Evaluation on the Cost of Energy Transition: A Case Study of Fujian, China

Abstract

The development of renewable energy in Fujian province has entered a bottleneck period in recent years. Considering the impact of COVID-19, how to formulate the provincial energy development strategy based on the 14th Five-year Plan is an important issue that need to be addressed for Fujian. This paper constructs a provincial Computable General Equilibrium model to analyze the cost of energy transition to renewable resources and tries to find a better pathway that integrated into account social efficiency and cost. The simulation results show that after the implementation of energy substitution, the actual electricity price will increase by about 1.6% and the electricity consumption in various sectors will also decrease, especially in the secondary industry. Overall, the marginal impact of energy substitution on the economy is significant.

Evaluation on the Impact of General Industrial and Commercial Electricity Price Reduction: A Case Study of Fujian Province

“…Moreover, the price reduction space generated by the reform of the electricity market should be used to reduce large-scale industrial and general industrial and commercial electricity prices. Lin et al (2021) simulated the effect of an electricity price decline by constructing a general equilibrium model. The results show that the decline in electricity price will reduce product prices in other sectors to varying degrees, increase sectoral output, and increase income to residents and enterprises level.…”

The Impacts of Market Segmentation on Thermal Power Generation Efficiency

“…The stylized facts of the uneven distribution of natural resources and local imbalances between power demand and supply exist in China's power industry (Wang et al, 2014;Lin et al, 2021). In order to alleviate power shortages, the Chinese government has begun to establish provincial power markets since 1988, which is of benefit to the local governments of different provinces.…”