2022 IEEE 5th International Electrical and Energy Conference (CIEEC 2022)

Global warming is coming! This work proposes a method to enable carbon reduction, which directly relies on the current market price signals in the power grid. We employ an explainable machine learning framework to identify the carbon emission level using publicly available market data. Such information is valuable to design incentive-based carbon reduction mechanisms. The numerical study shows that an arbitrage strategy based on our learning outputs can effectively reduce the carbon emission rate.