Government regulation of renewable energy generation and transmission in China’s electricity market

Fang, Debin; Zhao, Chaoyang; Yu, Qian

doi:10.1016/j.rser.2018.05.039

Cited by 93 publications

(25 citation statements)

References 34 publications

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“…Many countries have already developed plans to use renewable energy to generate electricity for the large-scale utilization of renewable resources in the next few years [3]. However, due to the high cost and instability of renewable energy power generation, it is less competitive than traditional fossil energy power generation [4,5]. For this reason, countries around the world have implemented different renewable energy power generation support policies to solve the problem.…”

Section: Research Backgroundmentioning

confidence: 99%

Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard

et al. 2019

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China officially implemented the renewable portfolio standard (RPS) on 1 January 2019, and it remains uncertain as to whether this can effectively solve the problem of renewable energy consumption in China and ease the pressure of government subsidies. In order to study the impact of this policy on China's renewable energy power generation and explore RPS policy that is more suitable for the characteristics of China's renewable energy, we first develop a revenue function model based on the just released RPS policy to explore the effectiveness of the policy, the feasibility conditions for successful implementation, and the problems that may be encountered during the implementation process. Then, we propose policy recommendations based on the possible problems of the current policy and design an "incremental electricity price" supplementary policy to improve the possibility of successful implementation of the RPS policy. Finally, an evolutionary game model is established to simulate and verify the possibility of successful implementation of the supplementary policy. The main research results are: (1) the essence of the current RPS policy is the comprehensive implementation policy of the RPS and feed-in-tariff (FiT); (2) because of the characteristics of China's energy structure, the implementation of this policy reform is more resistant; (3) the quantitative research on the revenue function model shows that the current transaction price of the green certificate market is very low, which is not conducive to alleviating the state's subsidy pressure on renewable energy power generation; and (4) analysis of empirical data shows that the successful implementation of the "incremental electricity price" policy relies on the initial strategies of grid companies and users. , the feasibility of successful implementation, and the problems that may be encountered during implementation. Then, based on the above analysis, a policy more suitable for the development of China's renewable energy power generation is designed to improve the possibility of successful implementation of the RPS mechanism in China. Review of the Literatures Research on Renewable Portfolio Standard Policy ApplicationThe number of FiT adopters increased from 2 in 1990 to approximately 70 in 2018, while RPS adopters increased from 1 in 1999 to approximately 15 in 2018. Countries from every geographic region and income level have adopted these policies. Contrary to what rational self-interested actors would do based on costs, benefits, and utility maximization, some of the top oil exporters in the world have adopted RPS or FiT. These countries include Iran and the United Arab Emirates in the Middle East, Kazakhstan in Asia, Nigeria and Algeria in Africa, Norway and the United Kingdom in Europe, and Brazil in the Americas and so on [11][12][13].The analysis of an effective support policy is the basis for promoting the development of renewable energy. Like China, several other countries have also experienced policy reforms from RPS to FiT or from FiT to RPS. Ac...

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Section: Research Backgroundmentioning

confidence: 99%

Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard

et al. 2019

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“…On the other hand, the approval of constructing coal power plants was decentralized in 2014, allowing local province governments to commission new plants although the central government trend is to reduce the coal energy dependence in the country [211]. As of 2017, nearly 70% of China's electricity is generated from coal plants [212]. These factors, combined with the economic favourability of using decentralized coal plants by local governments rather than importing RES from distant provinces, led to the following consequences:…”

Section: Case Study: Interconnectors Utilization Challenge In Chinamentioning

confidence: 99%

“…Moreover, the overall lost wind energy from 2011 to 2016 approached 150 TWh. The equivalent 2 emissions to generating this lost energy from coal based plants is 0.12 billion tons [212]. More detailed analysis of the main factors affecting renewables curtailment are summarized and analysed in [208], specifically for wind energy.…”

Section: )mentioning

confidence: 99%

HVDC Transmission: Technology Review, Market Trends and Future Outlook

Alassi

Bañales

Ellabban

et al. 2019

Renewable and Sustainable Energy Reviews

283

104

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HVDC systems are playing an increasingly significant role in energy transmission due to their technical and economic superiority over HVAC systems for long distance transmission. HVDC is preferable beyond 300-800 km for overhead point-to-point transmission projects and for the cable based interconnection or the grid integration of remote offshore wind farms beyond 50-100 km. Several HVDC review papers exist in literature but often focus on specific geographic locations or system components. In contrast, this paper presents a detailed, up-to-date, analysis and assessment of HVDC transmission systems on a global scale, targeting expert and general audience alike. The paper covers the following aspects: technical and economic comparison of HVAC and HVDC systems; investigation of international HVDC market size, conditions, geographic sparsity of the technology adoption, as well as the main suppliers landscape; and high-level comparisons and analysis of HVDC system components such as Voltage Source Converters (VSCs) and Line Commutated Converters (LCCs), etc. The presented analysis are supported by practical case studies from existing projects in an effort to reveal the complex technical and economic considerations, factors and rationale involved in the evaluation and selection of transmission system technology for a given project. The contemporary operational challenges such as the ownership of Multi-Terminal DC (MTDC) networks are also discussed. Subsequently, the required development factors, both technically and regulatory, for proper MTDC networks operation are highlighted, including a future outlook of different HVDC system components. Collectively, the role of HVDC transmission in achieving national renewable energy targets in light of the Paris agreement commitments is highlighted with relevant examples of potential HVDC corridors.

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“…FIT is a policy mechanism designed to accelerate investment in renewable energy technologies with dedicated supporting resources, most commonly tax relaxation and financial subsidies. RPS requires electricity suppliers to procure a certain percentage of their total supplied power from renewable-based sources [15][16][17]. Some countries also impose that requirement upon major power users [18].…”

Section: Introductionmentioning

confidence: 99%

Consolidated Climate Markets Mechanism Analysis—Case Studies of China, Japan, and Taiwan

Chuang¹,

Lien

Roche

et al. 2019

Sustainability

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The post-Kyoto Protocol era has seen a transition to focus on the development of a renewable energy (RE) market as a primary instrument to reduce greenhouse gas (GHG) emissions worldwide. This paper analyses the development of GHG reduction and RE market in China, Japan, and Taiwan that are geographically proximate but socioeconomically diverse, and each plays a different but significant role in the world’s economy. By deploying a consolidated model incorporating the key components of market drivers underlying the goal of achieving GHG reduction, we threaded through the policy- and market-instruments implemented for each of the case studies over the past 20 years using the model. One commonality is that subsidiary schemes in the form of feed-in tariffs have served as an effective policy tool to boost the growth of renewable energy installations, though the worsening financial burden renders this path unsustainable. Over-reliance on feed-in-tariff schemes may have also impeded the liberation of an energy market pivotal to the success of elevating RE portfolio through trading mechanisms. What followed were the implementations of renewable energy certificate (REC) systems that have experienced various roadblocks leading to failures of the certificate market. By understanding the paths engaged in each of the cases, a conceptualized strategy depicted by the consolidated model is proposed to show the links between a renewable market and a carbon market. The framework would expedite the trading of RECs and carbon credits to accelerate the attainment of GHG emission reduction goals.

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Government regulation of renewable energy generation and transmission in China’s electricity market

Cited by 93 publications

References 34 publications

Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard

Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard

HVDC Transmission: Technology Review, Market Trends and Future Outlook

Consolidated Climate Markets Mechanism Analysis—Case Studies of China, Japan, and Taiwan

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