Bilevel Carbon-Aware Dispatch and Market Coordination in Power Networks Under Distributional Uncertainty

The accelerating transition toward carbon neutrality necessitates the synergistic integration of power and hydrogen systems to mitigate renewable intermittency; however, coordinating regulatory policies with the operational flexibility of these coupled systems remains a critical challenge under deep uncertainty. Motivated by this gap, this study develops a bilevel carbon price-coupled optimization framework for integrated power–hydrogen systems, aiming to coordinate environmental policy design with operational scheduling under deep uncertainty. The upper-level model represents the decision-making of a market regulator that determines the optimal carbon price and emission allowances to maximize overall social welfare, while the lower-level model captures the coordinated operation of electricity and hydrogen subsystems that minimize total dispatch cost, including renewable utilization, electrolyzer conversion, and fuel-cell recovery.To address stochastic variations in renewable generation and load demand, a Distributionally Robust Optimization (DRO) formulation is introduced using Wasserstein ambiguity sets, ensuring decision feasibility against worst-case probability distributions. The bilevel structure is efficiently solved via a Benders–Column-and-Constraint Generation (CCG) algorithm, which decomposes policy and operation layers into tractable subproblems with provable convergence. Case studies on a 33-bus integrated power–hydrogen network demonstrate that the proposed framework effectively balances economic efficiency and carbon reduction. Results show that the optimal carbon price of approximately 45 $/tCO2 achieves a 27% emission reduction with only a 9% cost increase, revealing a near-optimal social welfare equilibrium. Hydrogen subsystems operate flexibly, with electrolyzer utilization increasing by 30% and storage cycling deepening by 15%, enabling enhanced renewable absorption. Sensitivity analyses confirm that the DRO layer reduces operational risk by 4% compared with stochastic optimization, validating robustness against distributional shifts. The study provides a rigorous and computationally efficient paradigm for policy-coordinated decarbonization, highlighting the synergistic role of carbon pricing and cross-energy scheduling in the next generation of resilient low-carbon energy systems.

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Publication Details

Journal
Energies
Published
2026-02-24
DOI
https://doi.org/10.3390/en19051132
Primary Topic
Integrated Energy Systems Optimization
Type
article
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article

Bilevel Carbon-Aware Dispatch and Market Coordination in Power Networks Under Distributional Uncertainty

Guoyang Wang, Liye Xie, Peng Wang, Miao Pan
Energies
Integrated Energy Systems Optimization
article

Bilevel Carbon-Aware Dispatch and Market Coordination in Power Networks Under Distributional Uncertainty

Guoyang Wang, Liye Xie, Peng Wang, Miao Pan
article en

Abstract

The accelerating transition toward carbon neutrality necessitates the synergistic integration of power and hydrogen systems to mitigate renewable intermittency; however, coordinating regulatory policies with the operational flexibility of these coupled systems remains a critical challenge under deep uncertainty. Motivated by this gap, this study develops a bilevel carbon price-coupled optimization framework for integrated power–hydrogen systems, aiming to coordinate environmental policy design with operational scheduling under deep uncertainty. The upper-level model represents the decision-making of a market regulator that determines the optimal carbon price and emission allowances to maximize overall social welfare, while the lower-level model captures the coordinated operation of electricity and hydrogen subsystems that minimize total dispatch cost, including renewable utilization, electrolyzer conversion, and fuel-cell recovery.To address stochastic variations in renewable generation and load demand, a Distributionally Robust Optimization (DRO) formulation is introduced using Wasserstein ambiguity sets, ensuring decision feasibility against worst-case probability distributions. The bilevel structure is efficiently solved via a Benders–Column-and-Constraint Generation (CCG) algorithm, which decomposes policy and operation layers into tractable subproblems with provable convergence. Case studies on a 33-bus integrated power–hydrogen network demonstrate that the proposed framework effectively balances economic efficiency and carbon reduction. Results show that the optimal carbon price of approximately 45 $/tCO2 achieves a 27% emission reduction with only a 9% cost increase, revealing a near-optimal social welfare equilibrium. Hydrogen subsystems operate flexibly, with electrolyzer utilization increasing by 30% and storage cycling deepening by 15%, enabling enhanced renewable absorption. Sensitivity analyses confirm that the DRO layer reduces operational risk by 4% compared with stochastic optimization, validating robustness against distributional shifts. The study provides a rigorous and computationally efficient paradigm for policy-coordinated decarbonization, highlighting the synergistic role of carbon pricing and cross-energy scheduling in the next generation of resilient low-carbon energy systems.

EnergiesVol. 19(5)
North China Electric Power University (CN)
Openalex Percentile: Top 46%
Integrated Energy Systems Optimization
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