Spot Electricity Market Design Considering Carbon Emissions for a Power System with a High Penetration of Renewable Energy Generation

Journal Publication ResearchOnline@JCU
Shang, Jingyi;Wang, Kun;Lai, Xinyi;Yang, Jiajia;Jiang, Xin;Gao, Jinfeng;Singh, S.N.
Abstract

Governments around the world have been developing intermittent renewable energy generation (IREG) technologies such as wind power and solar power aiming at securing energy supply and carbon emission reduction. However, the uncertainty of intermittent renewable energy-based generation brings challenges to a power system with a high penetration of IREG. Given this background, through joint energy and frequency regulation service (FRS) clearing, a new two-sided spot electricity market mechanism is proposed in this paper, which can quantitatively determine the FRS demand of the system to cope with the high IREG penetration rate. The proposed mechanism also incorporates the consumer side to manage uncertainties of both IREG outputs and flexible loads, via providing economic incentives to market participants. Besides, in the proposed market mechanism, carbon emission is included in the market clearing function, which can not only contribute to the decarbonization of electricity resources, but also promote the coupling relationship between electricity and carbon emission markets. Subsequently, the correlation analysis between electricity and carbon prices confirms the positive effect of the proposed mechanism on deepening the electricity-carbon synergy. Finally, case studies demonstrate the feasibility and effectiveness of the proposed market mechanism.

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IEEE Transactions on Network Science and Engineering

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2327-4697

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11

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Institute of Electrical and Electronics Engineers

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DOI

10.1109/TNSE.2023.3337096