Abstract
To analyze the effect of carbon emission quota allocation on the locational marginal price (LMP) of day-ahead electricity markets, this paper proposes a two-stage algorithm. For the first stage of the algorithm, a multi-objective optimization model is established to simultaneously minimize the total costs and carbon emission costs of power systems. Hence, an evenly distributed Pareto optimal solution can be solved effectively by means of the normalized normal constraint method. For the second stage, a tracing model is built with the goal of minimizing the total costs of power systems and satisfying the constraints generated based on the Pareto optimal solution obtained from the first stage. Furthermore, the influence of carbon emission quota allocation on the LMP of electricity markets is analyzed, and different schemes to allocate carbon emission quotas are evaluated on a real 1560-bus and 52-unit system.
Highlights
With the rapid development of the modern industrial system and the overconsumption of resources and energy, huge amounts of greenhouse gases have been emitted into the atmosphere over the last 20 years, which has brought about environmental pollution and damage to the ecosystem [1,2,3].numerous industrialized countries have promoted international actions to reduce carbon emissions and achieve sustainable development [4,5]
This paper proposes a two-stage algorithm for calculating the locational marginal price (LMP) in the day-ahead market within the carbon emission trading (CET) mechanism to analyze the impact of carbon emission allowance on the day-ahead electricity market
11carbon illustrates the comparison of carbon of increase conventional units while between two the impact emission quota allocation, with emissions a maximum of 27.65%, it drops different carbon emission quota allocation methods
Summary
Numerous industrialized countries have promoted international actions to reduce carbon emissions and achieve sustainable development [4,5]. In the European Union, many countries have committed to reducing carbon emissions by 20% by 2025, and 45% by 2050, in order to limit global temperature rise [6]. As a major contributor of carbon emissions, China set the goal of reducing carbon emissions by 40%–50% by 2020 compared to 2005 [7,8]. Within this context, in addition to vigorously developing the renewable energy industries, many countries utilize financial incentives such as carbon emission trading (CET) to encourage emission reduction.
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