Strategic Production and Trading in Renewable Energy Certificate Markets: Existence, Uniqueness, and Efficiency of Market Equilibria

被引:4
作者
Huang, Qisheng [1 ]
Xu, Yunjian [2 ]
Courcoubetis, Costas A. [3 ]
机构
[1] Harbin Inst Technol, Sch Mech Engn & Automat, Shenzhen 518055, Guangdong, Peoples R China
[2] Chinese Univ Hong Kong, Dept Mech & Automat Engn, Hong Kong, Peoples R China
[3] Chinese Univ Hong Kong, Sch Data Sci, Shenzhen 518712, Guangdong, Peoples R China
来源
IEEE TRANSACTIONS ON NETWORK SCIENCE AND ENGINEERING | 2024年 / 11卷 / 06期
基金
中国国家自然科学基金;
关键词
Renewable energy sources; Companies; Production; Costs; Games; Finance; Behavioral sciences; Renewable portfolio standard; renewable energy certificate trading; renewable generation; game theory; Nash equilibrium; PORTFOLIO STANDARD; ELECTRICITY; OPERATION; MODEL;
D O I
10.1109/TNSE.2023.3270632
中图分类号
T [工业技术];
学科分类号
08 ;
摘要
As an incentive policy to promote renewable generation, the renewable standard portfolio (RPS) scheme has been widely adopted to enforce utility companies to procure a certain fraction of their energy supply from renewable sources. We construct a non-cooperative game theoretic model to study the strategic behavior of utility companies in a renewable energy certificate (REC) market, where utility companies purchase REC from renewable producers to meet their RPS obligation. In the constructed game, each utility company makes the renewable production decisions so as to minimize its total cost (the sum of renewable production and RPS penalty costs). We establish mild conditions that guarantee the existence of a Nash equilibrium. We further prove that if a Nash equilibrium exists, it must be unique and minimize the system cost. When symmetric utility companies' energy loads are independent and identical Gaussian distributed, as the number of utility companies increases to infinity, we show that the expected cost (of a utility company) converges to a lower bound, the product of the levelized cost of electricity (LCOE) of renewable generation and its expected RPS obligation. Numerical studies on real-world (load, RPS requirement, penalty, and LCOE) data show that the REC trading can reduce 5%-10% of the system cost.
引用
收藏
页码:5538 / 5548
页数:11
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