Commercial model of the electricity-carbon market incorporating flexible resources

Under the “Dual Carbon” goals, the coupling of power and carbon markets has become a critical driver for energy decarbonization. Flexible resources, including energy storage, distributed energy, and demand response, play vital roles in enhancing energy system efficiency, optimizing market resource allocation, and achieving carbon reduction targets. This paper systematically reviews the roles and operational models of flexible resources in the Electricity-Carbon market, exploring the contributions of various stakeholders such as thermal power, renewable energy, and demand-side resources in both markets. By constructing a joint optimization model for the Electricity-Carbon market, the study evaluates the economic and environmental benefits of flexible resource participation, such as improved renewable energy utilization, lower system costs, and reduced carbon emissions. The findings demonstrate that flexible resources significantly enhance grid operation efficiency, reduce total power costs, and facilitate deeper renewable energy penetration and a low-carbon power structure. Furthermore, the paper provides policy recommendations to support future synergistic development of the Electricity-Carbon market, offering theoretical insights and practical guidance for achieving sustainable energy transitions.