Analytical Model of the Impact of Carbon Market on Electricity Market under Green and Low Carbon Goals

This paper addresses the relationship between the carbon market and the power market in terms of their mutual influence, and analyzes the impact of the carbon market on the generation cost of thermal power units by establishing an economic dispatch model of the power system considering the cost of carbon, which minimizes the total cost of the power system while satisfying the economic dispatch constraints, and then finds its influence on the outcome of the power market clearing. The results of the empirical application show that there is a significant increase in generation costs and a change in the structure of system generation with the participation of the carbon market.