Formulation of Locational Marginal Electricity-Carbon Price in Power Systems

Decarbonisation of power systems is essential for realising carbon neutrality, in which the economic cost caused by carbon is needed to be qualified. Based on the formulation of locational marginal price (LMP), this paper proposes a locational marginal electricity-carbon price (EC-LMP) model to reveal carbon-related costs caused by power consumers. A carbon-price-integrated optimal power flow (C-OPF) is then developed to maximise the economic efficiency of the power system considering the costs of electricity and carbon. Case studies are presented to demonstrate the new formulation and the results demonstrate the efficacy of the EC-LMP-based C-OPF on decarbonisation and economy.