An unexploited benefit of renewable energy is the predictability of operating costs over the long term. A renewables operator knows today how much it will cost to produce energy decades in the...
when comparing the "No RPS" to the "Full RPS" case. This is primarily because our market model automatically installs capacity as needed to meet demand, thereby eliminating the possibility of unpleasant price surges (if only the real world worked in a similar manner). It bears mentioning that market clearing energy prices do not reflect the capital investment cost required to bring new resources to market. We expect total investment costs under California's proposed renewable energy capacity expansion to be substantially higher than the "business-as-usual" capacity expansion plan embodied in the "No RPS" case.
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