Volume 5: Innovative Solutions for Energy Transitions: Part IV

Dynamic Real Time Electricity Price Mechanism Based on Low Carbon Emission Wei Zeng, Patrick Selzam, Min Sun, Bo Chen, Zhijun Liao, Wei He, Yangqi Huang

Abstract

Power industry is the most important basic energy industry of national economy development, and it is also a big carbon emitter. With the continuous and rapid growth of renewable energy (RE) capacity, the contradiction between the scale development of renewable energy and the lack of market capacity is becoming more and more obvious. To achieve lowcarbon development and build a low-carbon society, we must develop low-carbon electricity and construct a feasible low carbon electricity price mechanism. In this paper, based on the efficient RE consumption, we introduce carbon cost to construct dynamic and variable low carbon real time electricity price mechanism, including the spot market pricing, grid fees and RE surcharge. Then the paper gives the electricity price strategy and its realization algorithm and verifies the beneficial effect of the proposed pricing mechanism by the example analysis. The proposed low carbon price mechanism is of great practical significance for the development and consumption of large-scale renewable energy.

Keywords Price Mechanism, Real Time, Carbon Emission, Dynamic