Quoting and Clearing Strategy of Power Suppliers Within the Coupled Electricity, Carbon, and Green Certificate Market

This paper addresses the bi-level optimization problem involving the quoting and clearing of power suppliers within the coupled electricity, carbon trading (CT), and tradable green certificates (TGC) markets First, a bi-level optimization decision model of multi-entities under the coupling of electricity, CT and TGC market is formulated, in which the constraints of DC power flow, the piecewise linear bidding method and the inverse-demand linear relationship between volume and price of TGC are considered. It aims to assist power suppliers in optimizing their bidding strategies and enhancing their competitiveness. Second, the Karush-Kuhn-Tucker conditions are used to reformulate the lower-level problem, converting the bi-level model of power generators into a single-level model. The large M method is then applied for linearization. Finally, simulation results validate the proposed method’s effectiveness.