Carbon-oriented pricing scheme in digitalized power transmission networks utilizing carbon-driven demand response program under risk investigation

Abstract

The main challenge for future sustainable societies is dealing with the high portion of released CO2 throughout smart power transmission systems; consequently, a comprehensive carbon-based framework is required that directly calculates stakeholders' contribution to the network's CO2 emissions. In this case, this paper proposes a mechanism driven by the carbon-tracing (CTR) process to tackle carbon emissions in smart transmission networks. Using the CTR mechanism enables the digitalized independent system operator (ISO) to allocate the total emissions among participants using the real-time data received from smart grid infrastructures. Furthermore, a carbon-based nodal pricing mechanism for gas and power systems is proposed, which reflects the received data from CTR analysis. To reduce carbon emissions in the smart power transmission network, a carbon-based demand response (DR) procedure is suggested, under which consumers will receive higher incentives for reducing their consumption, especially in high-carbon-intensity buses. In addition, in this paper, for effective management of carbon pollution, the uncertainties of wind and loads and leading risks to carbon and operation costs have been modeled. Hence, the conditional value-at-risk (CVaR) method is utilized for modeling the risks related to uncertainties. It can be seen that applying the proposed CVaR-based risk assessment framework and carbon-incentive-based DR programs led to a decrease in daily total carbon and operation costs by 0.66% and 1.02%, respectively.