With the decision made to act upon climate change, the remaining question is: "How?". Economic theory suggests that the most efficient method is by means of market-based policies. These policies are often designed based on Integrated Assessment Models like DICE, which is the subject of this thesis. Integrating uncertainty into this model has been the aim of the thesis. The stochastic version of DICE, EICE, showed to be sensitive to the distribution of climate uncertainty, but results were less explicit then expected. Overall, the conclusion is that both modest and more strict mitigation policies can be justified based on EICE.

Increased use of the distribution grid due to the uptake of distributed energy resources and the expected penetrations of Electrical Vehicles (EVs) could lead to congestion problems in the distribution grid. Congestion refers to issues related to the overheating of components or voltage issues in the distribution network. Avoiding these issues is crucial to maintain a stable, economical and reliable electricity grid. By using the flexibility of aggregated EVs large investments in grid reinforcement can be avoided. However, a holistic approach is necessary to manage the procurement of flexibility services for all stakeholders involved. One approach is the Universal Smart Energy Framework (USEF), a framework that integrates the existing electricity market with a market for flexibility services from the aggregator to the Distribution System Operator (DSO). This master thesis presents a study on the flexibility market as described by USEF from the perspective of a commercial aggregator of EVs. USEF presents a framework in which flexibility potentially provides financial opportunities for aggregators of EVs. However, it is not clear what the financial impact on the charging costs of an aggregator of EVs is and in what way an aggregator has to adapt its charging logic when trading with DSOs. Therefore, the aim of this thesis is to answer the following question: how can an aggregator of EVs offer flexibility services to a USEF compliant market at distribution level? This report presents an in-depth analysis on USEF, determines the impact of network constraints from USEF on the charging costs of an aggregator of EVs and improves the charging strategy under USEF constraints.