The low carbon power dispatch strategy for generation traders considering the risks of carbon trading

Chinese government devotes to carry out the national carbon trading market in the coming years. In the carbon trading market, the generation traders are faced with the risks of uncertainty in the carbon trading price. Considering the risks of carbon trading, the problem of low carbon scheduling for generation traders is worth studying. Drawing on the theory of risk management in financial field, this paper uses CVaR as a risk measurement index, and proposes a low carbon scheduling optimization model for generation traders considering the risks of carbon trading. The model is used to calculate the carbon trading portfolio optimization of generation traders. At the same time, the impacts of generation traders risk preference confidence, changes in carbon trading prices and carbon emission limits on the carbon trading risks of generation traders are analyzed. The effectiveness of the proposed model is verified by examples. The generation traders can optimize the power generation and balance profits and risks. Therefore, the model presented in this paper can be of certain reference value and guidance to the decision making of generation traders.