Abstract for: Assessing the new electricity-market reform in GB with the support of SD
The British government plans to implement an Electricity Market Reform (GB EMR) in the near future. Its objective is to replace the existing nuclear and coal plants by low-carbon ones and deliver reliable and affordable power. Though the GB EMR has proposed several policy instruments for meeting its objectives, there is not known simulation exercise that assesses the extent of the consequence of this profound and important initiative. This paper shows a system dynamics model that supports the analysis of the long-term effects of the various policy instruments that have been proposed in GB EMR, focusing on environmental quality, security of supply and economic sustainability. The paper concludes that for achieving the GB EMR objectives, it is required the promotion of low carbon electricity generation through the simultaneous implementation of various direct and indirect incentives such as Feed in Tariff and a capacity mechanism.