The global power sector faces the critical challenge of balancing rising electricity demand with stringent carbon reduction targets. Taiwan’s unique geopolitical and energy import constraints provide an ideal context for exploring advanced grid technologies integrated with carbon-trading mechanisms. This study combines the Adaptive Time-Varying Gravitational Search Algorithm (ATGA) with Static Synchronous Series Compensator (SSSC) technology to optimize power flow and enable carbon transactions between the power generation and transmission sectors. Through a feedback-driven mechanism, power producers acquire carbon credits from transmission operators, maximizing profitability while meeting emission targets. Managed by the transmission companies, the SSSC enhances grid stability, reduces transmission losses, and generates valuable carbon credits. Simulations based on Taiwan’s power market demonstrate that this integrated approach achieves a 50% reduction in emissions and increases profitability for power producers by up to 20%. This model has potential applications in other regions, and future work could explore its scalability and adaptability in different economic and regulatory contexts.
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