IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i15p5359-d870326.html
   My bibliography  Save this article

Hierarchical Low-Carbon Economic Dispatch with Source-Load Bilateral Carbon-Trading Based on Aumann–Shapley Method

Author

Listed:
  • Junpei Nan

    (College of Electrical Engineering, Zhejiang University, Hangzhou 310027, China)

  • Jieran Feng

    (College of Electrical Engineering, Zhejiang University, Hangzhou 310027, China)

  • Xu Deng

    (School of Electric Power Engineering, South China University of Technology, Guangzhou 510641, China)

  • Chao Wang

    (Shaoxing Power Supply Company, State Grid Zhejiang Electric Power Co., Ltd., Shaoxing 312000, China)

  • Ke Sun

    (State Grid Zhejiang Electric Power Co., Ltd., Hangzhou 310063, China)

  • Hao Zhou

    (College of Electrical Engineering, Zhejiang University, Hangzhou 310027, China)

Abstract

Introducing carbon trading is an essential way to decarbonize the power system. Many existing studies mainly consider source-side unilateral carbon trading (UCT). However, there are still rare studies considering source-load bilateral carbon trading (BCT). The effect of source-load BCT on system-wide carbon mitigation is worth studying. To fill this research gap, a hierarchical low-carbon economic-dispatch model with source-load BCT based on the Aumann–Shapley method was proposed. In the first layer, economic-dispatch was conducted to minimize the power-generation costs and source-side carbon-trading costs. Then, based on the carbon-emission flow (CEF) theory, the actual load carbon emissions can be obtained and passed to the second layer. At the second layer, the demand-response optimization was performed to minimize the load-side carbon-trading costs. Finally, the proposed model was tested on the modified New England 39-bus and IEEE 118-bus systems using the MATLAB/YALMIP platform with the Gurobi solver. The results indicate that the proposed model can effectively facilitate peak-load shifting, wind-power consumption, and carbon mitigation. Furthermore, compared with the models only considering source-side or load-side UCT, the proposed source-load BCT model has obvious advantages in carbon mitigation.

Suggested Citation

  • Junpei Nan & Jieran Feng & Xu Deng & Chao Wang & Ke Sun & Hao Zhou, 2022. "Hierarchical Low-Carbon Economic Dispatch with Source-Load Bilateral Carbon-Trading Based on Aumann–Shapley Method," Energies, MDPI, vol. 15(15), pages 1-17, July.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:15:p:5359-:d:870326
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/15/5359/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/15/5359/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mostafaeipour, Ali & Bidokhti, Abbas & Fakhrzad, Mohammad-Bagher & Sadegheih, Ahmad & Zare Mehrjerdi, Yahia, 2022. "A new model for the use of renewable electricity to reduce carbon dioxide emissions," Energy, Elsevier, vol. 238(PA).
    2. Jin, Jingliang & Zhou, Peng & Li, Chenyu & Guo, Xiaojun & Zhang, Mingming, 2019. "Low-carbon power dispatch with wind power based on carbon trading mechanism," Energy, Elsevier, vol. 170(C), pages 250-260.
    3. Dan Welsby & James Price & Steve Pye & Paul Ekins, 2021. "Unextractable fossil fuels in a 1.5 °C world," Nature, Nature, vol. 597(7875), pages 230-234, September.
    4. Zhou, Sheng & Tong, Qing & Pan, Xunzhang & Cao, Min & Wang, Hailin & Gao, Ji & Ou, Xunmin, 2021. "Research on low-carbon energy transformation of China necessary to achieve the Paris agreement goals: A global perspective," Energy Economics, Elsevier, vol. 95(C).
    5. Niklas Höhne & Matthew J. Gidden & Michel Elzen & Frederic Hans & Claire Fyson & Andreas Geiges & M. Louise Jeffery & Sofia Gonzales-Zuñiga & Silke Mooldijk & William Hare & Joeri Rogelj, 2021. "Wave of net zero emission targets opens window to meeting the Paris Agreement," Nature Climate Change, Nature, vol. 11(10), pages 820-822, October.
    6. Wang, Rutian & Wen, Xiangyun & Wang, Xiuyun & Fu, Yanbo & Zhang, Yu, 2022. "Low carbon optimal operation of integrated energy system based on carbon capture technology, LCA carbon emissions and ladder-type carbon trading," Applied Energy, Elsevier, vol. 311(C).
    7. Cristina Peñasco & Laura Díaz Anadón & Elena Verdolini, 2021. "Systematic review of the outcomes and trade-offs of ten types of decarbonization policy instruments," Nature Climate Change, Nature, vol. 11(3), pages 257-265, March.
    8. Kang, Jia-Ning & Wei, Yi-Ming & Liu, Lan-Cui & Han, Rong & Yu, Bi-Ying & Wang, Jin-Wei, 2020. "Energy systems for climate change mitigation: A systematic review," Applied Energy, Elsevier, vol. 263(C).
    9. Emad M. Ahmed & Rajarajeswari Rathinam & Suchitra Dayalan & George S. Fernandez & Ziad M. Ali & Shady H. E. Abdel Aleem & Ahmed I. Omar, 2021. "A Comprehensive Analysis of Demand Response Pricing Strategies in a Smart Grid Environment Using Particle Swarm Optimization and the Strawberry Optimization Algorithm," Mathematics, MDPI, vol. 9(18), pages 1-24, September.
    10. Tan, Qinliang & Ding, Yihong & Ye, Qi & Mei, Shufan & Zhang, Yimei & Wei, Yongmei, 2019. "Optimization and evaluation of a dispatch model for an integrated wind-photovoltaic-thermal power system based on dynamic carbon emissions trading," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    11. Wang, Yunqi & Qiu, Jing & Tao, Yuechuan, 2022. "Robust energy systems scheduling considering uncertainties and demand side emission impacts," Energy, Elsevier, vol. 239(PD).
    12. Yu, Biying & Sun, Feihu & Chen, Chen & Fu, Guanpeng & Hu, Lin, 2022. "Power demand response in the context of smart home application," Energy, Elsevier, vol. 240(C).
    13. Suman, A., 2021. "Role of renewable energy technologies in climate change adaptation and mitigation: A brief review from Nepal," Renewable and Sustainable Energy Reviews, Elsevier, vol. 151(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. Yuzhe Xie & Yan Yao & Yawu Wang & Weiqiang Cha & Sheng Zhou & Yue Wu & Chunyi Huang, 2022. "A Cooperative Game-Based Sizing and Configuration of Community-Shared Energy Storage," Energies, MDPI, vol. 15(22), pages 1-17, November.

    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. Jieran Feng & Junpei Nan & Chao Wang & Ke Sun & Xu Deng & Hao Zhou, 2022. "Source-Load Coordinated Low-Carbon Economic Dispatch of Electric-Gas Integrated Energy System Based on Carbon Emission Flow Theory," Energies, MDPI, vol. 15(10), pages 1-24, May.
    2. Jieran Feng & Hao Zhou, 2022. "Bi-Level Optimal Capacity Planning of Load-Side Electric Energy Storage Using an Emission-Considered Carbon Incentive Mechanism," Energies, MDPI, vol. 15(13), pages 1-18, June.
    3. Jin, Jingliang & Wen, Qinglan & Cheng, Siqi & Qiu, Yaru & Zhang, Xianyue & Guo, Xiaojun, 2022. "Optimization of carbon emission reduction paths in the low-carbon power dispatching process," Renewable Energy, Elsevier, vol. 188(C), pages 425-436.
    4. Huazhen Cao & Chong Gao & Xuan He & Yang Li & Tao Yu, 2020. "Multi-Agent Cooperation Based Reduced-Dimension Q(λ) Learning for Optimal Carbon-Energy Combined-Flow," Energies, MDPI, vol. 13(18), pages 1-22, September.
    5. Du, Dajun & Zhu, Minggao & Wu, Dakui & Li, Xue & Fei, Minrui & Hu, Yukun & Li, Kang, 2024. "Distributed security state estimation-based carbon emissions and economic cost analysis for cyber–physical power systems under hybrid attacks," Applied Energy, Elsevier, vol. 353(PA).
    6. Tan, Qinliang & Ding, Yihong & Zheng, Jin & Dai, Mei & Zhang, Yimei, 2021. "The effects of carbon emissions trading and renewable portfolio standards on the integrated wind–photovoltaic–thermal power-dispatching system: Real case studies in China," Energy, Elsevier, vol. 222(C).
    7. Yan, Sizhe & Wang, Weiqing & Li, Xiaozhu & Lv, Haipeng & Fan, Tianyuan & Aikepaer, Sumaiya, 2023. "Stochastic optimal scheduling strategy of cross-regional carbon emissions trading and green certificate trading market based on Stackelberg game," Renewable Energy, Elsevier, vol. 219(P1).
    8. Yang, Meng & Liu, Yisheng, 2023. "Research on multi-energy collaborative operation optimization of integrated energy system considering carbon trading and demand response," Energy, Elsevier, vol. 283(C).
    9. Liping Zhao & Xincheng Li & Xiangmei Li & Chenyang Ai, 2022. "Dynamic Changes and Regional Differences of Net Carbon Sequestration of Food Crops in the Yangtze River Economic Belt of China," IJERPH, MDPI, vol. 19(20), pages 1-16, October.
    10. Steven Jackson & Eivind Brodal, 2021. "Optimization of a Mixed Refrigerant Based H 2 Liquefaction Pre-Cooling Process and Estimate of Liquefaction Performance with Varying Ambient Temperature," Energies, MDPI, vol. 14(19), pages 1-18, September.
    11. Hu, Xueyue & Wang, Chunying & Elshkaki, Ayman, 2024. "Material-energy Nexus: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    12. Weth, Mark A. & Baltzer, Markus & Bertram, Christoph & Hilaire, Jérôme & Johnston, Craig, 2024. "The scenario-based equity price impact induced by greenhouse gas emissions," Discussion Papers 30/2024, Deutsche Bundesbank.
    13. Tomasz Jałowiec & Henryk Wojtaszek, 2021. "Analysis of the RES Potential in Accordance with the Energy Policy of the European Union," Energies, MDPI, vol. 14(19), pages 1-33, September.
    14. Jiaqi Wu & Qian Zhang & Yangdong Lu & Tianxi Qin & Jianyong Bai, 2023. "Source-Load Coordinated Low-Carbon Economic Dispatch of Microgrid including Electric Vehicles," Sustainability, MDPI, vol. 15(21), pages 1-21, October.
    15. Zhang, Zhonglian & Yang, Xiaohui & Li, Moxuan & Deng, Fuwei & Xiao, Riying & Mei, Linghao & Hu, Zecheng, 2023. "Optimal configuration of improved dynamic carbon neutral energy systems based on hybrid energy storage and market incentives," Energy, Elsevier, vol. 284(C).
    16. Verrier, Brunilde & Strachan, Neil, 2024. "Sunset and sunrise business strategies shaping national energy transitions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 195(C).
    17. Zhu, Qingyuan & Xu, Chengzhen & Pan, Yinghao & Wu, Jie, 2024. "Identifying critical transmission sectors, paths, and carbon communities for CO2 mitigation in global supply chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    18. Hemmings, Peter & Mulheron, Michael & Murphy, Richard J. & Prescott, Matt, 2023. "Investigating the robustness of UK airport net zero plans," Journal of Air Transport Management, Elsevier, vol. 113(C).
    19. Christian Hauenstein & Franziska Holz & Lennart Rathje & Thomas Mitterecker, 2022. "Stranded Assets in the Coal Export Industry? The Case of the Australian Galilee Basin," Discussion Papers of DIW Berlin 2003, DIW Berlin, German Institute for Economic Research.
    20. Gao, Chunjiao & Chen, Hongxi, 2023. "Electricity from renewable energy resources: Sustainable energy transition and emissions for developed economies," Utilities Policy, Elsevier, vol. 82(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:gam:jeners:v:15:y:2022:i:15:p:5359-:d:870326. 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.