Research On Sustainable Development Of Electricity Market Considering Energy-Saving And Ejection-Decreasing

The consumption level of fossil fuels, which mainly include coal, oil and natural gas, keeps growing. This has led to global energy crisis and environmental damage. Kyoto Protocol is the first legally binding agreement the international community reached to reduce the emissions of greenhouse gases, and it provides Clean Development Mechanism and other mechanisms to help developed countries lower their abatement costs. The China government has also issued a number of laws and policies to promote energy-saving and ejection-decreasing and renewable energy development. These initiatives have laid a good foundation to solve the resources and environmental problems home and abroad.Both the energy consumption and emissions of the power industry account for a large proportion, so it makes great importance to effectively promote sustainable development of the power industry. Market-oriented reforms have taken place in power industry since 1990s, transforming from the vertically integrated monopoly to market competition. With higher cost, renewable energy power generation is less competitive in the profit-maximization market. Therefore countries around the world including China have developed renewable energy price policy and received good results. The installed capacity of renewable energy has gradually increased.Emphasis on the role of the market, emissions trading and Renewable Portfolio Standard (RPS) are most widely implemented and the most successful in the mechanisms of promoting ejection-decreasing and renewable energy constructions. Based on the survey of sustainable development of electricity market, this paper mainly studies how emissions trading affects low-emission generations'competitiveness and how RPS affects renewable generations'competitiveness in electricity market.Firstly, taking European Union Emissions Trading Scheme as a example, deep research is made on the significance of emissions trading, emission allocation, transaction monitoring, and the factors that may affect the emission price. A power market equilibrium model with emissions trading is presented, which considers network constraints, load demand elasticity, producing cost, emission reducing cost and uses conjectured supply function to stimulate the game behaviors of generation companies in the energy market. This equilibrium model is a two-level optimization problem, which satisfies the mixed linear complementarity conditions. The software GAMS-PATH is used to solve this optimization problem, wherein the numerical result for a six-bus system verifies the correctness of the model. It's showed that for the generation companies with lower emission rate, the emissions trading helps to increase their market competitiveness.The clearing results can be impacted on by the conjectured parameter and the quantity of emissions initially allocated.Secondly, taking RPS in America as a example, deep research is made on the allocation of renewable energy targets, market tpyes, market applications of Renewable Energy Credits (RECs), and the factors that may affect the RECs price. A power market equilibrium model with RPS is presented, which uses conjectured price function to stimulate the game behaviors of generation companies in the RECs market. The test of a six-bus system verifies the correctness of the model. It's showed that for the renewable generation companies, RPS and RECs trading help to increase their market competitiveness. The clearing results can be impacted on by the conjectured parameter, RPS targets and credit multiplier.Lastly, according to the operational experience abroad, recommendations are made on carrying out emissions trading and RPS in China.