Electricity and CO2 emissions system prices modeling and optimization

Abstract

We present two stochastic models optimizing a hydro-thermal power system; the first from the perspective of a global system and the second from a sub-system's (country or utility) perspective within a liberalized market. Particularly CO2 emission quotas and CO2 certificate prices are taken into account. The first model seeks to compute the electricity system marginal price as well as the CO2 emissions marginal price by minimizing the expected system's cost of operation. In the second model, the expected revenues of the sub-system within a liberalized electricity market while considering stochastic inflows, electricity, fuel and CO2 prices are maximized. The above-mentioned stochastic variables are represented via joint scenarios. The resulting stochastic linear program will be solved via hybrid SDP/SDDP. Index Terms-CO2 portfolio management, CO2 market price, CO2 quota, CO2 emission trading, energy, power systems optimization, SDDP, Stochastic Linear Programming I. NOMENCLATUREThe nomenclature of this article is summarized in Table I. All data are given in capital letters while the variables are denoted in small letters. The ξ captures the stochastic or random aspects of the data. II. INTRODUCTIONT HE EU power system faces important problems of CO2 emissions excess with respect to the Kyoto treaty. As it is widely known, CO2 is one of the most important inhibitors on the global warming phenomenon, for which the EU has been campaigning actively the last years. We can observe actions that are taken in all countries attempting to optimize the operation of the plants subject to the maximization of profits or the minimization of costs while considering the CO2 emissions. In addition, in order to improve the balancing of CO2 emissions, most of the countries are participating in a 'cap and trade' mechanism where utilities and other industries can optimize their CO2 allocation.In 2005, the EU power system generation consisted of 54% thermal, 31% nuclear and 15% of renewable energy sources (EU 27). The thermal percentage, which accounts for the CO2 Steffen Rebennack is with the

Impact of emissions cost on the mid-term generation scheduling in the Greek electricity market

“…2, we show a graph of the weighted average SMP versus the CO 2 price for the three scenarios of fuel prices. This average is computed by weighing the SMP paid to the producers in each hour by the dispatched generation quantity in that hour divided by the total dispatched generation quantity in the entire simulation horizon and then summing over all hours (8,760) of that horizon. This value does not include the impact of the transmission losses (which were not included in the DAS model of Section IV), or any other uplifts that are imposed on the SMP paid by the suppliers.…”

“…In the case of Greece, the impact of the emissions trading on the hydro-thermal mid-term scheduling problem of a real-sized power utility was studied in [7]. The optimal mid-term operation of a hydro-thermal system and subsystem, within an emissions trading scheme was addressed in [8], in the context of stochastic optimization. In the short run, the impact of the ETS on electricity pricing is investigated in [9], with an emphasis on the market structure and market power issues.…”

Optimal capacity configuration method of distributed compressed air energy storage in wind farm

“…Annual ancillary income The power generated by wind farm is no carbon emission, which helps increase the ancillary social benefit [8]. …”

Fair design of CCS infrastructure for power plants in Qatar under carbon trading scheme

“…Emission reductions are expected to take place where the cost of reduction is the lowest. The EU ETS is the largest multinational emission trading scheme in the world, and the governments agree on the national emission caps allocating the allowances to their industrial emitters (Rebennack et al, 2009). Compared with the carbon taxation method which has a fixed price, the ETS permits are traded by the market participants and the cost of emissions is determined by market forces (Villoria-Sáez et al, 2016).…”