Analysis of Electricity Market Equilibrium Considering Carbon Emission Mechanism

The carbon emission mechanism will increase the cost of power generation of thermal power units, thereby affecting the equilibrium of the electricity market. First, this paper describes the basic mechanism of the carbon market. Then, for the electricity market equilibrium problem under the carbon emission mechanism, a bi-lever equilibrium model of the electricity market considering the carbon cost and the total amount of carbon quota is established. The upper model is the optimal bidding model for power producers, and the lower model is the electricity market clearing model. The bi-lever model is transformed into a single-layer model through optimality conditions. Finally, based on the IEEE 6-node system, the equilibrium of the electricity market under a variety of market environments such as perfectly competitive market and single oligopoly market considering carbon emission mechanisms is solved, and compared with the electricity market equilibrium without carbon emission mechanisms. The impact of carbon emission mechanism on the equilibrium state of the electricity market is analyzed.