Research on the Synergistic Mechanism Design of Electricity-CET-TGC Markets and Transaction Strategies for Multiple Entities

Zhenjiang Shi, Mengmeng Zhang, Lei An, Yan Lu, Daoshun Zha, Lili Liu () and Tiantian Feng
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Zhenjiang Shi: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100053, China
Mengmeng Zhang: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100053, China
Lei An: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100053, China
Yan Lu: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100053, China
Daoshun Zha: School of Economics and Management, China University of Geosciences Beijing, Beijing 100083, China
Lili Liu: School of Economics and Management, China University of Geosciences Beijing, Beijing 100083, China
Tiantian Feng: School of Economics and Management, China University of Geosciences Beijing, Beijing 100083, China

Sustainability, 2025, vol. 17, issue 15, 1-23

Abstract: In the context of the global response to climate change and the active promotion of energy transformation, a number of low-carbon policies coupled with the development of synergies to help power system transformation is an important initiative. However, the insufficient articulation of the green power market, tradable green certificate (TGC) market, and carbon emission trading (CET) mechanism, and the ambiguous policy boundaries affect the trading decisions made by its market participants. Therefore, this paper systematically analyses the composition of the main players in the electricity-CET-TGC markets and their relationship with each other, and designs the synergistic mechanism of the electricity-CET-TGC markets, based on which, it constructs the optimal profit model of the thermal power plant operators, renewable energy manufacturers, power grid enterprises, power users and load aggregators under the electricity-CET-TGC markets synergy, and analyses the behavioural decision-making of the main players in the electricity-CET-TGC markets as well as the electric power system to optimise the trading strategy of each player. The results of the study show that: (1) The synergistic mechanism of electricity-CET-TGC markets can increase the proportion of green power grid-connected in the new type of power system. (2) In the selection of different environmental rights and benefits products, the direct participation of green power in the market-oriented trading is the main way, followed by applying for conversion of green power into China certified emission reduction (CCER). (3) The development of independent energy storage technology can produce greater economic and environmental benefits. This study provides policy support to promote the synergistic development of the electricity-CET-TGC markets and assist the low-carbon transformation of the power industry.

Keywords: electricity-CET-TGC markets; synergistic mechanism design; multi-entity trading strategies; independent energy storage (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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