Carbon Trading Analysis and Impacts on Economy in Market-to-Market Coordination With Higher PV Penetration

This work has dealt with a market-to-market coordination (M2M) with higher photovoltaic (PV) penetrations in a market. Recent developments of renewable penetrations in the electricity grid have caused excess power generation during the peak hours of availability and low demand, i.e., during mid-day. Financial analysis, i.e., generation costs, locational marginal prices, and financial transmission rights along with carbon trading in M2M using different interconnection topologies have been analyzed. Carbon trading agreements allow for the trade of credits to emit CO
₂
or tax the CO
₂
emissions comprising international agreements intended to cut down the total greenhouse gases. The obtained test results show that the direct interconnections of identified PV units to identified load buses have provided a better economy and have saved higher carbon emissions for the M2M interconnections.