Bidding Strategies and Equilibrium Analysis in Electricity Market under RPS and CET

In order to achieve the dual carbon target, the government has been seeking effective incentives for green electricity market. In this paper, a multi-market, multi-actor game model is developed, in which the wholesale electricity market, the tradable green certificate (TGC) market and the carbon emissions trading (CET) market are regarded as general Cournot models, and retailers participate in the retail competition by making bids. Firstly, a new market trading framework is formed and explains the variation of changes in equilibrium outcomes under renewable portfolio standard(RPS) and CET. Secondly, based on the new trading framework, a multi-market and multi-agent game model is proposed. Finally, the impacts of changes in RPS quotas and carbon allowances on the strategic behaviour of fossil-fueled generation companies (FF GenCos), renewable energy generation companies (RE GenCos) and retailers are analysed through numerical examples. The results show that the implementation of RPS and CET provides significant incentives for both RE GenCos and retailers to secure the power output of FF GenCos, reduce carbon emissions and promote the development of renewable energy.