Inter-Provincial Multi-Channel Centralized Bidding Transaction Considering Carbon Emission Reduction

Inter-provincial Multi-channel centralized bidding transaction (IMCBT) helps mitigate the inverse distribution of source and load in China. In current models, market entities are primarily characterized by their declared electricity amount and price, with social welfare maximization as the model objective. However, the distinct carbon emission properties associated with different generation types of market entities are overlooked, which undermines efforts to reduce carbon emission and accommodate renewable energy in the transaction process. To address this problem, a method for calculating carbon emission in IMCBT is structured, and a penalty term for carbon emission is introduced into the objective function to encourage carbon emission reduction. Numerical results indicate that with an appropriate selection of the penalty factor for carbon emission, a balance between social welfare maximization and carbon emission reduction could be achieved, meanwhile promoting the accommodation of renewable energy.