The impact of decarbonization policies on electric system operating characteristics

In this seminar, Professor John Deutch introduces a simple model of an electricity market with competing nuclear, renewable, and natural gas generation to explore the operating characteristics that result from the imposition of five alternative policies intended to reduce CO2 emissions and/or increase renewable generation. He uses a static equilibrium analysis of supply and demand to compare the operating characteristics of an electricity system from the imposition of each new policy measure; the range of CO2 emission reductions proves to be surprisingly large. Given the values of the parameters assumed, Deutch finds it is unlikely that replacing a renewable portfolio standard by a carbon-free portfolio standard would be sufficient to encourage deployment of new nuclear electricity generation.

Speaker Bio:

John Deutch ’61, PhD ‘66, Institute Professor emeritus, has been chair of the Secretary of Energy Advisory Board for the past four years; a former undersecretary of the US Department of Energy; and professor of chemistry, dean of science, and provost at MIT.