IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i10p2510-d358839.html
   My bibliography  Save this article

A Two-Stage Algorithm of Locational Marginal Price Calculation Subject to Carbon Emission Allowance

Author

Listed:
  • Mingxing Wu

    (Guangdong Power Exchange Center Co., Guangzhou 510080, China)

  • Zhilin Lu

    (School of Electric Power Engineering, South China University of Technology, Guangzhou 510640, China)

  • Qing Chen

    (Guangdong Power Exchange Center Co., Guangzhou 510080, China)

  • Tao Zhu

    (Guangdong Power Exchange Center Co., Guangzhou 510080, China)

  • En Lu

    (Guangdong Power Exchange Center Co., Guangzhou 510080, China)

  • Wentian Lu

    (School of Electric Power Engineering, South China University of Technology, Guangzhou 510640, China)

  • Mingbo Liu

    (School of Electric Power Engineering, South China University of Technology, Guangzhou 510640, China)

Abstract

To analyze the effect of carbon emission quota allocation on the locational marginal price (LMP) of day-ahead electricity markets, this paper proposes a two-stage algorithm. For the first stage of the algorithm, a multi-objective optimization model is established to simultaneously minimize the total costs and carbon emission costs of power systems. Hence, an evenly distributed Pareto optimal solution can be solved effectively by means of the normalized normal constraint method. For the second stage, a tracing model is built with the goal of minimizing the total costs of power systems and satisfying the constraints generated based on the Pareto optimal solution obtained from the first stage. Furthermore, the influence of carbon emission quota allocation on the LMP of electricity markets is analyzed, and different schemes to allocate carbon emission quotas are evaluated on a real 1560-bus and 52-unit system.

Suggested Citation

  • Mingxing Wu & Zhilin Lu & Qing Chen & Tao Zhu & En Lu & Wentian Lu & Mingbo Liu, 2020. "A Two-Stage Algorithm of Locational Marginal Price Calculation Subject to Carbon Emission Allowance," Energies, MDPI, vol. 13(10), pages 1-20, May.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:10:p:2510-:d:358839
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/10/2510/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/10/2510/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Yu, Shiwei & Wei, Yi-Ming & Guo, Haixiang & Ding, Liping, 2014. "Carbon emission coefficient measurement of the coal-to-power energy chain in China," Applied Energy, Elsevier, vol. 114(C), pages 290-300.
    2. Zhu, Zhi-Shuang & Liao, Hua & Cao, Huai-Shu & Wang, Lu & Wei, Yi-Ming & Yan, Jinyue, 2014. "The differences of carbon intensity reduction rate across 89 countries in recent three decades," Applied Energy, Elsevier, vol. 113(C), pages 808-815.
    3. Zhang, Zengkai & Zhu, Kunfu, 2017. "Border carbon adjustments for exports of the United States and the European Union: Taking border-crossing frequency into account," Applied Energy, Elsevier, vol. 201(C), pages 188-199.
    4. Lin, Boqiang & Jia, Zhijie, 2020. "Is emission trading scheme an opportunity for renewable energy in China? A perspective of ETS revenue redistributions," Applied Energy, Elsevier, vol. 263(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ning Ren & Xiufan Zhang & Decheng Fan, 2022. "Influencing Factors and Realization Path of Power Decarbonization—Based on Panel Data Analysis of 30 Provinces in China from 2011 to 2019," IJERPH, MDPI, vol. 19(23), pages 1-24, November.
    2. Wei Li & Tengfei Zhu & Xiaoyu Li & Jianzhang Dong & Jun Liu, 2022. "Recommending Advanced Deep Learning Models for Efficient Insect Pest Detection," Agriculture, MDPI, vol. 12(7), pages 1-17, July.
    3. Sergio Cantillo-Luna & Ricardo Moreno-Chuquen & Harold R. Chamorro & Jose Miguel Riquelme-Dominguez & Francisco Gonzalez-Longatt, 2022. "Locational Marginal Price Forecasting Using SVR-Based Multi-Output Regression in Electricity Markets," Energies, MDPI, vol. 15(1), pages 1-14, January.
    4. Yixin Huang & Xinyi Liu & Zhi Zhang & Li Yang & Zhenzhi Lin & Yangqing Dan & Ke Sun & Zhou Lan & Keping Zhu, 2020. "Multi-Stage Transmission Network Planning Considering Transmission Congestion in the Power Market," Energies, MDPI, vol. 13(18), pages 1-22, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhi-Fu Mi & Yi-Ming Wei & Chen-Qi He & Hua-Nan Li & Xiao-Chen Yuan & Hua Liao, 2017. "Regional efforts to mitigate climate change in China: a multi-criteria assessment approach," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 22(1), pages 45-66, January.
    2. Eising, Jan Willem & van Onna, Tom & Alkemade, Floortje, 2014. "Towards smart grids: Identifying the risks that arise from the integration of energy and transport supply chains," Applied Energy, Elsevier, vol. 123(C), pages 448-455.
    3. Yang, Ranran & Long, Ruyin & Yue, Ting & Shi, Haihong, 2014. "Calculation of embodied energy in Sino-USA trade: 1997–2011," Energy Policy, Elsevier, vol. 72(C), pages 110-119.
    4. Shu-Hong Wang & Ma-Lin Song & Tao Yu, 2019. "Hidden Carbon Emissions, Industrial Clusters, and Structure Optimization in China," Computational Economics, Springer;Society for Computational Economics, vol. 54(4), pages 1319-1342, December.
    5. Xiao, Hao & Sun, Ke-Juan & Bi, Hui-Min & Xue, Jin-Jun, 2019. "Changes in carbon intensity globally and in countries: Attribution and decomposition analysis," Applied Energy, Elsevier, vol. 235(C), pages 1492-1504.
    6. Zhao, Xueting & Wesley Burnett, J. & Lacombe, Donald J., 2015. "Province-level convergence of China’s carbon dioxide emissions," Applied Energy, Elsevier, vol. 150(C), pages 286-295.
    7. Li, Jin & Wang, Rui & Li, Haoran & Nie, Yaoyu & Song, Xinke & Li, Mingyu & Shi, Mai & Zheng, Xinzhu & Cai, Wenjia & Wang, Can, 2021. "Unit-level cost-benefit analysis for coal power plants retrofitted with biomass co-firing at a national level by combined GIS and life cycle assessment," Applied Energy, Elsevier, vol. 285(C).
    8. Qianyu Zhao & Boyu Xie & Mengyao Han, 2023. "Unpacking the Sub-Regional Spatial Network of Land-Use Carbon Emissions: The Case of Sichuan Province in China," Land, MDPI, vol. 12(10), pages 1-22, October.
    9. Guangfang Luo & Jianjun Zhang & Yongheng Rao & Xiaolei Zhu & Yiqiang Guo, 2017. "Coal Supply Chains: A Whole-Process-Based Measurement of Carbon Emissions in a Mining City of China," Energies, MDPI, vol. 10(11), pages 1-18, November.
    10. Wang, Ke & Zhang, Jianjun & Cai, Bofeng & Yu, Shengmin, 2019. "Emission factors of fugitive methane from underground coal mines in China: Estimation and uncertainty," Applied Energy, Elsevier, vol. 250(C), pages 273-282.
    11. Shaikh, Mohammad A. & Kucukvar, Murat & Onat, Nuri Cihat & Kirkil, Gokhan, 2017. "A framework for water and carbon footprint analysis of national electricity production scenarios," Energy, Elsevier, vol. 139(C), pages 406-421.
    12. Yuan, Baolong & Ren, Shenggang & Chen, Xiaohong, 2015. "The effects of urbanization, consumption ratio and consumption structure on residential indirect CO2 emissions in China: A regional comparative analysis," Applied Energy, Elsevier, vol. 140(C), pages 94-106.
    13. Chen, Jiandong & Cheng, Shulei & Song, Malin & Wu, Yinyin, 2016. "A carbon emissions reduction index: Integrating the volume and allocation of regional emissions," Applied Energy, Elsevier, vol. 184(C), pages 1154-1164.
    14. Yang, Qing & Zhang, Lei & Zou, Shaohui & Zhang, Jinsuo, 2020. "Intertemporal optimization of the coal production capacity in China in terms of uncertain demand, economy, environment, and energy security," Energy Policy, Elsevier, vol. 139(C).
    15. Yu Sang Chang & Dosoung Choi & Hann Earl Kim, 2017. "Dynamic Trends of Carbon Intensities among 127 Countries," Sustainability, MDPI, vol. 9(12), pages 1-21, December.
    16. Gong, Chengzhu & Yu, Shiwei & Zhu, Kejun & Hailu, Atakelty, 2016. "Evaluating the influence of increasing block tariffs in residential gas sector using agent-based computational economics," Energy Policy, Elsevier, vol. 92(C), pages 334-347.
    17. Chen, Jiandong & Gao, Ming & Mangla, Sachin Kumar & Song, Malin & Wen, Jie, 2020. "Effects of technological changes on China's carbon emissions," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    18. Hanak, Dawid P. & Kolios, Athanasios J. & Manovic, Vasilije, 2016. "Comparison of probabilistic performance of calcium looping and chemical solvent scrubbing retrofits for CO2 capture from coal-fired power plant," Applied Energy, Elsevier, vol. 172(C), pages 323-336.
    19. Yu Hao & Shang Gao & Yunxia Guo & Zhiqiang Gai & Haitao Wu, 2021. "Measuring the nexus between economic development and environmental quality based on environmental Kuznets curve: a comparative study between China and Germany for the period of 2000–2017," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(11), pages 16848-16873, November.
    20. Hasdi Aimon & Anggi Putri Kurniadi & Sri Ulfa Sentosa & Nurhayati Abd Rahman, 2023. "Production, Consumption, Export and Carbon Emission for Coal Commodities: Cases of Indonesia and Australia," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 484-492, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:13:y:2020:i:10:p:2510-:d:358839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.