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Expanding the economic benefits of waste gasification through carbon and green certificate markets:Optimal bidding strategies in multiple markets

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  • Jia, Dongqing
  • Li, Xingmei
  • Tan, Qinliang
  • Li, Bingkang
  • Lv, Xiaoyan

Abstract

The waste gasification has emerged as a promising method for waste treatment and energy generation, but high operational costs hinder its development. Currently, waste gasification plants are aggregated with renewable energy sources into virtual power plant to participate in the combined electricity-hydrogen market, thereby increasing its profitability. Even so, the carbon reduction potential of this technology is often overlooked, limiting the development of waste resource treatment. Based on this, this paper introduces a tradable green certificate market and a carbon emissions trading market to convert carbon reduction potential into economic benefits. Further, inter-market coupling and price transmission relationships are described for electricity, hydrogen, carbon and green certificate markets under dynamic prices. A bi-level bidding strategy model for the joint electricity-hydrogen-carbon-green certificate market is constructed. Finally, the model was tested on a modified IEEE 9-bus grid and a 7-node hydrogen network, showing that the introduction of the carbon emissions trading and green certificate market improves the total return of virtual power plant aggregated waste gasification plants by about 798 ‰. The scheme proposed improves the economic efficiency of waste resource treatment and enhances synergies between various energy markets, while facilitating stable grid integration of renewable energy sources, with a broad development perspective.

Suggested Citation

  • Jia, Dongqing & Li, Xingmei & Tan, Qinliang & Li, Bingkang & Lv, Xiaoyan, 2025. "Expanding the economic benefits of waste gasification through carbon and green certificate markets:Optimal bidding strategies in multiple markets," Energy, Elsevier, vol. 319(C).
    • Handle: RePEc:eee:energy:v:319:y:2025:i:c:s0360544225005602
    DOI: 10.1016/j.energy.2025.134918
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