Analysis of wind and thermal power joint generation company’s participation in electric-carbon market

The strategy of generation companies in the electricity market (EM) changes considering the carbon market (CM), not to mention considering joint biddings with new energy unit. This paper first describes a bi-level modeling framework for the participation of coal-fired unit and wind unit in electric-carbon markets. Secondly, the upper model, which is the bidding model for Collaborative generation company (GenCo), is established, and the lower models of electricity clearing model are built. Thirdly, the KKT condition is used to transform the lower model into the optimality conditions for the upper model. Finally, based on the modified IEEE-5 node system case, the electric-carbon market equilibrium problems are solved, and the decision-making behavior of the Collaborative GenCo is analyzed. The joint behavior of coal-fired unit and wind unit in the electric-carbon market is also analyzed. The results show that the carbon market reduces carbon emissions from the power system, and the joint behavior of coal-fired unit and wind unit increases their total profits in the electric-carbon market.