Real-Time Market Mechanism With Jointly Considering Electricity and Carbon Markets

This paper develops a real-time market mechanism by jointly considering the electricity and carbon markets to simultaneously achieve economic optimality, regulate frequency, and further reduce carbon emissions for power systems with high penetration of renewables. The target of the proposed mechanism is to solve an optimization problem that aims to minimize the total generation and penalty costs of electricity and carbon market entities subjecting to the constraints of both markets. To integrate frequency regulation into the proposed mechanism, the optimization problem is reformulated into an equivalent counterpart. The feedback-based optimization and partial primal-dual gradient dynamics method are used to develop the real-time market mechanism that includes bidding behaviors of market entities and clearing procedures of electricity and carbon markets. Finally, case studies on a modified IEEE 57-bus system demonstrate the effectiveness of the proposed mechanism.