Impact Of Carbon Price On The Cost Of Thermal Power Generation

Abstract

 The carbon market and electricity market play a decisive role in the optimal allocation of market resources, bringing challenges to the operation and development of power generation companies (especially thermal power). Based on the operation mechanism of the national carbon market, this paper constructs a cost assessment model for thermal power generation units in the context of carbon trading, with the aim of studying the impact of the carbon prices on the cost of thermal power generation both in the near and long term. The calculation results of the model show that the carbon price will have a small impact on the cost of electricity for thermal power companies and the electricity market in the near term. However, in the long term, as the carbon quota is tightened and the carbon price is raised, the carbon market will affect the quotation strategies of market players and market clearing price.