Abstract: In view of the unresolved transaction contradictions initiated by CO₂ emission allowance price between carbon exchange and independent generation enterprises in generation side,the contract for difference (CFD) of emissions trading is introduced in theoretical aspect to evade generation enterprises' market power and stabilize emission allowance price.Given this background,the profit risk and economic benefit of carbon exchange and generation enterprises under the emissions trading mode considering CFD are measured.On the basis,the risk-benefit balance models of contract negotiation between both transaction parties are constructed,and the solving programs of optimal parameters for the models are developed,which promote the formation of coordination and competitive trading mechanism for CO₂ emissions supply and electricity production.The results of numerical simulation and analysis indicate that the proposed models have evaded the risk brought by price fluctuation of emissions trading in generation side effectively,and both the transaction risks faced by the negotiation parties are negatively correlated with the CFD's interval length of the initial effective biddings.

Key words: electricity market, CO₂ emissions trading in generation side, contract for difference, risk-benefit balance, contract negotiation