Examining the synergistic diffusion process of carbon capture and renewable energy generation technologies under market environment: A multi-agent simulation analysis

Abstract

To achieve carbon neutrality, the power industry will vigorously promote renewable energy generation and carbon capture and storage (CCS) technologies. The diffusion of these technologies will vary depending on the incentive policies and market environments. Considering the progressive development of China's electricity market reform, this study constructs a multi-agent simulation model for the long-term low-carbon transformation of power systems, simulating the effects of different market environment and policy tools on the synergistic diffusion process of CCS and renewable energy generation technologies. According to the research results, when the price constraints in the electricity market are relaxed, opting for a differentiated clearing price demonstrates greater benefits for the diffusion of CCS technology and the reduction of carbon emissions compared to using a uniform clearing price. In this situation, the spread of renewable energy generation technologies aids in lowering the average market electricity price, thereby offsetting any potential price hikes resulting from the expansion of CCS technology. Moreover, in the presence of electricity price constraints, policy subsidies are necessary to incentivize the diffusion of CCS technology, with the suitable period for such incentives falling before 2040.