A Multiple Market Trading Mechanism for Electricity, Renewable Energy Certificate and Carbon Emission Right of Virtual Power Plants

TL;DR

This paper proposes a multi-market trading mechanism for virtual power plants that enhances profits and trading efficiency across electricity, renewable energy certificates, and carbon emission rights, considering regulatory standards.

Contribution

It introduces an inventory-based trading model for VPPs in multiple markets, optimizing profits under RPS and CE quota constraints, with theoretical analysis and case study validation.

Findings

Profit of VPP increases with the proposed mechanism

Trading decisions are improved under multiple market conditions

Case studies verify the model's effectiveness

Abstract

A multiple market trading mechanism for the VPP to participate in electricity, renewable energy certificate (REC) and carbon emission right (CER) markets is proposed. With the introduction of the inventory mechanism of REC and CER, the profit of the VPP increases and better trading decisions with multiple markets are made under the requirements of renewable portfolio standard (RPS) and carbon emission (CE) quota requirements. According to the Karush-Kuhn-Tucker (KKT) conditions of the proposed model, properties of the multiple market trading mechanism are discussed. Results from case studies verify the effectiveness of the proposed model.