Decision Optimization in Electricity Market : Multitimescale Coupled Tradable Green Certificates and Green Electricity Trade

Based on the Renewable Portfolio Standard (RPS), we establish a multitimescale electricity, multi-entity, two-tier optimization decision model that includes medium- and long-term markets for renewable and traditional energy, day-ahead markets for renewable and traditional energy, and real-time markets. The model is transformed into a mixed-integer linear programming (MILP) model to solve the market equilibrium point using the strong pairwise theorem and binary expansion method. The main contribution of this paper is to bridge the medium- and long-term electricity markets with the spot market and considers the economic impact of coupling the green electricity market and green certificate market on renewable energy (RE) generators, traditional energy generators, and electricity consumers. The results of the algorithm demonstrate that under market equilibrium conditions, the clearing price in the day-ahead market for RE equals the clearing price in the day-ahead market for traditional energy plus the green certificate price. Moreover, the output of RE affects the output of conventional energy. The costs for electricity consumers shift from decreasing to increasing when RE penetration is approximately 30%, and the price of a green certificate is RMB100 per certificate. The profit growth rate of RE generators decrease when RE penetration is greater than 35%. Traditional energy generators with small installed capacities adopt riskier market behaviors to declare a higher electricity volume and obtain higher benefits in market transactions