A Carbon Emission Allowance Bargaining Model for Energy Transactions Among Prosumers

Abstract

The carbon pricing is the main issue of the carbon trading market for enabling cost-effective decarbonization in the energy networks. A nodal carbon pricing model is firstly proposed based on the sharing and integration of the intra-regional carbon emission allowance. In this regard, the game theory is introduced to construct a multi-agent carbon emission allowance bargaining model in this letter. The alternating direction multiplier method is adopted to solve the model considering the competitional burden and privacy-preserving. Numerical results demonstrate that it could significantly reduce the carbon emissions of regional energy networks and improve the economic benefits of prosumers.