An approach to real time electricity marginal cost pricing calculation with impact factors and carbon emissions

Abstract

This approach aims to develop an algorithm for dealing with real time electricity price. The impact factors and cost of carbon dioxide emissions are contained in the calculation of electricity price. The derived theory is an initiative of green energy pricing mechanism in a power system. Standard IEEE-9 and 30-bus test systems and network branch data are put into practice to verify the model concepts. MATPOWER's dedicated open source Matlab-based program is the main substance for simulating AC optimal power flow. Marginal cost pricing and cost of marginal carbon emissions comprise the basic elements of electricity price. The uniform and location electricity price are calculated in the test systems separately. The results show this model is a very fast speed and accurate solution solvers of electricity price. Moreover, real time energy price with cost of carbon emissions makes users pay a little bit more for their electricity consumption. It is not only to have an attitude of seeking energy-saving, but even to achieve a basis structure of green energy pricing strategy.