New publication

A new publication  presents a stochastic reformulation of the GAMS version of the OSeMOSYS code, developed by Assistant Professor Benjamin D. Leibowicz at the University of Texas at Austin. The new code version is used in the paper to assess which investments could be more beneficial for capacity planning in the Electric Reliability Council of Texas (ERCOT) while considering the costs of policy uncertainty. The proposed approach takes into consideration several "states of the world" at the same time and determines the optimal hedging strategy for the system while ensuring robust investments. The policy alternatives considered in the model are the following: carbon cap, carbon tax and Renewable Policy Scenario (RPS), where emissions reduction strategies rely only on the deployment of renewable electricity. Results from the model show that the costs of policy uncertainty increase, moving from a carbon tax scenario to a carbon cap and finally to an RPS one.