Modified Demand Response Market for Carbon Emission Control

Low-carbon guidance on the demand side of the power system is helpful to reduce the carbon emission of the power system. The existing demand-side market lacks an effective guidance mechanism for carbon emission reduction. This paper modifies the existing demand response market by introducing carbon emission control, including the carbon emission constraint and the CO2 price from the carbon market. The OPF-based acquisition of marginal emission factors is used to quantify the carbon emission reduction. Case studies show that the modified demand response market can not only achieve demand-side carbon reduction, but also increase the surplus of demand response resources. The introduction of the CO2 price can reduce the payment from the market to demand response resources, which provides a viable source of funding to facilitate the participation of demand response.