Market Equilibrium Analysis of Coupled Multi-Agent Decision-Making in the Electricity and Carbon Markets

Simulation models for electricity markets (EM) that consider the carbon market (CM) often overlook the variation in carbon emission intensity (CEI) of generation companies (Gencos) and their decision-making behaviour in the CM. This results in inflexible and unrealistic decision-making by Gencos. In this paper, a secondary CM model is established on the basis of an EM simulation model, incorporating dynamic CEI. The joint decision-making behaviour of Gencos in both the EM and CM is analysed, and the IEEE 39-bus system is used as a case study to validate the model’s effectiveness. The model established in this paper considers dynamic CEI and decision-making in the CM, which reflects the flexibility of Gencos’ decision-making. The results show that the introduction of the CM reduces the system’s carbon emissions by 79 tons, while increasing fuel costs by $\mathbf{2 8, 3 0 0}$ CNY and electricity purchasing costs by 106,946 CNY.