Research on a cross-regional robust trading strategy based on multiple market mechanisms

Sizhe Yan, Weiqing Wang, Xiaozhu Li and Yi Zhao

Energy, 2022, vol. 261, issue PB

Abstract: With the increase in the variety of market players in cross-regional trading, the interaction of interests among multiple participants is complicated, resulting in unbalanced interests in the cross-regional trading market. Therefore, a robust trading model with joint multi-market mechanisms is proposed in this paper to cope with the intricate interactions among market players. The proposed model builds a joint trading market framework of carbon emission rights and green certificates to incentivize more market players to participate in cross-region trading. To better balance the interests among the market players, a multi-market player alliance based on the cooperative game theory is established, and a profit distribution method based on the contribution degree of system power balance is proposed. To ensure the balance of energy supply and demand for cross-regional trading, the distributed robust optimization method based on the Wasserstein metric is proposed considering the uncertainty of renewable energy generation. Finally, the feasibility of the proposed dispatching model is demonstrated with the modified IEEE 39 bus system and the Hami power grid as an example. The results show that the proposed model can obtain a conservative and economical operating scheme with fast operation time, and the joint trading mechanism can further save the operating cost.

Keywords: Renewable portfolio standard; Tradable green certificate; Carbon emissions trading mechanism; Cooperative game; Distributionally robust optimization (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:261:y:2022:i:pb:s0360544222021399

DOI: 10.1016/j.energy.2022.125253

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