2025/01/16 by Wenqian Jiang, Jiang, Wenqian, Line Roald +1 · 1 citation
Energy · Engineering · #Electric Power System Optimization #Energy Efficiency and Management #FOS: Electrical engineering #Smart Grid Energy Management #Systems and Control (eess.SY) #electronic engineering #information engineering
paper · pdf · doi:10.48550/arxiv.2501.09853
openalex publication_date 2025/01/16 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
To enhance decarbonization efforts in electric power systems, we propose a novel electricity market clearing model that internalizes the allocation of emissions from generations to loads and allows for consideration of consumer-side carbon costs. Specifically, consumers can not only bid for power but also assign a cost to the carbon emissions incurred by their electricity use. These carbon costs provide consumers, ranging from carbon-agnostic to carbon-sensitive, with a tool to actively manage their roles in carbon emission mitigation. By incorporating carbon allocation and consumer-side carbon costs, the market clearing is influenced not solely by production and demand dynamics but also by the allocation of carbon emission responsibilities. To demonstrate the effect of our proposed model, we conduct a case study comparing market clearing outcomes across various percentages of carbon-sensitive consumers with differing carbon costs.