IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v312y2024ics0360544224034169.html
   My bibliography  Save this article

A two-stage bi-level electricity-carbon coordinated optimization model for China's coal-fired power system considering variable renewable energy bidding

Author

Listed:
  • Feng, Sida
  • Zhang, Xingping
  • Zhang, Haonan
  • Ju, Liwei
  • Zhang, Xinyue

Abstract

With China's grid-connected large-scale variable renewable energy, coal-fired power system is progressively changing from being the main supplier of electric energy to providing flexibility services. The coal-fired power system must increase operating efficiency during this transition process by considering the technical characteristics of various coal-fired power units. Additionally, the trading strategies of coal-fired power units in the electricity-carbon market are impacted differently depending on the extent of VRE penetration. This paper innovatively considers these two factors and proposes a two-stage bi-level clearing model in electricity-carbon joint market to coordinate the synergistic development of variable renewable energy and coal-fired power. The upper level of the model aims to maximize the total profits of the coal-fired power system and variable renewable energy units, while the lower level of the model minimizes the total purchasing costs. Coal-fired power units and variable renewable energy units compete to sell electric energy, with the latter buying peaking regulation from the former. The research results indicate that the proposed model can significantly reduce 66.79 % carbon emissions, increase 33.96 % non-fossil variable renewable energy integration and optimize the generation structure of coal-fired power system.

Suggested Citation

  • Feng, Sida & Zhang, Xingping & Zhang, Haonan & Ju, Liwei & Zhang, Xinyue, 2024. "A two-stage bi-level electricity-carbon coordinated optimization model for China's coal-fired power system considering variable renewable energy bidding," Energy, Elsevier, vol. 312(C).
    • Handle: RePEc:eee:energy:v:312:y:2024:i:c:s0360544224034169
    DOI: 10.1016/j.energy.2024.133638
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224034169
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.133638?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lan, Liuhan & Zhang, Xingping & Zhang, Youzhong, 2023. "Low carbon and efficiency oriented day-ahead joint electrical energy and ancillary services market clearing model for generation-side in China," Energy Economics, Elsevier, vol. 121(C).
    2. Ying, Zhou & Xin-gang, Zhao, 2021. "The impact of Renewable Portfolio Standards on carbon emission trading under the background of China’s electricity marketization reform," Energy, Elsevier, vol. 226(C).
    3. Hu, Junfeng & Yan, Qingyou & Kahrl, Fredrich & Liu, Xu & Wang, Peng & Lin, Jiang, 2021. "Evaluating the ancillary services market for large-scale renewable energy integration in China's northeastern power grid," Utilities Policy, Elsevier, vol. 69(C).
    4. Zhao, Xiaoli & Chen, Haoran & Liu, Suwei & Ye, Xiaomei, 2020. "Economic & environmental effects of priority dispatch of renewable energy considering fluctuating power output of coal-fired units," Renewable Energy, Elsevier, vol. 157(C), pages 695-707.
    5. Yin, Guangzhi & Duan, Maosheng, 2022. "Pricing the deep peak regulation service of coal-fired power plants to promote renewable energy integration," Applied Energy, Elsevier, vol. 321(C).
    6. Nazari, M.E. & Ardehali, M.M., 2017. "Profit-based unit commitment of integrated CHP-thermal-heat only units in energy and spinning reserve markets with considerations for environmental CO2 emission cost and valve-point effects," Energy, Elsevier, vol. 133(C), pages 621-635.
    7. Ruhang, Xu & Jia, Jia, 2023. "Towards reliability competition: Non-cooperative market mechanism under high variable renewable energy penetration," Applied Energy, Elsevier, vol. 331(C).
    8. Zhang, Xinyue & Guo, Xiaopeng & Zhang, Xingping, 2023. "Bidding modes for renewable energy considering electricity-carbon integrated market mechanism based on multi-agent hybrid game," Energy, Elsevier, vol. 263(PA).
    9. Ding, Yihong & Tan, Qinliang & Shan, Zijing & Han, Jian & Zhang, Yimei, 2023. "A two-stage dispatching optimization strategy for hybrid renewable energy system with low-carbon and sustainability in ancillary service market," Renewable Energy, Elsevier, vol. 207(C), pages 647-659.
    10. Afshar, Karim & Ghiasvand, Farshad Shamsini & Bigdeli, Nooshin, 2018. "Optimal bidding strategy of wind power producers in pay-as-bid power markets," Renewable Energy, Elsevier, vol. 127(C), pages 575-586.
    11. Lin, Boqiang & Jia, Zhijie, 2019. "What will China's carbon emission trading market affect with only electricity sector involvement? A CGE based study," Energy Economics, Elsevier, vol. 78(C), pages 301-311.
    12. Li, Jianglong & Ho, Mun Sing & Xie, Chunping & Stern, Nicholas, 2022. "China's flexibility challenge in achieving carbon neutrality by 2060," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    13. Srikanth Reddy & Lokesh Panwar & Bijaya Ketan Panigrahi & Rajesh Kumar & Lalit Goel & Ameena Saad Al-Sumaiti, 2020. "A profit-based self-scheduling framework for generation company energy and ancillary service participation in multi-constrained environment with renewable energy penetration," Energy & Environment, , vol. 31(4), pages 549-569, June.
    14. Zhao, Xiaoli & Cai, Qiong & Zhang, Sufang & Luo, Kaiyan, 2017. "The substitution of wind power for coal-fired power to realize China's CO2 emissions reduction targets in 2020 and 2030," Energy, Elsevier, vol. 120(C), pages 164-178.
    15. Wang, Hao-ran & Feng, Tian-tian & Zhong, Cheng, 2023. "Effectiveness of CO2 cost pass-through to electricity prices under “electricity-carbon” market coupling in China," Energy, Elsevier, vol. 266(C).
    Full references (including those not matched with items on IDEAS)

    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. Abdi, Hamdi, 2021. "Profit-based unit commitment problem: A review of models, methods, challenges, and future directions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    2. Zhang, Juntao & Cheng, Chuntian & Yu, Shen & Shen, Jianjian & Wu, Xinyu & Su, Huaying, 2022. "Preliminary feasibility analysis for remaking the function of cascade hydropower stations to enhance hydropower flexibility: A case study in China," Energy, Elsevier, vol. 260(C).
    3. Wang, Benke & Li, Chunhua & Ban, Yongshuang & Zhao, Zeming & Wang, Zengxu, 2024. "A two-tier bidding model considering a multi-stage offer‑carbon joint incentive clearing mechanism for coupled electricity and carbon markets," Applied Energy, Elsevier, vol. 368(C).
    4. Raihan, Asif & Mainul Bari, A.B.M., 2024. "Energy-economy-environment nexus in China: The role of renewable energies toward carbon neutrality," Innovation and Green Development, Elsevier, vol. 3(3).
    5. Fangyi Li & Zhaoyang Ye & Xilin Xiao & Dawei Ma, 2019. "Environmental Benefits of Stock Evolution of Coal-Fired Power Generators in China," Sustainability, MDPI, vol. 11(19), pages 1-17, October.
    6. Zhao, Xiaoli & Chen, Haoran & Liu, Suwei & Ye, Xiaomei, 2020. "Economic & environmental effects of priority dispatch of renewable energy considering fluctuating power output of coal-fired units," Renewable Energy, Elsevier, vol. 157(C), pages 695-707.
    7. Jia, Min & Zhang, Zhe & Zhang, Li & Zhao, Liang & Lu, Xinbo & Li, Linyan & Ruan, Jianhui & Wu, Yunlong & He, Zhuoming & Liu, Mei & Jiang, Lingling & Gao, Yajing & Wu, Pengcheng & Zhu, Shuying & Niu, M, 2024. "Optimization of electricity generation and assessment of provincial grid emission factors from 2020 to 2060 in China," Applied Energy, Elsevier, vol. 373(C).
    8. Tan, Qinliang & Han, Jian & Liu, Yuan, 2023. "Examining the synergistic diffusion process of carbon capture and renewable energy generation technologies under market environment: A multi-agent simulation analysis," Energy, Elsevier, vol. 282(C).
    9. Li, Muyuan & Yao, Jinfeng & Shen, Yanbo & Yuan, Bin & Simmonds, Ian & Liu, Yunyun, 2023. "Impact of synoptic circulation patterns on renewable energy-related variables over China," Renewable Energy, Elsevier, vol. 215(C).
    10. Jia, Zhijie & Lin, Boqiang, 2020. "Rethinking the choice of carbon tax and carbon trading in China," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    11. Yue, Tingyi & Wang, Honglei & Li, Chengjiang & Hu, Yu-jie, 2024. "Optimization strategies for green power and certificate trading in China considering seasonality: An evolutionary game-based system dynamics," Energy, Elsevier, vol. 311(C).
    12. Li, Yan & Feng, Tian-tian & Liu, Li-li & Zhang, Meng-xi, 2023. "How do the electricity market and carbon market interact and achieve integrated development?--A bibliometric-based review," Energy, Elsevier, vol. 265(C).
    13. Renjie Zhang & Hsingwei Tai & Kuotai Cheng & Huizhong Dong & Wenhui Liu & Junjie Hou, 2022. "Carbon Emission Efficiency Network: Evolutionary Game and Sensitivity Analysis between Differentiated Efficiency Groups and Local Governments," Sustainability, MDPI, vol. 14(4), pages 1-19, February.
    14. Dong, Weijie & He, Guoqing & Cui, Quansheng & Sun, Wenwen & Hu, Zhenlong & Ahli raad, Erfan, 2022. "Self-scheduling of a novel hybrid GTSOFC unit in day-ahead energy and spinning reserve markets within ancillary services using a novel energy storage," Energy, Elsevier, vol. 239(PE).
    15. Ding, Yihong & Tan, Qinliang & Shan, Zijing & Han, Jian & Zhang, Yimei, 2023. "A two-stage dispatching optimization strategy for hybrid renewable energy system with low-carbon and sustainability in ancillary service market," Renewable Energy, Elsevier, vol. 207(C), pages 647-659.
    16. Hosseini, Seyyed Ahmad & Toubeau, Jean-François & De Grève, Zacharie & Vallée, François, 2020. "An advanced day-ahead bidding strategy for wind power producers considering confidence level on the real-time reserve provision," Applied Energy, Elsevier, vol. 280(C).
    17. Li, Yanbin & Wang, Jiani & Wang, Weiye & Liu, Chang & Li, Yun, 2023. "Dynamic pricing based electric vehicle charging station location strategy using reinforcement learning," Energy, Elsevier, vol. 281(C).
    18. Huang, Zhi-xiong & Yang, Xiandong, 2021. "Carbon emissions and firm innovation," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 503-513.
    19. Shi, Shouyuan & Yu, Tao & Lan, Chaofan & Pan, Zhenning, 2024. "Estimating the actual emission cost in an annual compliance cycle: Synergistic generation and carbon trading optimization for price-taking generation companies," Applied Energy, Elsevier, vol. 376(PA).
    20. Hu, Yu & Chi, Yuanying & Zhou, Wenbing & Li, Jialin & Wang, Zhengzao & Yuan, Yongke, 2023. "The interactions between renewable portfolio standards and carbon emission trading in China: An evolutionary game theory perspective," Energy, Elsevier, vol. 271(C).

    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:eee:energy:v:312:y:2024:i:c:s0360544224034169. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    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.