A Market Clearing Method Considering Dynamic Carbon Price and Carbon Pass-through Factors

To reduce greenhouse gas emissions, carbon market has received extensive attention as a market-based trading instrument. Meanwhile, the rapid development of electricity market has been witnessed worldwide. Given numerous fossil-fuel-fired units as co-participants produce massive carbon emissions, carbon market and electricity market are deeply coupled. Under such circumstances, this paper proposes a market clearing model considering dynamic carbon price and carbon pass-through factors. Firstly, the basic relevant concept is introduced and the newly clearing model is put forward. Then, the solution method of the model is proposed, which utilize the Lagrange Multiplier Method. Furthermore, a modified IEEE 30-bus system is used to validate the effect of the model. The case study illustrates the effectiveness of proposed method in carbon emission reduction.