Carbon Pricing Model for Power Generation Enterprises in Electricity Markets

doi:10.11930/j.issn.1004-9649.2013.10.151.3

Abstract

Abstract: Carbon trading pilots are being established in China, and the pricing of carbon is a key issue in a carbon market. A pricing model based on Nash Equilibrium theory is established in this paper to explore the market value of carbon allowance in the power market. This model considers the influencing factors such as the market requirements, carbon emission cap, generation cost and emission reduction cost and so on, and is established with the objective of maximizing the benefit of power plants. The equilibrium price of carbon allowance and the corresponding benefit of the power plants is calculated by resolving the model. Sensitivity analysis is then made to evaluate the influence of the aforementioned influencing factors on the pricing of carbon,the results indicates that carbon price is positively correlated with carbon emission reduction cost and the market demand, and is negatively correlated with carbon emission cap and the generation cost.

Key words: electricity market, power generation enterprise, carbon emission, pricing, Nash equilibrium

CLC Number:

TK01

SONG Yi-hang, HE Nan, ZHANG Hui-juan, TAN Zhong-fu. Carbon Pricing Model for Power Generation Enterprises in Electricity Markets[J]. Electric Power, 2013, 46(10): 151-154.

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URL: https://www.electricpower.com.cn/EN/10.11930/j.issn.1004-9649.2013.10.151.3

https://www.electricpower.com.cn/EN/Y2013/V46/I10/151

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