Bridging electricity market and carbon emission market through electric vehicles: Optimal bidding strategy for distribution system operators to explore economic feasibility in China's low-carbon transitions

Lei，Xiang1,2; Yu，Hang2; Yu，Bingxuan1,2; Shao，Ziyun3; Jian，Linni1,2

2023-07-01

10.1016/j.scs.2023.104557

Sustainable Cities and Society   Impact Factor & Quartile

2210-6707

China, as the world's largest emitter of carbon emissions, has implemented carbon markets to reduce carbon emissions, but the economic feasibility of integrating electric vehicles (EVs) into these markets remains uncertain. To address this challenge, we propose a novel methodology for grid integration of EVs based on the Shenzhen carbon inclusive management measures. Our proposed methodology can optimize EV charging schedules based on carbon emission prices and improve the economic feasibility of low-carbon transitions through EVs in China. We incorporate the Black-Scholes model to measure carbon emission option pricing and develop an optimal bidding strategy that considers spatiotemporal uncertainties of EVs and electricity markets. We use numerical simulations with real-world data from Shenzhen carbon emission market and Guangdong electricity market to demonstrate the effectiveness of our proposed methodology. Results reveal that scheduling 100 EVs' charging/discharging behavior properly can generate a revenue of 2379.4 yuan for the distribution system operator, while the revenue for carbon emission reduction (CER) is only 9.35 yuan. This paper demonstrates that the potential revenue of CER may be substantially based on the future scenario for the carbon emission market. These findings provide valuable insights for policymakers and stakeholders seeking to reduce carbon emissions in China's electricity sector.

Bidding strategy Carbon emission market Carbon emission reduction Compound contracts Electric vehicle Electricity market

English

First ; Corresponding

2-s2.0-85152118367

Scopus

1.Department of Electrical and Electronic Engineering,Southern University of Science and Technology,Shenzhen,No. 1088, Xueyuan Ave., Xili, Nanshan,518055,China
2.Southern University of Science and Technology Jiaxing Research Institute,Jiaxing,314050,China
3.School of Electronics and Communication Engineering,Guangzhou University,Guangzhou,510006,China

Lei，Xiang,Yu，Hang,Yu，Bingxuan,et al. Bridging electricity market and carbon emission market through electric vehicles: Optimal bidding strategy for distribution system operators to explore economic feasibility in China's low-carbon transitions[J]. Sustainable Cities and Society,2023,94.

Lei，Xiang,Yu，Hang,Yu，Bingxuan,Shao，Ziyun,&Jian，Linni.(2023).Bridging electricity market and carbon emission market through electric vehicles: Optimal bidding strategy for distribution system operators to explore economic feasibility in China's low-carbon transitions.Sustainable Cities and Society,94.

Lei，Xiang,et al."Bridging electricity market and carbon emission market through electric vehicles: Optimal bidding strategy for distribution system operators to explore economic feasibility in China's low-carbon transitions".Sustainable Cities and Society 94(2023).