Summary
The paper analyzes alternative ways to integrate carbon regulation into electricity markets, using the Russian day-ahead market as a case study. Including CO₂ costs in generators’ marginal bids increases wholesale prices and creates windfall profits for low-carbon generators, shifting the burden to consumers. An alternative nodal approach is proposed, where carbon costs are allocated directly to consumers based on electricity consumption and nodal carbon intensity calculated from power flow tracing. Modeling with a carbon price of 1,000
Read more Read lessRUB/tCO₂ shows that this method reduces total consumer payments by about 43% while preserving decarbonization incentives and avoiding price distortions.
Additional informations
| Publication type | Session Materials |
|---|---|
| Reference | C5_11213_2026 |
| Publication year | |
| Publisher | CIGRE |
| Country | Russian Federation |
| Study committees | |
| File size | 585 KB |
| Price for non member | 30 € |
| Price for member | 30 € |
Authors
SENCHUK Dmitriy - Association NP Market Council; DOLMATOVA Marina - Association NP Market Council
Keywords
Сarbon pricing, electricity market design, nodal pricing, carbon intensity allocation, windfall profits, power system modeling, energy transition, decarbonization
