System Dynamics Modeling of the Massachusetts SREC Market

Abstract

Abstract:As states across the country struggle to increase local development of renewable energy, policymakers are turning to innovative program designs to meet their renewable electricity targets. Massachusetts recently adopted a unique, auction-based price support mechanism for the solar portion of its renewable portfolio standard. During the program development process, the Massachusetts Department of Energy Resources (DOER) used system dynamics to simulate potential solar renewable energy certificate market conditions under the proposed regulations. The modeling exercise resulted in several program design changes that will lead to a more stable certificate market. System dynamics can be a useful tool for developing and improving sustainability programs.

Untangling the socio-political knots: A systems view on Indonesia's inclusive energy transitions

“…These interconnectedness are also important in discussing inclusive transitions, as defining what is just, and for whom, requires a wide understanding of the scope [43]. Therefore, a ST approach is relevant to answer the research question as it acknowledges interdependencies, interrelationships, gaining insights on underlying behaviour, and aiming for long-term best interests [31,44,45]. This study utilises more particularly visual tools from System dynamics (SD), a modelling methodology derived from ST, such as causal loop diagrams (CLD) and systems archetypes, which help draw out and visualise the systemic patterns in place to operationalise ST findings and elicit highlevel policy interventions [31].…”

Evaluation of Energy Potential from Coffee Pulp in a Hydrothermal Power Market through System Dynamics: The Case of Colombia

“…SD has also been applied to systems of a renewable nature [71] to understand the behavior of power generation systems [72] and the effect of policies and mechanisms in this sector [73,74]. For example, Zapata et al [75] relied on SD to evaluate the effect of renewable energy sources on the Colombian electricity market.…”

Solar Renewable Energy Certificate (SREC) Markets: Status and Trends

“…The opt-in term for future projects may be adjusted annually based on market conditions, but any adjustment will have no impact on projects that have already been qualified. If the SREC market is oversupplied, the DOER will decrease the opt-in period for new systems to temper market growth (Flynn et al 2010). For every 10% of the compliance obligation met by deposits into the auction, the opt-in term will be reduced by one year.…”