Model decision making in electricity market and carbon market - A hierarchical game-theoretic approach

Abstract

With the energy transition and shifting to the net zero society, electricity markets have gone through significant reforms from the supply side (e.g. the integration of renewable energy) to the demand side (e.g. the integration of low carbon technologies such as electric vehicles and demand response). More recently, carbon markets have been developed in different countries to stimulate and engineer the transition to net zero. One common observation in both markets is that there exist significant interactive behaviours among market participants.  To better understand such behaviours and their impacts on market outcomes with the aim of achieving optimal market operations, we develop game-theoretic and hierarchical decision-making frameworks to model both markets. In this talk, I will present our recent research progress on the above topics.