Second price auction for electrical procurement considering carbon emission in power generation market

作者：Fang De Bin^*; Wang Xian Jia; Wu Jing Fang

来源：Systems Engineering-Theory & Practice, 2013, 33(8): 1984-1992.

• Carbon emissions
• Electric power generators
• Electricity market
• Electricity power industries
• Generation of electric power
• Incentive compatible mechanisms
• Multi-attribute auction
• Pricing mechanism

Since the generation of electric power contributes a large percentage of carbon dioxide (CO2) emissions in China, CO2 reduction in the electricity power industry is the most effective way to develop low-carbon economy. In the paper, the multi-attribute procurement auction theory is introduced into the electric power generation market. The CO2 emissions from electric power generation and the grid tariff are identified as key attributes for selecting winners. Based on these two attributes, an optimal multi-attribute procurement mechanism considering CO2 emissions in electric power generation market is firstly established. Then, the incentive compatible mechanism analysis and a reasonable procurement auction process are provided. Finally, a case study is conducted to illustrate such procurement auction process motivates the electric power generators to implement the economic behavior and CO2 emission reduction behavior. Therefore, the proposed multi-attribute procurement mechanism is of great significance in the market-oriented reformation of electric industry and the development of low-carbon economy in China.

• 出版日期2013