Market reform of Yunnan electricity in southwestern China: Practice, challenges and implications

Liu, Shuangquan; Yang, Qingliang; Cai, Huaxiang; Yan, Maode; Zhang, Maolin; Wu, Dianning; Xie, Ming

doi:10.1016/j.rser.2019.109265

Cited by 48 publications

(14 citation statements)

References 79 publications

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“…Some of this authority has gradually been relegated to provincial governments over the past few years in an effort to attract investment in large-scale projects and strengthen the role of provincial government in supervising projects during their construction phase (Chen et al, 2019). The significant conflicts of interest and lack of effective coordination among various public agencies across different levels of government have been identified by some studies as one of the key reasons for the slower-than-expected progress of several large ultra-high voltage direct current (UHVDC) transmission projects (Cui et al, 2020;Li, 2014;Liu et al, 2018;Su, 2019), which form the backbone of the southern corridor of the West-East Electricity Transfer Project, aimed at exporting hydropower from Yunnan to Guangdong (Liu et al, 2019).…”

Section: Fragmented Authoritymentioning

confidence: 99%

Explaining the slow progress of coal phase-out: The case of Guangdong-Hong Kong-Macao Greater Bay Region

et al. 2021

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Prompted by the urgency of climate change, this paper analyses the impediments for coal phase-out, by using the Greater Bay Region in China as a case study. Rather than factors specific to coal production, transport and consumption (e.g., subsidies, and vested interests), as suggested by existing literature, the analysis of this paper demonstrates that coal phase-out in the region has encountered a range of market (e.g., high gas price), infrastructure (such as, inadequate network), and regulatory (e.g., prolonged project approval) impediments; these impediments have hindered the effective deployment of alternative energy sources, raising concern about coal phase-out and its crippling impacts on the security of energy supply.Redressing these impediments is therefore a key priority for promoting a smooth coal phaseout in the region. This requires a mix of policies addressing two dimensions: 1) those aimed at squeezing out coal from the energy-mix to create room for alternative low-carbon energy sources; and 2) those aimed at supporting the uptake of these sources. Implementing these policies is however a challenging task as it relies on close-centre-local, and inter-and intraregional cooperation, especially in a resource-poor region with a disperse energy endowment.Achieving this is difficult because the energy policy process of the country has long been characterised by fragmented authority and territorial administrative divisions with a proclivity for local governments to work in isolation from each other.

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Section: Fragmented Authoritymentioning

confidence: 99%

Explaining the slow progress of coal phase-out: The case of Guangdong-Hong Kong-Macao Greater Bay Region

et al. 2021

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“…It was found that relaxing natural gas prices, levying carbon taxes, and choosing environmental subsidies could promote the market penetration of natural gas power. Taking Yunnan province of China as an example, Liu et al [9] systematically analyzed a series of policies for introducing new energy.…”

Section: Electricity Market Reformmentioning

confidence: 99%

Research on Dynamic and Complexity of Energy-Saving Investment about Multichannel and Multienergy Supply Chain

2020

Complexity

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Considering the multienergy structure of the electricity market and supply-side competition reform in China, a dual-channel and multiproduct supply chain model is constructed. There are three players in the game model: new energy company and traditional energy company provide energy for the market and the State Grid at the same time. The State Grid is a retailer who buys electricity from two companies and supplies to the market after converting and transmitting the power. Three companies can invest in grid management for saving energy and reducing losses. The energy loss rate is an exponential function of line loss investment. Through the bifurcation graph, Lyapunov exponent, and the basin of parameter, the complex characteristics of the investment market are analyzed. It is interesting to find the Grazing–Hopf bifurcation which usually occurs in nonlinear circuits. The mixed expectation of bounded rationality and the naive expectation is conducive to suppressing the bifurcation and chaos of the market. When external shocks occur, the control model has good robustness.

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“…These studies found that the new round of reform improved electricity generation efficiency, enhanced the productive efficiency of the electricity sector, reduced energy prices for households, and increased renewable energy generation. There are also studies that have examined the impact of the reform on particular provinces (e.g., Cheng et al, 2018;Liu et al, 2019) or on specific issues, such as electricity pricing (e.g., Sun, 2015), subsidies (e.g., Wang and Lin, 2017a,b), or the dispatch mechanism (e.g., Wei et al, 2018;Chen et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

In between the state and the market: An empirical assessment of the early achievements of China's 2015 electricity reform

2021

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This is the first study to investigate and quantify the extent to which the 2015 reform has already impacted the economic and technical performance as well as the security of supply of China's electricity sector. We use provincial data from 2003 to 2018 to estimate the impacts of the reform on on-grid prices, average retail electricity prices (including those for households) and supply reliability. We adopt fixed effect models together with other dynamic panel data models. We find that the 2015 reform has already had a negative impact on on-grid prices of electricity generated from thermal energy and on overall average retail prices, but the impacts on other prices are not statistically significant. Our results also suggest that the 2015 reform has had significantly negative impacts on technical efficiency, as measured by the coal burned per unit of thermal generation, but no impact on the line loss rate of electricity transmission. In addition, our empirical analysis suggests that the 2015 reform has reduced reliability and increased the instances of supply interruptions. These results are robust to different estimators and models. Finally, the effect of the reform is heterogeneous across regions. Our findings suggest that additional steps are needed to further improve the overall economic efficiency of the electricity sector in China, despite significant progress arising from the 2015 reform. The results may also provide useful lessons for other developing economies aiming to reform their power sectors and who are facing similar choices between the roles of the state and the market in ensuring efficient outcomes. JEL classification: L94; P21; P28.

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Market reform of Yunnan electricity in southwestern China: Practice, challenges and implications

Cited by 48 publications

References 79 publications

Explaining the slow progress of coal phase-out: The case of Guangdong-Hong Kong-Macao Greater Bay Region

Explaining the slow progress of coal phase-out: The case of Guangdong-Hong Kong-Macao Greater Bay Region

Research on Dynamic and Complexity of Energy-Saving Investment about Multichannel and Multienergy Supply Chain

In between the state and the market: An empirical assessment of the early achievements of China's 2015 electricity reform

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