Blockchain-based bilateral bidding market mechanism with carbon allocation on both supply and demand sides

Abstract

Recently, the interaction between power generation and load has been continuously strengthened, providing a new method for realizing the decarbonization of the power system. An auction method that enables a low-carbon economic dispatch is designed in this study, where blockchain technology is employed to record the whole process data credibly. According to the regional division of market entities, carbon emissions are allocated to regions and entities by using the Owen value method. In order to reduce the expected carbon emission of entities, an additional carbon price is added to the original quotation through the allocation results. Case studies are conducted based on the typical output characteristics of wind and photovoltaic power generation in the bilateral bidding market hourly. The results have validated that the proposed method can reduce expected carbon emissions in the power system by prioritizing zero-carbon and low-carbon generation units.