Competitive Equilibrium Analysis of Power Generation Transaction Subjects Considering Tradable Green Certificates

Abstract

The implementation of renewable portfolio standards (RPS) and tradable green certificate schemes will exert significant influences on the market equilibrium outcomes and generation firms’ strategic behaviors. To quantitatively investigate these influences, firstly, considering the difference in power generation cost and the uncertainty of renewable energy power generation, the equilibrium model for various trade subjects in the electricity market is established. Secondly, the nondominated sorting genetic algorithm II is adopted for solving the equilibrium model to find well-distributed Pareto-optimal solutions. Finally, the grey relational projection method is used to calculate the priority membership of each decision-making scheme so as to determine the optimal compromise solution. The simulation focuses on analyzing the impact of RPS on the equilibrium results and market behavior of power generators and introduces the Lerner index to quantify the market power of generators. The results show that: (1) An increase in the quota ratio can effectively increase power generation in renewable energy generators. The game between thermal power generators and renewable energy generators raises the prices of both markets at the same time. (2) Improving the forecasting accuracy is conducive to alleviating the market power behavior of various power generators, thereby ensuring the healthy operation of the power market.