Market equilibrium analysis considering frequency modulation trading and coupled Electricity-Carbon Emission Trading-Tradable Green Certificates market

To achieve the goal of "dual carbon", China has been deepening its power market reform. "Carbon Emission Trading (CET)-Tradable Green Certificates (TGC) Mutual Recognition" made the operation rules more complicated. Under the joint transaction environment of the Frequency Modulation (FM) market and the coupled Electricity-CET-TGC market, the game between wind and thermal generation companies (GENCOs) will affect the equilibrium results. Based on the Gounod model, this paper establishes a game equilibrium model for wind and thermal GENCOs under the environment of FM trading market and coupled Electricity-CET-TGC market, and analyzes the impacts of the mutual recognition, FM trading, and the quota coefficients on markets and power GENCOs, and optimizes the sharing of FM fees. The results show that "CET-TGC mutual recognition" reduces electricity prices and carbon emission, and has almost no effect on FM trading, but when the tightening of quota coefficients is close, the CET and TGC prices show opposite trends to the overall ones.FM trading increases all the market prices and carbon emission. The improved FM cost sharing approach better matches the system FM costs incurred by each participant and increases social welfare. Tighter quota coefficients increase the competitiveness of wind power and reduce the competitiveness of thermal power.