Abstract: Market mechanism is the basic institutional arrangement to establish long-term carbon emission reduction mechanisms.In view of the current energy saving based generation dispatching lacks market price discovery,this paper studies the decision-making problem about IPSs and the grid corporation's cooperative bidding mechanism based on carbon emission reduction dispatching.The optimal parameters of the mechanism are discussed.Several conclusions are derived.The cooperative bidding mechanism contributes to the supply and operation indices optimization in electricity market.Thus,the policy guidance of generation scheduling is conformed.The profit of the low carbon unit with the cooperative bidding mechanism is higher than which of the case without the mechanism.Thus,the independent power supplier's enthusiasm increases.The research is expected to provide a method and basis for practice of CO₂ emission reducing.

Key words: CO₂ emissions trading, emission reduction dispatching, day-ahead electricity market, bidding mechanism