A novel load-side settlement mechanism based on carbon emission flow in electricity spot market

Abstract

In the electricity spot market (ESM), thermal power plants (TPP) are quoted based on fuel costs and carbon costs, which impose carbon costs from the generation side to the load-side. The cost of load-side participation in the ESM will increase further. In addition, the traditional ESM centralized bidding model is based on the marginal clearing price, without considering the line transmission constraints, which may affect the security of the power system. To solve this challenge, firstly, an ESM centralized bidding clearing model including the generation side and the load-side is established based on the transaction mechanism of centralized bidding in the ESM. In this model, the marginal clearing prices of two possible bidding scenarios in the ESM are considered. Secondly, the marginal clearing price of the ESM is designed based on the security constraint of the power flow, which can avoid power transmission exceeding its capacity. Finally, a carbon emission cost settlement mechanism is proposed based on the carbon emission flow (CEF) method, which can reduce the carbon emission cost paid by the load-side. The effectiveness of the method is verified by simulations. Compared with a traditional load-side settlement model, the settlement cost on the load-side is reduced by 30.45 %.

Keywords

• Electricity spot market
• Centralized bidding
• Security constraint
• Carbon emission flow