Computing a Strategic Decarbonization Pathway: A Chance-Constrained Equilibrium Problem

US transmission systems and wholesale electricity markets, albeit federally regulated, often span across multiple state jurisdictions. In this environment, regulators can strategically exploit techno-economic coupling to advance their clean energy policy goals at the expense of neighboring This paper investigates strategic regulatory competition understand its effect on achieving Renewable Portfolio Standards (RPS). We formulate a chance-constrained equilibrium problem with constraints (CC-EPEC), which considers regulators, acting in coordination in-state power companies, implement RPS least-cost manner. To solve CC-EPEC, we customize Progressive Hedging (PH) algorithm. The case study uses CC-EPEC PH algorithm analyze effects ISO New England system.