the costs of stringent climate policy: A letter journal May 2010
Measuring the Environmental Benefits of Wind-Generated Electricity journal November 2013
Formalizing best practice for energy system optimization modelling journal May 2017
Cost-effectiveness of renewable electricity policies journal November 2005
Economic and technical challenges of flexible operations under large-scale variable renewable deployment journal May 2017
Intermittency and the Value of Renewable Energy journal August 2016

Similar Records

Industrial policy and the states
Journal Article · · Publius; (United States) · OSTI ID:5529095

Cooperation in Transmission Expansion Planning: Enhancing Grid Reliability and Efficiency Under a Changing Climate
Dataset · Wed Oct 23 00:00:00 EDT 2024 · OSTI ID:2474831

Exploring sustainable electricity system development pathways in South America’s MERCOSUR sub-region
Journal Article · Wed Aug 16 20:00:00 EDT 2023 · Energy Strategy Reviews · OSTI ID:2205093