Research on tradable green certificate benchmark price and technical conversion coefficient: Bargaining-based cooperative trading

Abstract

Reasonable design of the tradable green certificate (TGC) system quasi-parameters (benchmark price and technical conversion coefficient) can effectively induce the mutually beneficial cooperation of the TGC market players. However, almost no literature quantitatively estimates the quasi-parameters of TGC system. This paper uses the cooperative game theory to construct the TGC bilateral trade model between renewable energy power generators and distribution power suppliers, and then quantitatively calculates the quasi-parameters of TGC system for social welfare maximization. The results show that: (1) The constructed TGC bilateral trading model guides the mutually beneficial cooperation among market players effectively by realizing benefit expansion and redistribution; (2) The TGC benchmark price and the conversion coefficients can be quantitatively calculated based on the Nash bargaining model. Taking China for example, the benchmark price is 333 yuan/MWh, and the technical conversion coefficients of hydropower, wind power and photovoltaic power are 1, 1.2, and 1.5, respectively.