An optimization-based study to analyze the impacts of clean energy and carbon emission mechanisms on inter-regional energy exchange

The construction of China's smart grid mainly focuses on the development of the ultra-high voltage line, which benefits the inter-regional energy transmission. The inter-regional energy exchange can promote the development of the energy industry in West China where there is an economic backwardness; at the same time it can reduce the pressure of energy supply and environment protection in East China with a well-developed economy. To study the impacts of clean energy and carbon emission mechanisms on the inter-regional energy exchange, two optimization models are first developed with the objectives of minimizing the generation cost and the carbon emission cost, respectively. Then an integrated optimization model is established through incorporating the aforementioned two models within a general framework, with the objective of minimizing the overall cost. The results indicate that the economic efficiency of the clean energy would be higher than that of the conventional energy in the regional energy exchange. Moreover, there would be a difference in the energy exchange's sensitivity to the carbon price gap of the inter-regional energy exchange; setting different carbon prices would effectively guide the inter-regional energy exchange.