IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v114y2018icp165-172.html
   My bibliography  Save this article

To what extent will China's ongoing electricity market reforms assist the integration of renewable energy?

Author

Listed:
  • Zhang, Sufang
  • Andrews-Speed, Philip
  • Li, Sitao

Abstract

Poor renewable energy (RE) integration is posing a huge challenge to China's electricity sector. This paper examines the extent to which China's power sector reforms will assist RE integration, and issues to effective implementation. It demonstrates that a well-established electricity market could provide practical solutions to RE integration challenge. China's existing power sector regime heavily regulated by administrative planning constrains RE integration. The on-going electricity reforms (new reforms) in the country such as the transmission and distribution (T&D) tariff reform, the direct trading of electricity, among others, along with new RE policies such as full purchase of guaranteed RE generation and green certificate system, should assist RE integration in the country. However, there are a number of implementation challenges such as the intervention from local governments in direct electricity trades and the lack of a quota system for RE, among others. If these challenges are not properly addressed, the potential positive impacts of the new reforms on RE integration will be undermined. It is recommended that the central government strengthen top-level design and supervision, design and build up electricity spot markets, push forward the regional electricity markets, and facilitate the establishment of a renewable quota system.

Suggested Citation

  • Zhang, Sufang & Andrews-Speed, Philip & Li, Sitao, 2018. "To what extent will China's ongoing electricity market reforms assist the integration of renewable energy?," Energy Policy, Elsevier, vol. 114(C), pages 165-172.
    • Handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:165-172
    DOI: 10.1016/j.enpol.2017.12.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421517308170
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2017.12.002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Pollitt, M. & Yang, C-H. & Chen, H., 2017. "Reforming the Chinese Electricity Supply Sector: Lessons from International Experience," Cambridge Working Papers in Economics 1713, Faculty of Economics, University of Cambridge.
    2. Zhao, Xiaoli & Zhang, Sufang & Yang, Rui & Wang, Mei, 2012. "Constraints on the effective utilization of wind power in China: An illustration from the northeast China grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4508-4514.
    3. Xiong, Weiming & Wang, Yu & Mathiesen, Brian Vad & Zhang, Xiliang, 2016. "Case study of the constraints and potential contributions regarding wind curtailment in Northeast China," Energy, Elsevier, vol. 110(C), pages 55-64.
    4. Kahrl, Fredrich & Williams, Jim & Jianhua, Ding & Junfeng, Hu, 2011. "Challenges to China's transition to a low carbon electricity system," Energy Policy, Elsevier, vol. 39(7), pages 4032-4041, July.
    5. Zhang, Sufang & Andrews-Speed, Philip & Zhao, Xiaoli & He, Yongxiu, 2013. "Interactions between renewable energy policy and renewable energy industrial policy: A critical analysis of China's policy approach to renewable energies," Energy Policy, Elsevier, vol. 62(C), pages 342-353.
    6. Kat Cheung, 2011. "Integration of Renewables: Status and Challenges in China," IEA Energy Papers 2011/9, OECD Publishing.
    7. Luo, Guo-liang & Li, Yan-ling & Tang, Wen-jun & Wei, Xiao, 2016. "Wind curtailment of China׳s wind power operation: Evolution, causes and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1190-1201.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qi, Ye & Dong, Wenjuan & Dong, Changgui & Huang, Caiwei, 2019. "Understanding institutional barriers for wind curtailment in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 476-486.
    2. Dong, Changgui & Qi, Ye & Dong, Wenjuan & Lu, Xi & Liu, Tianle & Qian, Shuai, 2018. "Decomposing driving factors for wind curtailment under economic new normal in China," Applied Energy, Elsevier, vol. 217(C), pages 178-188.
    3. Chen, Hao & Chen, Jiachuan & Han, Guoyi & Cui, Qi, 2022. "Winding down the wind power curtailment in China: What made the difference?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    4. Hao Chen & Chi Kong Chyong & Jia-Ning Kang & Yi-Ming Wei, 2018. "Economic dispatch in the electricity sector in China: potential benefits and challenges ahead," Working Papers EPRG 1819, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Luo, Guo-liang & Li, Yan-ling & Tang, Wen-jun & Wei, Xiao, 2016. "Wind curtailment of China׳s wind power operation: Evolution, causes and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1190-1201.
    6. Guoliang Luo & Erli Dan & Xiaochun Zhang & Yiwei Guo, 2018. "Why the Wind Curtailment of Northwest China Remains High," Sustainability, MDPI, vol. 10(2), pages 1-26, February.
    7. Khanna, Nina Zheng & Zhou, Nan & Fridley, David & Ke, Jing, 2016. "Quantifying the potential impacts of China's power-sector policies on coal input and CO2 emissions through 2050: A bottom-up perspective," Utilities Policy, Elsevier, vol. 41(C), pages 128-138.
    8. Yuk-shing Cheng & Man-kit Chung & Kam-pui Tsang, 2023. "Electricity Market Reforms for Energy Transition: Lessons from China," Energies, MDPI, vol. 16(2), pages 1-16, January.
    9. Flavio Menezes & Xuemei Zhang, 2016. "Regulatory Incentives for a Low-Carbon Electricity Sector in China," Discussion Papers Series 562, School of Economics, University of Queensland, Australia.
    10. Liu, Benxi & Liao, Shengli & Cheng, Chuntian & Chen, Fu & Li, Weidong, 2018. "Hydropower curtailment in Yunnan Province, southwestern China: Constraint analysis and suggestions," Renewable Energy, Elsevier, vol. 121(C), pages 700-711.
    11. Gou, Xing & Chen, Qun & Hu, Kang & Ma, Huan & Chen, Lei & Wang, Xiao-Hai & Qi, Jun & Xu, Fei & Min, Yong, 2018. "Optimal planning of capacities and distribution of electric heater and heat storage for reduction of wind power curtailment in power systems," Energy, Elsevier, vol. 160(C), pages 763-773.
    12. Wei, Yi-Ming & Chen, Hao & Chyong, Chi Kong & Kang, Jia-Ning & Liao, Hua & Tang, Bao-Jun, 2018. "Economic dispatch savings in the coal-fired power sector: An empirical study of China," Energy Economics, Elsevier, vol. 74(C), pages 330-342.
    13. Zhu, Mengye & Qi, Ye & Belis, David & Lu, Jiaqi & Kerremans, Bart, 2019. "The China wind paradox: The role of state-owned enterprises in wind power investment versus wind curtailment," Energy Policy, Elsevier, vol. 127(C), pages 200-212.
    14. Song, Feng & Yu, Zichao & Zhuang, Weiting & Lu, Ao, 2021. "The institutional logic of wind energy integration: What can China learn from the United States to reduce wind curtailment?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    15. Tang, Ningning & Zhang, Yuning & Niu, Yuguang & Du, Xiaoze, 2018. "Solar energy curtailment in China: Status quo, reasons and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 509-528.
    16. Cui, Qi & Liu, Yu & Ali, Tariq & Gao, Ji & Chen, Hao, 2020. "Economic and climate impacts of reducing China's renewable electricity curtailment: A comparison between CGE models with alternative nesting structures of electricity," Energy Economics, Elsevier, vol. 91(C).
    17. Fu, Tong & Jian, Ze, 2020. "A developmental state: How to allocate electricity efficiently in a developing country," Energy Policy, Elsevier, vol. 138(C).
    18. Østergaard, P.A. & Lund, H. & Thellufsen, J.Z. & Sorknæs, P. & Mathiesen, B.V., 2022. "Review and validation of EnergyPLAN," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    19. Zhao, Xiaoli & Li, Shujie & Zhang, Sufang & Yang, Rui & Liu, Suwei, 2016. "The effectiveness of China's wind power policy: An empirical analysis," Energy Policy, Elsevier, vol. 95(C), pages 269-279.
    20. Liu, Hailiang & Andresen, Gorm Bruun & Greiner, Martin, 2018. "Cost-optimal design of a simplified highly renewable Chinese electricity network," Energy, Elsevier, vol. 147(C), pages 534-546.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:114:y:2018:i:c:p:165-172. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.