Abstract: Captive heating plants are crowding the system baseload, and many captive heating plants in most provinces are not required to participate in peaking regulation. Therefore, in the 14th Five-Year Plan period, when the peaking capacity of the system is getting tighter, we studied the new challenges of captive heating plants under the carbon and renewable energy quotas. Firstly, we proposed a model to free up peaking space for captive heating plants in the northern winter heating period. Secondly, the contribution of the trading agents to the alliance was analyzed, and a multi-factor improved Shapley value profit distribution model was established. Then, the generalized analytic programming method and segmented linearization method were used to transform the nonlinear model into a mixed-integer linear model, and the solver was used to solve the model. Finally, the correctness of the model was verified by simulation, and the impact of carbon trading price on the trading results was explored to alleviate the shortage of peaking in the power system during the transitional period of power reform and to provide benefits for captive heating plants.