A Research of Trading Liberty in Power Market Considering Carbon-Marginal Cost and Unit Carbon Emission Allowance

in this study, a model containing multiple types of power plants based on realistic data is constructed, to solve for minimum power purchase cost with the total carbon emission not exceeding the regional carbon emission cap. Carbon costs are merged into power generation marginal costs to represent true marginal costs under carbon emission regulation after carbon allowance and green certificate trading rules are set. The new concept of unit carbon allowance is explored extensively to promote the advancement of carbon reduction technology of coal-fired power plants by unit carbon emission responsibility. The key points are to build a logical integration of carbon trades and conventional marginal costs, as well as meaningfully express the trading liberty in carbon emission and reserve market for optimized resources allocation. Experiments of three scenarios with different trading mechanisms are conducted, to contrast the effects of regulations. Through establishing the relationship between the trading liberty and results, this research aims to present new ideas for achieving minimum power purchase cost while limiting the regional carbon emission and improve the consumption of renewable power via market administration.