Optimal Bidding Model for Joint Electricity and Carbon Market

This paper proposed a joint E&C market, where the CEA price is integrated with electricity market considering LMP. A bi-level framework is proposed. At upper level, generation unit's optimal bidding strategy for joint E&C market is proposed to achieve its profit maximization. Then, at lower-level, the market clearing model for joint E&C market is established to settle the units arrangement. KKT theorem further combine the lower-level optimization constraints with the upper-level strategy model, to transfer the bi-level problem into a single level problem. A modified 14-bus system is tested to show that to integrate the energy market with carbon market help to increase both individual benefit and social welfare is parallelly optimized with less carbon emissions.