Haiku Documentation: Rff’s Electricity Market Model

RFF’s Haiku model is a simulation of regional electricity markets and interregional electricity trade in the continental United States. The model accounts for capacity planning, investment, and retirement over a multi-year horizon and for system operation over seasons of the year and times of day. Electricity demand is represented by price-sensitive demand schedules by customer class, and changes in demand can be implemented through investments in energy efficiency, time of day pricing, and other regulatory changes. The model identifies least-cost compliance strategies for compliance with various types of regulations of sulfur dioxide, nitrogen oxide, carbon dioxide, and mercury emisisons. Market structure is represented by cost-of-service (average cost) pricing and market-based (marginal cost) pricing in various regions. This documentation provides an overview of model capabilities and examples of how it has been used in many previous reports and scholarly studies. The documentation provides additional detail where necessary to explain economic or regulatory concepts or modeling strategies.