ABSTRACT
In this chapter, power system operation considering renewable energy and carbon emission is introduced. With the traditional economic dispatch model, low carbon operation is to include carbon emissions in the optimization model and obtain generation schedules that consider both generation costs and emission costs. With power system market operations, carbon emission allowances are allocated and traded through emission trading system (ETS) and renewable energy certificate (REC) markets, and so on. In this chapter, we introduce the methods for low carbon power system operations and discuss impacts of emission trading on generation scheduling and electricity market prices, as well as low carbon market mechanism.
