A Multiple Market Trading Mechanism for Electricity, Renewable Energy Certificate and Carbon Emission Right of Virtual Power Plants

Abstract: A multiple market trading mechanism for the VPP to participate in electricity, renewable energy certificate (REC) and carbon emission right (CER) markets is proposed. With the introduction of the inventory mechanism of REC and CER, the profit of the VPP increases and better trading decisions with multiple markets are made under the requirements of renewable portfolio standard (RPS) and carbon emission (CE) quota requirements. According to the Karush-Kuhn-Tucker (KKT) conditions of the proposed model, properties of the multiple market trading mechanism are discussed. Results from case studies verify the effectiveness of the proposed model.