The French biofuels mandates under cost uncertainty - an assesment based on robust optimization ; The French biofuels mandates under cost uncertainty - an assesment based on robust optimization: Cahiers de l'Economie, Série Recherche, n° 87

Abstract

This paper investigates the impact of primary energy and technology cost uncertainty on the achievement of renewable and especially biofuel policies ± mandates and norms ± in France by 2030. A robust optimization technique that allows to deal with uncertainty sets of high dimensionality is implemented in a TIMES-based long-term planning model of the French energy transport and electricity sectors. The energy system costs and potential benefits (GHG emissions abatements, diversification) of the French renewable mandates are assessed within this framework. The results of this systemic analysis highlight how setting norms and mandates allows to reduce the variability of CO2 emissions reductions and supply mix diversification when the costs of technological progress and prices are uncertain. Beyond that, we discuss the usefulness of robust optimization in complement of other techniques to integrate uncertainty in large-scale energy models.