Coordination of tradable carbon emission permits market and renewable electricity certificates market in China

Wang, Ge; Zhang, Qi; Su, Bin; Shen, Bo; Li, Yan; Li, Zhengjun

doi:10.1016/j.eneco.2020.105038

Cited by 68 publications

(17 citation statements)

References 33 publications

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“…However, due to the lack of mandatory measures in China, the willingness of organizations to purchase green certificates is insufficient (Song et al 2020 ). China has proposed to implement mandatory green certificate trading in 2021 (Wang et al 2021a , b , c ), but this policy has not been implemented. In the long view, mandatory nationwide green certificate trading is an inevitable trend (Yu et al 2022 ).…”

Section: Introductionmentioning

confidence: 99%

Simulation study on the development decision of new energy manufacturers under the weight of consumption responsibility

Dong

2023

Environ Sci Pollut Res

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In 2019, China proposed the weight of consumption responsibility (WCR) policy for renewable energy. This study first analyzes the interaction between the electricity market and the green certificate market and establishes a two-market equilibrium model with multiple subjects. Secondly, a system dynamics model of the development decision of the new energy manufacturers (NEMs) under the interaction of the two markets is established. Finally, taking Henan province as an example, the development trend of NEMs is simulated, and sensitivity analysis is conducted to explore the key influencing factors for the development of NEMs. The results show that the electricity market and the green certificate market interact with each other mainly through the price of electricity and the price of green certificates, thus evolving the trading behavior of trading subjects. By 2035, for every 0.25% increase in non-hydropower WCR in Henan province, the annual added new energy installation will be around 1200 MW. In the current scenario, the policy of certificate multiplier will be detrimental to the overall development of NEMs, and a conservative investment strategy and accelerated technology improvements are more beneficial to NEMs. Carbon emission peaking and carbon neutrality policies can also accelerate the growth of new energy installations.

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Section: Introductionmentioning

confidence: 99%

Simulation study on the development decision of new energy manufacturers under the weight of consumption responsibility

Dong

2023

Environ Sci Pollut Res

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“…Some researches study the impact of relevant energy policies on carbon emission trading. A multi-region multimarket equilibrium model considering Renewable Electricity Certificates market and carbon market is developed in (Wang et al, 2021). Feng et al (2021) simulate the combined effects of tradable green certificates and carbon market on the electricity market.…”

Section: Introductionmentioning

confidence: 99%

Cooperative trading strategy of carbon emitting power generation units participating in carbon and electricity markets

Yang

Liu

et al. 2022

Front. Energy Res.

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Energy-saving and emission reduction will become the focus of the energy industry in the future. The coordination of the carbon and electricity markets can help achieve the goals of carbon reduction. With the establishment of the carbon market, carbon emitting power generation units (CEPGU) need to consider the trading strategy and comprehensive benefits in the electricity and carbon markets. To further explore the mechanism and interaction process of electricity price and carbon price, the day-ahead electricity market model and carbon market trading model are developed in this study. Based on the deviation between the bid-winning power output in the electricity market and the quota plan in the carbon market, the generation cost model and the carbon quota trading decision model of the units are constructed. Finally, a case study is provided to simulate the coordinated trading process of the carbon and electricity markets. The transaction time scales of the two markets are matched. The results prove that the generation plan of the units can coordinate with the carbon quota level and provide a trading strategy for the power generation enterprises.

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“…Research related to multi-market participation of VPP exists but with limited broadness and depth. For research on entities' participation in all electricity, REC and CER markets, [10] proposes a multi-region multi-market equilibrium model considering both REC and CER trading. It establishes effective joint coordination on the RPS requirement, carbon emission (CE) quotas and social welfare.…”

Section: Introductionmentioning

confidence: 99%

A Multiple Market Trading Mechanism for Electricity, Renewable Energy Certificate and Carbon Emission Right of Virtual Power Plants

Huang¹,

Ye²,

Wu³

et al. 2022

Preprint

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A multiple market trading mechanism for the VPP to participate in electricity, renewable energy certificate (REC) and carbon emission right (CER) markets is proposed. With the introduction of the inventory mechanism of REC and CER, the profit of the VPP increases and better trading decisions with multiple markets are made under the requirements of renewable portfolio standard (RPS) and carbon emission (CE) quota requirements. According to the Karush-Kuhn-Tucker (KKT) conditions of the proposed model, properties of the multiple market trading mechanism are discussed. Results from case studies verify the effectiveness of the proposed model.Index Terms-Virtual power plant (VPP), Renewable energy certificate (REC), Carbon emission right (CER), Renewable portfolio standard (RPS), Multiple markets, Inventory mechanism

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Coordination of tradable carbon emission permits market and renewable electricity certificates market in China

Cited by 68 publications

References 33 publications

Simulation study on the development decision of new energy manufacturers under the weight of consumption responsibility

Simulation study on the development decision of new energy manufacturers under the weight of consumption responsibility

Cooperative trading strategy of carbon emitting power generation units participating in carbon and electricity markets

A Multiple Market Trading Mechanism for Electricity, Renewable Energy Certificate and Carbon Emission Right of Virtual Power Plants

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