SMART-SREC: a stochastic model of the New Jersey solar renewable energy certificate market

摘要: Markets for solar renewable energy certificates (SRECs) are gaining in promi- nence many states, stimulating growth of the U.S. industry. However, SREC market prices have been extremely volatile, causing high risk to participants and potentially less investment power generation. Such concerns necessitate development realis- tic, flexible tractable models that capture behavior given rules govern market. We propose an original stochastic model called SMART-SREC fill this role, building on established ideas from carbon pricing liter- ature, including a feedback mechanism generation response prices. calibrate New Jersey backtest it, analyzing parameter sensitivity demonstrating its ability reproduce historical dynamics. Finally, we run simulations investigate role impact regulatory parameters, thus providing insight into crucial played by design.