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Optimal Bidding Strategies for Wind-Thermal Power Generation Rights Trading: A Game-Theoretic Approach Integrating Carbon Trading and Green Certificate Trading

Author

Listed:
  • Meina Shen

    (School of Economics, University of Chinese Academy of Social Sciences, Beijing 102488, China)

  • Runkun Cheng

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy Power and Low-Carbon Development, North China Electric Power University, Beijing 102206, China)

  • Da Liu

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China
    Beijing Key Laboratory of New Energy Power and Low-Carbon Development, North China Electric Power University, Beijing 102206, China)

Abstract

In response to the challenges of low wind power consumption and high pollution emissions from thermal power, the implementation of wind-thermal power generation rights trading is a proactive attempt to reduce wind power curtailment and promote its consumption. This study first regards the alternating bidding process between the two parties as a dynamic game, using the Rubinstein bargaining game model to determine the incremental profit allocation and optimal bidding for both parties in power generation rights trading. Secondly, an energy conservation and emission reduction model is constructed to analyze the benefits from the perspectives of standard coal consumption saving and the carbon emission reduction caused by power generation rights trading. Finally, a combined trading revenue model is established to analyze the final profit of both parties involved in the trading. The results show that the combined trading of wind-thermal power generation rights, incorporating carbon trading and green certificate trading, can effectively promote coal consumption savings in thermal power units and reduce the carbon emissions of the power industry. Moreover, it significantly increases the final profit for both parties, stimulating the enthusiasm of generators for participating in power generation rights trading, and ultimately promoting wind power consumption.

Suggested Citation

  • Meina Shen & Runkun Cheng & Da Liu, 2024. "Optimal Bidding Strategies for Wind-Thermal Power Generation Rights Trading: A Game-Theoretic Approach Integrating Carbon Trading and Green Certificate Trading," Sustainability, MDPI, vol. 16(16), pages 1-15, August.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:16:p:6739-:d:1451185
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    References listed on IDEAS

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    1. Shayan, Mostafa Esmaeili & Najafi, Gholamhassan & Ghobadian, Barat & Gorjian, Shiva & Mamat, Rizalman & Ghazali, Mohd Fairusham, 2022. "Multi-microgrid optimization and energy management under boost voltage converter with Markov prediction chain and dynamic decision algorithm," Renewable Energy, Elsevier, vol. 201(P2), pages 179-189.
    2. Shang, Nan & Ye, Chengjin & Ding, Yi & Tu, Teng & Huo, Baofeng, 2019. "Risk-based optimal power portfolio methodology for generation companies considering cross-region generation right trade," Applied Energy, Elsevier, vol. 254(C).
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