Impact of emission trading on optimal bidding of price takers in a competitive energy market

Abstract

All over the world, electricity sector emerged as the main source of GHG emission. Emission trading scheme and Renewable support schemes are the main schemes to diminish Greenhouse Gas emissions, which is adopted by various countries and some developed countries or regions are going to be implementing. In the first part, this paper depicts the summary of several obligatory greenhouse gases trading schemes adopted by the various countries worldwide and their future trends in carbon trading. The second part evaluated the optimal bidding of thermal power plant in a competitive energy market with the strategy that considering the impact of CO2 emission in an emission trading market. In this paper, a stochastic optimization model is presented with the theory that the pdf of rival’s bidding are known. For this purpose, in a sealed auction with considering the impact of CO2 emission trading a nature-inspired new genetic algorithm approach has been employed in a day-ahead market to solve the optimization problem with symmetrical and unsymmetrical information of rivals. The feasibility of the proposed method is checked by an IEEE-30 bus system with six generators.