Bidding Strategies for Generation Companies and Large Consumers in Carbon Emission Market Considering Electricity Spot Market Clearing Outcomes

The carbon emission trading market (referred to as carbon market) is an important platform to support the goals of carbon peaking and carbon neutrality in China. In this context, considering the existing electricity spot market mechanism, it is of great significance to study the bidding strategies of generation companies and large consumers in the carbon market. First, the overall framework for generation companies and large consumers to participate in the carbon and electricity markets is proposed. The carbon market clearing is discretized to implement collaborative clearing of the carbon and electricity markets. Secondly, according to the proposed carbon-electricity market framework, a centralized carbon market clearing model is established. Then, the bidding decision-making process of carbon market participants is addressed, and optimal bidding strategies for generation companies and large consumers participating in the carbon market considering the electricity spot market clearing outcomes are presented. Finally, the feasibility and effectiveness of the proposed method are demonstrated through a numerical example based on the IEEE 24-bus power system.