No abstract

The energy-only-market implemented in China cannot strongly support largescale renewable energy expansion because the renewable energy expansion may disorderly phase out non-renewable power capacity. However, non-renewable power capacity, particularly the coal-fired power capacity in China, can provide vital power system adequacy needed by renewable energy expansion. We introduce capacity payments to orderly retire current coal-fired power capacity by transforming some of it into reserve capacity in order to support renewable energy expansion. Using generation and transmission expansion results from the SWITCH-China model, this paper proposes an orderly retirement path based on the assumption of implementing capacity payments. Our results show that roughly 100-200 gigawatts (GW) of coal-fired power capacity can continue to serve through 2050, and most of it is used as reserve capacity. Capacity payments of 400-700 billion yuan are needed to achieve this retirement path, and a higher adequacy requirement needs higher payments.Unfortunately, under China's current energy-only market, the large-scale expansion of renewable energy can force coal-fired power plants to disorderly retire and weaken system adequacy. Because the large-scale

China is the world's leading installer of wind turbines. Attention is rapidly rising in China to the potential of offshore wind. We utilize the SWITCH-China power sector capacity expansion model to explore the transformative role that offshore wind can play in China meeting the ambitious but critically needed 1.5°C climate objective. We explore alternative energy mixes and analyze the resulting economic and CO2 emissions benefits of offshore wind as a major energy source for China. We find that offshore wind not only replaces coal-fired power plants, which dominate the energy mix in Chinese coastal regions, but also reduces the need for ultra-high-voltage (UHV) transmission lines to deliver the renewable energy generated in the West China to the coastal regions in the East. Offshore wind enables the coastal provinces to become a new hub of green electricity supply, with offshore wind could provide 2% -28.6% of coastal generation (between 1% and 13.2% of total generation) by 2030 across cost-effective energy development scenarios.

No abstract

No abstract