Equilibrium analysis for prosumer’s participation in joint electricity and carbon markets

Abstract

The current electricity system has a large number of carbon emissions. As an environmentally friendly and low-carbon electricity generation source, distributed energy sources gradually get more and more attention. However, the participation of a large number of distributed energy sources brings uncertainty to the operation of the electricity market. Prosumers could effectively avoid the instability caused by the participation of distributed energy sources in the electricity market. At present, the strategy of the prosumer participating in the electricity market has been thoroughly studied. However, equilibrium analysis for prosumer’s participation in joint electricity and carbon markets still needs to be studied in depth. Therefore, we propose a method for the prosumer to participate in the joint electricity and carbon markets, which could effectively reduce carbon emissions. First, we build a carbon market model. Then, the equilibrium model of the prosumer’s participation in joint electricity and carbon markets is constructed. The equilibrium model can realize the equilibrium between the coordination of prosumers and joint markets. Finally, we adopt an iterative algorithm to solve the equilibrium model. Prosumers and joint electricity and carbon markets transmit marginal information to each other. According to the marginal information. The equilibrium between Prosumer and joint markets is solved through iteration by self-optimization and self-decision. Case studies based on the IEEE 30-bus system verify the effectiveness of the model and method proposed in this paper.

Keywords

• Carbon market
• Distributed energy resource
• Market equilibrium
• Prosumer