Research on the Linkage Equilibrium Mechanism Between Power Market and Carbon Market Based on Multi-timescale Coupling Modeling

There is a complex linkage between the power market and the carbon market, with the power generators as the linkage. The price of carbon allowances will affect the equilibrium results of the power market, and the equilibrium results of the power market will also affect the carbon emissions of the power generation industry, which in turn will affect the price of carbon allowances. However, due to the different granularity of the operation time of the two markets, there is a complex coupling relationship between the two markets on the time scale; power generators have different time boundaries when making decisions in the two markets, and they need to comprehensively consider the coupling between the two markets on the time scale in order to achieve the maximisation of the comprehensive benefits. Based on the above background and problems, this paper innovatively proposes a multi-timescale coupling model based on the linkage equilibrium and timescale coupling between electricity and carbon markets. The model simulates the dynamic equilibrium of the electricity and carbon markets in the electricity forward market and spot market through the two-stage decision-making process of the generators. Validated by simulation in an IEEE 30 node system, the results show that the model can help generators make comprehensive optimisation decisions throughout the year, and can accurately reflect the coupling relationship of the power-carbon market under different time scales.