An energy trading system with consideration of CO₂ emissions

Abstract

Abstract Abatement of CO 2 emission is one of the most important issues in the 21st century regarding preservation of the earth environment. This paper addresses a utility operations planning problem for distributed energy management systems (DEMSs), where we are to obtain optimal plans that minimize both costs and CO 2 emissions. A DEMS consists of multiple entities that seek their own economic profits. In this paper, we give a mathematical formulation of the utility operations planning problem for each entity, and propose an energy trading market, which utlizes a multi‐attribute auction protocol in order to deal with both a price and a CO 2 emission rate. Experimental results show that collaboration among entities through the market provides a more profitable plan for each entity and abatement of CO 2 emission is also achieved. © 2007 Wiley Periodicals, Inc. Electr Eng Jpn, 162(4): 54–63, 2008; Published online in Wiley InterScience ( www.interscience.wiley. com ). DOI 10.1002/eej.20418