Enhancing carbon emission reduction in multi-microgrid system through P2P trading and integrated electricity-carbon optimization

The current electricity trading mechanism fails to distinguish the accountability of demands in relation to carbon emissions from power generation, thereby limiting the effectiveness of carbon reduction efforts. Thus, this paper aims to promote demand-side carbon reduction by proposing a comprehensive framework that integrates elec- tricity and carbon optimization for a microgrid (MG) operating in a multi-microgrid system (MMGS), along with decentralized peer-to-peer (P2P) electricity and carbon markets. Specifically, to incentivize low carbon demand response (LCDR), we introduce a dynamic carbon emission responsibility factor of users which quantifies the carbon emission from power generation caused by electricity demands. Furthermore, we propose a reward mechanism for carbon abandonment quotas in the P2P carbon market to encourage MGs to give up surplus carbon emission quotas rather than merely transferring them among market participants. To address the non- anticipativity issue associated with carbon abandonment quotas, we employ multi-stage stochastic dynamic programming. Simulation results from an MMGS consisting of 4 MGs demonstrate that operational costs are reduced by 30.82% through integrated optimization and by 21.55% through LCDR. Furthermore, carbon emissions decrease by 27.93% through the output reduction of traditional units and by 15.71% through relin- quishing surplus carbon quotas in P2P trading. The proposed framework achieves sustainable energy goals.