Evaluating the impacts of reforming and integrating China's electricity sector

Chen, Hao; Cui, Jian; Feng, Shuyi; Jiang, Zongyuan

doi:10.1016/j.eneco.2022.105912

Cited by 19 publications

(4 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Since the allocated generation is monthly data, we averaged it to the hourly level. Some parameters such as estimated marginal costs of different technologies were referred from Chen et al 29…”

Section: Impact Evaluation Under Scenario Analysismentioning

confidence: 99%

“…A partial market equilibrium model was used to simulate the operation at an hourly resolution in Guangdong for the entire year of 2018. 29 Unlike the planning scenario, the economic dispatch scenario complies with the cost minimization rule. Generators are assumed to bid their quantities at marginal costs, and hourly equilibrium prices for electricity in the province are determined by the…”

Section: Impact Evaluation Under Scenario Analysismentioning

confidence: 99%

See 1 more Smart Citation

Efficient market versus regulatory capture: a political economy assessment of power market reform in China

Xiang

Zheng

Feng

et al. 2022

Preprint

Self Cite

View full text Add to dashboard Cite

China began implementing market-based economic dispatch through power sector reform in 2015, but the reform has encountered some political and economic challenges. This paper identifies the reform’s efficiency changes and explores and quantifies the influences of market-driven and politically driven mechanisms behind these changes, employing a partial market equilibrium model integrating high-frequency data in southern China. We found the dispatch transition improves the overall efficiency, but regulatory capture in provincial markets limits its full potential. The preference for local enterprises over central state-owned enterprises (SOEs) by local governments, in the form of allocated generation quotas, demonstrates the political challenge for market reform. The allocated generation quota protects small coal-fired and natural gas generators owned by local SOEs, lessening their motivation to improve generation efficiency, even after the reform. As a result, nearly half the potential of carbon dioxide emission reduction and social welfare promotions through market reform is not realized.

show abstract

Section: Impact Evaluation Under Scenario Analysismentioning

confidence: 99%

Section: Impact Evaluation Under Scenario Analysismentioning

confidence: 99%

Efficient market versus regulatory capture: a political economy assessment of power market reform in China

Xiang

Zheng

Feng

et al. 2022

Preprint

Self Cite

View full text Add to dashboard Cite

show abstract

“…Scholarship defines marketization in varying ways and privatization and competition are the key merits of marketization [ 23 ]. The spatial mobility of resources such as labor [ 23 ], capital, land [ 24 ], energy [ 25 ], coastlines, and carbon emissions rights [ 26 ] has attracted much attention. Most scholars agree that marketization has a positive effect on economic integration [ 27 ].…”

Section: Introductionmentioning

confidence: 99%

Digital economy, binary factor mismatch and sustainable economic development of coastal areas in China

Wu,

Tang,

et al. 2024

Heliyon

View full text Add to dashboard Cite

“…In March 2015, China issued "Several Opinions on Further Deepening the Reform of the Electricity System," kicking off the reform of China's electricity (Chen et al, 2022;Cheng et al, 2023). The aim is to restore the commodity attributes of electric energy, establish a fully competitive, open, and orderly Chinese electricity market, and enable the market to play a decisive role in power resource allocation.…”

Section: Introductionmentioning

confidence: 99%

Market bidding method for the inter-provincial delivery of cascaded hydroelectric plants in day-ahead markets considering settlement rules

Han,

Shen,

Cheng

2023

Front. Energy Res.

View full text Add to dashboard Cite

Chinese electricity market reform poses huge challenges to hydropower operations and electricity trading. This study proposes a scheduling method coupling priority electricity and day-ahead trading for large hydropower plants. The study focuses on complex factors such as tariff uncertainty, different types of electricity settlement rules, and inter-provincial electricity transmission links. Spot market tariff scenarios are determined through the Latin hypercube and the K-means methods. A performance formulation of priority electricity deviation considering settlement assessment rules is established. A transmission description for different sub-plants and a triangular linear interpolation method based on binary independent branching mode are proposed to solve inter-regional transmission connections and hydraulic coupling in cascaded hydropower plants, respectively. Finally, the Big M method is employed to equivalently transform the complex non-linear problem into a mixed-integer linear programming (MILP) model. The method is verified with the day-ahead operation of four large hydropower plants downstream of the Jinsha River in China as a case study. Settlement assessment rules, inter-regional power transmission, and price uncertainty are analyzed in three different cases. Three conclusions are obtained: 1) the priority electricity performance rate and the price are positively correlated, which is useful to guide hydropower plants to actively participate in the market. 2) Introducing the prediction error of electricity price in the model can help avoid market decision risk and improve the expected return by approximately 1.2%. 3) Considering the settlement penalty rule is helpful for power generation enterprises to improve power allocation and thus seek higher revenue compared to traditional methods without considering it.

show abstract

Evaluating the impacts of reforming and integrating China's electricity sector

Cited by 19 publications

References 33 publications

Efficient market versus regulatory capture: a political economy assessment of power market reform in China

Efficient market versus regulatory capture: a political economy assessment of power market reform in China

Digital economy, binary factor mismatch and sustainable economic development of coastal areas in China

Market bidding method for the inter-provincial delivery of cascaded hydroelectric plants in day-ahead markets considering settlement rules

Contact Info

Product

Resources

About