Influence of the Emissions Trading Scheme on generation scheduling

Kockar, Ivana; Conejo, Antonio J.; McDonald, James R.

doi:10.1016/j.ijepes.2009.07.001

Cited by 60 publications

(37 citation statements)

References 5 publications

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“…When studying the emission reduction related decision making problems, similar modelling methods are adopted. In [6], optimization model was used to investigate the effects of emission constraints and emission trading scheme on the generation scheduling outcome. In [7], Cournot equilibrium model was used to analyze the potential profit impacts and possible compensation of potential emission trading scheme on generation companies.…”

Section: Existing Research Methodsmentioning

confidence: 99%

Simulation analysis on policy interaction effects between emission trading and renewable energy subsidy

Huang

Xue

Song

2013

J. Mod. Power Syst. Clean Energy

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Greenhouse gas emission regulation and renewable energy promotion policies have been implemented in many countries. Yet these two kinds of regulation policies have complex interactions between each other, and can either enhance or reduce the overall emission reduction efficiency. If not well tuned, these regulation policies may deviate from their original intention and lead to unnecessary social cost. Hence, the policy effectiveness, cost effectiveness, and dynamic efficiency of different policy mixtures between emission trading and renewable energy subsidy are studied based on a novel dynamic simulation platform of power economy and power system. Simulation results show that these two kinds of regulation policy can coexist, but a good coordination between the emission trading and the renewable energy subsidy can achieve better emission reduction outcomes.

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Section: Existing Research Methodsmentioning

confidence: 99%

Simulation analysis on policy interaction effects between emission trading and renewable energy subsidy

Huang

Xue

Song

2013

J. Mod. Power Syst. Clean Energy

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“…The greater part of the published works concerning the relationship between energy production and pollutant emissions are devoted to studying the impact of CO 2 emissions being traded in the power industry, especially through medium-term models ( [17,30,32]) but also some that are short-term ( [21]). None of this papers consider the SO 2 and NO x emissions, which is the goal of the NERP, although these rules substantially modifies the shape of the optimal bid strategy of an electricity producer.…”

Section: Literature Reviewmentioning

confidence: 99%

Stochastic optimal generation bid to electricity markets with emissions risk constraints

Heredia

Cifuentes-Rubiano

Corchero

2018

Journal of Environmental Management

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There are many factors that influence the day-ahead market bidding strategies of a generation company (GenCo) within the framework of the current energy market. Environmental policy issues are giving rise to emission limitation that are becoming more and more important for fossil-fueled power plants, and these must be considered in their management. This work investigates the influence of the emissions reduction plan and the incorporation of the medium-term derivative commitments in the optimal generation bidding strategy for the day-ahead electricity market. Two different technologies have been considered: the high-emission technology of thermal coal units and the low-emission technology of combined cycle gas turbine units. The Iberian Electricity Market (MIBEL) and the Spanish National Emissions Reduction Plan (NERP) defines the environmental framework for dealing with the day-ahead market bidding strategies. To address emission limitations, we have extended some of the standard risk management methodologies developed for financial markets, such as Value-at-Risk (VaR) and Conditional Value-at-Risk (CVaR), thus leading to the new concept of Conditional Emission at Risk (CEaR). This study offers electricity generation utilities a mathematical model for determining the unit's optimal generation bid to the wholesale electricity market such that it maximizes the long-term profits of the utility while allowing it to abide by the Iberian Electricity Market rules as well as the environmental restrictions set by the Spanish National Emissions Reduction Plan. We analyze the economic implications for a GenCo that includes the environmental restrictions of this National Plan as well as the NERP's effects on the expected profits and the optimal generation bid.

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“…This replacement is particularly important for CO 2 prices under e15/tCO 2 . Contrary to all these mid-term studies, the work in [10] addresses the shortterm generation scheduling of a set of thermal generation units through the minimization of the generation plus start-up/shutdown costs of a MILP deterministic model that includes in the objective function the emission trading incomes and costs.…”

Section: B Literature Reviewmentioning

confidence: 99%

“…The model for the CO 2 emission follows the assumption in [10] and [18] that the nonlinear emission function is proportional to the quadratic generation cost function of each unit. …”

Section: H Objective Functionmentioning

confidence: 99%

Optimal electricity market bidding strategies considering emission allowances

Corchero

Heredia

Cifuentes

2012

2012 9th International Conference on the European Energy Market

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Abstract-There are many factors that influence the day-ahead market bidding strategies of a GenCo in the current energy market framework. In this work we study the influence of both the allowances and emission reduction plan and the incorporation of the derivatives medium-term commitments in the optimal generation bidding strategy to the day-ahead electricity market. Two different technologies have been considered: the coal thermal units, high-emission technology, and the combined cycle gas turbine units, low-emission technology. The operational characteristics of both kinds of units are modeled in detail. We deal with this problem in the framework of the Iberian Electricity Market and the Spanish National Emissions and Allocation Plans. The economic implications for a GenCo of including the environmental restrictions of these National Plans are analyzed.

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Influence of the Emissions Trading Scheme on generation scheduling

Cited by 60 publications

References 5 publications

Simulation analysis on policy interaction effects between emission trading and renewable energy subsidy

Simulation analysis on policy interaction effects between emission trading and renewable energy subsidy

Stochastic optimal generation bid to electricity markets with emissions risk constraints

Optimal electricity market bidding strategies considering emission allowances

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