Towards carbon‐free electricity: A flow‐based framework for power grid carbon accounting and decarbonization

Abstract This study introduces a comprehensive framework aimed at advancing research and policy development in the realm of decarbonization within electric power systems. The framework focuses on three key aspects—carbon accounting, carbon‐aware decision making, and carbon‐electricity market design—and proposes solutions to existing problems. In contrast to traditional pool‐based emission models, this framework proposes a novel flow‐based emission model that incorporates the underlying physical power grid and power flows. Thus, the framework allows accurate carbon accounting at both the temporal and spatial scales, thereby facilitating informed decision‐making to achieve grid decarbonization goals. The framework is built on a flow‐based carbon accounting methodology and utilizes the carbon‐aware optimal power flow technique as a theoretical foundation for decarbonization decision‐making. Additionally, this study explores the potential design of carbon‐electricity markets and pricing mechanisms to incentivize decentralized decarbonization actions. Critical issues of data availability, infrastructure development, fairness and equity considerations are also discussed.