Research on Cooperation Mechanism between Carbon and Electricity Market for Distributed Energy Resources

The greenhouse gas emissions from power grids has been accounting for more than 40% of emissions in the energy sector of China, leading to the widely deployment of distributed energy resources (DERs) to mitigate these emissions. However, integrating DERs into electricity and carbon markets faces challenges due to the separation of their energy and environmental attributes, leading to inefficiencies and potential double-counting. To address this, we propose a cooperation mechanism that unifies these attributes by tracking energy and carbon flows across physical and trading layers. In parallel, a cross-market price transmission mechanism must be institutionalized to synchronize pricing signals across the carbon market and electricity market, thereby internalizing environmental attributes in energy pricing mechanisms.. This way, DERs' integration can be integrated into the broader energy system, supporting low-carbon transformation.