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Using diverse market-based approaches to integrate renewable energy: Experiences from China

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

Abstract

China's power system has faced major challenges to integrate the rapidly growing capacity of wind and solar power. In the context of a highly regulated power system, different localities have sought to use market-based approaches to mitigate this integration problem. In this paper, we use three cases to illustrate why and how these approaches have been implemented. The three cases involve the generation rights trading between hydropower and thermal power in Sichuan province since the late 1990s, the generation rights trading between wind power and thermal power, and the trading of peak regulating ancillary service in northeast China since 2012, and the generation rights trading between renewable units and captive power units in northwest Gansu province in recent years.

Suggested Citation

  • Li, Sitao & Zhang, Sufang & Andrews-Speed, Philip, 2019. "Using diverse market-based approaches to integrate renewable energy: Experiences from China," Energy Policy, Elsevier, vol. 125(C), pages 330-337.
    • Handle: RePEc:eee:enepol:v:125:y:2019:i:c:p:330-337
    DOI: 10.1016/j.enpol.2018.11.006
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    Cited by:

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    4. 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).
    5. Hu, Junfeng & Yan, Qingyou & Kahrl, Fredrich & Liu, Xu & Wang, Peng & Lin, Jiang, 2021. "Evaluating the ancillary services market for large-scale renewable energy integration in China's northeastern power grid," Utilities Policy, Elsevier, vol. 69(C).
    6. Zhao, Wenhui & Zhang, Jiuyang & Li, Ruan & Zha, Ruiming, 2021. "A transaction case analysis of the development of generation rights trading and existing shortages in China," Energy Policy, Elsevier, vol. 149(C).
    7. Yao, Xing & Yi, Bowen & Yu, Yang & Fan, Ying & Zhu, Lei, 2020. "Economic analysis of grid integration of variable solar and wind power with conventional power system," Applied Energy, Elsevier, vol. 264(C).
    8. Luo, Qian & Garcia-Menendez, Fernando & Yang, Haozhe & Deshmukh, Ranjit & He, Gang & Lin, Jiang & Johnson, Jeremiah X, 2023. "The Health and Climate Benefits of Economic Dispatch in China’s Power System," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt2vq7v90q, Department of Agricultural & Resource Economics, UC Berkeley.

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