Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue
Abstract With the increasing penetration rate of renewable energy in the power system, it becomes increasingly important to coordinate adequacy, flexibility, and environmental protection. The development of the power market provides diverse signals for power investors and plays an increasingly signi...
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| Main Authors: | , , , , , , |
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| Format: | Article |
| Language: | English |
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Wiley
2024-12-01
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| Series: | IET Renewable Power Generation |
| Subjects: | |
| Online Access: | https://doi.org/10.1049/rpg2.13084 |
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| author | Chaojie Li Youquan Jiang Jiang Dai Ruyue Guo Ying Zhang Shijin Tian Siran Peng |
| author_facet | Chaojie Li Youquan Jiang Jiang Dai Ruyue Guo Ying Zhang Shijin Tian Siran Peng |
| author_sort | Chaojie Li |
| collection | DOAJ |
| description | Abstract With the increasing penetration rate of renewable energy in the power system, it becomes increasingly important to coordinate adequacy, flexibility, and environmental protection. The development of the power market provides diverse signals for power investors and plays an increasingly significant role in the decarbonization of the power system. However, due to the interdependent operations of various power markets, measuring the multifaceted value of power generation within traditional market mechanisms poses considerable challenges. Herein, a bi‐level optimization model is proposed to integrate the capacity remuneration mechanism (CRM), energy market (EM), and carbon emission trading (CET). The adequacy, flexibility, and environmental revenue expectations of different generation resources through synergistic transactions are derived using Lagrange multipliers. Furthermore, the bilevel optimization model is converted to its equivalent single‐level scheme based on the Karush–Kuhn–Tucker optimality conditions. Finally, several case studies are conducted to demonstrate the effectiveness of the proposed model, along with comparisons and sensitivity analyses to study the principles behind synergistic transactions and the impact of some key parameters. |
| format | Article |
| id | doaj-art-93e9e4a3657b4a9db6de5a62da698911 |
| institution | Kabale University |
| issn | 1752-1416 1752-1424 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Wiley |
| record_format | Article |
| series | IET Renewable Power Generation |
| spelling | doaj-art-93e9e4a3657b4a9db6de5a62da6989112025-01-30T12:15:53ZengWileyIET Renewable Power Generation1752-14161752-14242024-12-0118163944395410.1049/rpg2.13084Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenueChaojie Li0Youquan Jiang1Jiang Dai2Ruyue Guo3Ying Zhang4Shijin Tian5Siran Peng6Electric Power Research Institute Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaElectric Power Dispatching Control Center Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaElectric Power Dispatching Control Center Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaElectric Power Research Institute Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaElectric Power Research Institute Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaElectric Power Dispatching Control Center Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaElectric Power Research Institute Guizhou Power Grid Co., Ltd. Guiyang Guizhou ChinaAbstract With the increasing penetration rate of renewable energy in the power system, it becomes increasingly important to coordinate adequacy, flexibility, and environmental protection. The development of the power market provides diverse signals for power investors and plays an increasingly significant role in the decarbonization of the power system. However, due to the interdependent operations of various power markets, measuring the multifaceted value of power generation within traditional market mechanisms poses considerable challenges. Herein, a bi‐level optimization model is proposed to integrate the capacity remuneration mechanism (CRM), energy market (EM), and carbon emission trading (CET). The adequacy, flexibility, and environmental revenue expectations of different generation resources through synergistic transactions are derived using Lagrange multipliers. Furthermore, the bilevel optimization model is converted to its equivalent single‐level scheme based on the Karush–Kuhn–Tucker optimality conditions. Finally, several case studies are conducted to demonstrate the effectiveness of the proposed model, along with comparisons and sensitivity analyses to study the principles behind synergistic transactions and the impact of some key parameters.https://doi.org/10.1049/rpg2.13084power system operation and planningpower system reliability |
| spellingShingle | Chaojie Li Youquan Jiang Jiang Dai Ruyue Guo Ying Zhang Shijin Tian Siran Peng Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue IET Renewable Power Generation power system operation and planning power system reliability |
| title | Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue |
| title_full | Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue |
| title_fullStr | Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue |
| title_full_unstemmed | Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue |
| title_short | Capacity market in the decarbonization era: Adequacy, flexibility, and environmental revenue |
| title_sort | capacity market in the decarbonization era adequacy flexibility and environmental revenue |
| topic | power system operation and planning power system reliability |
| url | https://doi.org/10.1049/rpg2.13084 |
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