Installation of renewable capacities to meet emission targets and demand under uncertainty

Abstract

This paper focuses on minimizing the costs related to renewable energy installations under emission constraints. We tackle the problem in three different cases. Assuming intervening once, we determine the optimal time to install and the optimal capacity expansions under uncertainty. By assuming the possibility of two or multiple interventions, we find that the optimal strategy is to intervene only once. We also prove that there are instances where capacity expansions should be delayed.