A Mean-Field Game Approach to Equilibrium Pricing in Solar Renewable Energy Certificate Markets

Understand

Solar Renewable Energy Certificate (SREC) markets are a market-based system that incentivizes solar energy generation.

• A regulatory body imposes a lower bound on the amount of energy each regulated firm must generate via solar means, providing them with a tradeable certificate for each MWh generated.
• Firms seek to navigate the market optimally by modulating their SREC generation and trading rates.
• As such, the SREC market can be viewed as a stochastic game, where agents interact through the SREC price.