Game Analysis of Electricity Market Considering Carbon Emission and Green Certificate Trading

To achieve the low-carbon transition of power systems, carbon emission trading (CET) and green certificate trading (GCT) mechanisms are being widely used. In order to investigate the effects of these trading mechanisms on electricity market, a Cournot equilibrium model of the day-ahead (DA) electricity market with joint participation of renewable and conventional power generators in CET and GCT is established. In this model, apart from the DA electricity market, conventional power generators participate in CET and GCT, renewable generators participate in GCT. A deviation penalty mechanism is introduced to tackle renewable generators' bid deviations in the DA electricity market caused by uncertainties in their actual power outputs. The nonlinear complementarity approach is employed to solve the equilibrium model. Finally, numerical examples are presented to validate the reasonableness and effectiveness of the proposed model. It is shown that the introduction of CET and GCT can help improve the competitiveness of renewable generators in electricity markets, and reduce carbon emissions of power system.