Development of a low carbon energy sharing based trading framework considering carbon tax incidence

Abstract

While contributing to emission reduction, the intermittency of renewable energy sources has brought significant impact and challenges to the reliability and security of power system operations. Energy storage system (ESS) is one of the most effective options to tackle such challenges; however, better strategies are needed to maximize the effectiveness of ESS implementations. Given the technological advances and return of investment, distributed sharing scheme and hybrid energy systems can be used to achieve low-carbon power system status. This research starts with an energy-sharing platform compared to a banking system where all participants can transfer both energy and money. With Bayesian Nash Equilibrium of game theory considering the up-reserve, the call-auction method can be used to find the optimal trading strategies with maximum traction volume to achieve more profit based on case studies. An energy sharing strategy, as a two-layer microgrid, uses distributed renewable energy generations and a hybrid energy storage system. The operation management of thermal and electrical energy loads allows for a variety of end-user modes with different layers of participants. The two-layer energy sharing model provides maximal benefit of trade to participants and improves load scheduling. Effects of the tax levied on both the demand side and supply side are also studied in the thesis as another essential consideration in achieving power system decarbonization. Three models are studied: statistical demand elasticity, power flow, and carbon emission flow. Because the elasticity of supply and demand is different, consumers bear slightly more carbon tax than suppliers when the carbon cost is directly levied on consumers, and vice versa. The research provides scientific insights and effective approaches for planners and policy makers in determining effective approaches towards the development of a low-carbon economy.