Research on Bidding Model for Coal-Fired Power Units under the Coupling of Electricity and Carbon Markets

Amid the ongoing shift towards sustainable energy, the convergence of electricity markets with carbon markets has taken center stage, significantly influencing the bidding strategies of coal-fired power plants. This study delves into the underlying principles and functioning of the integrated electricity-carbon market, examining its impact on the bidding approaches of coal-based power units. We have developed a bidding framework that factors in carbon emission costs and tested its effectiveness through comprehensive case studies. Our findings reveal that accounting for carbon emission costs significantly alters the marginal costs and competitive landscape for coal-fired power units, compelling them to implement strategies aimed at reducing carbon emission intensity. As a result, this research plays a crucial role in promoting the low-carbon transition within the power sector, providing both theoretical insights and practical guidance for enhancing the collaborative development of electricity and carbon markets.