Benefit Analysis of GenCo Participating in the Electricity-Carbon-Green Certificate Market under the TGC-CCER Mutual Conversion Mechanism

With the increasing demands for a low-carbon power system, countries are considering the use of environmental policies, such as carbon markets and green certificate markets, in coordination with electricity markets to reduce carbon emissions. However, the Tradable Green Certificate (TGC) and China Certified Emission Reduction (CCER) for renewable energy power may lead to double incentives, which could undermine the recognition of the unique environmental value of electricity. Therefore, a fixed TGC-CCER mutual conversion mechanism is proposed in this paper, and subsequently a bilevel optimization model involving a generation company (GenCo) participating in the electricity-carbon-green certificate market is established, which includes thermal units and photovoltaic-energy storage system (PV-ESS) integrated systems. Furthermore, the benefit of the proposed model in promoting renewable energy integration and emissions reduction in the power system is validated using a modified IEEE 39-bus system.