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To what extent does wind power deployment affect vested interests? A case study of the Northeast China Grid

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  • Zhao, Xiaoli
  • Zhang, Sufang
  • Zou, Yasheng
  • Yao, Jin

Abstract

China's wind power is in an embarrassing state. Along with its dramatic development since 2005, its curtailment ratio has been rising. Although this could be attributed to both physical and institutional factors, it is the institutional obstacles, mainly resulting from the adjustment difficulties of interests distribution, that have exercised a greater impact. The stakeholders relating to wind power integration are thermal power companies, grid companies and local governments. The extent to which wind power deployment affects these vested interests determines the core institutional obstacles to be addressed. Mainly based on quantitative and case analyses, we argue that currently wind deployment in China has a little impact on the interests of thermal companies, moderate impact on the interests of grid companies and great impact on local governments. We recommend that it is crucial to elevate the role of environmental protection and renewable energy increase while de-emphasize the role of economic growth in the evaluation of local governments’ performance, as well as provide incentives for grid companies to attend more to their social responsibilities rather than their scale expansion and revenue growth.

Suggested Citation

  • Zhao, Xiaoli & Zhang, Sufang & Zou, Yasheng & Yao, Jin, 2013. "To what extent does wind power deployment affect vested interests? A case study of the Northeast China Grid," Energy Policy, Elsevier, vol. 63(C), pages 814-822.
    • Handle: RePEc:eee:enepol:v:63:y:2013:i:c:p:814-822
    DOI: 10.1016/j.enpol.2013.08.092
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    3. Liu, Shiyu & Bie, Zhaohong & Lin, Jiang & Wang, Xifan, 2018. "Curtailment of renewable energy in Northwest China and market-based solutions," Energy Policy, Elsevier, vol. 123(C), pages 494-502.
    4. Mengjia Ren, Lee G. Branstetter, Brian K. Kovak, Daniel Erian Armanios, and Jiahai Yuan, 2021. "Why Has China Overinvested in Coal Power?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 113-134.
    5. Zhang, Sufang & Wang, Wei & Wang, Lu & Zhao, Xiaoli, 2015. "Review of China’s wind power firms internationalization: Status quo, determinants, prospects and policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1333-1342.
    6. Xia, Fang & Song, Feng, 2017. "The uneven development of wind power in China: Determinants and the role of supporting policies," Energy Economics, Elsevier, vol. 67(C), pages 278-286.
    7. Michael Davidson & Fredrich Kahrl & Valerie Karplus, 2016. "Towards a political economy framework for wind power: Does China break the mould?," WIDER Working Paper Series 032, World Institute for Development Economic Research (UNU-WIDER).
    8. Yuan, Jiahai & Lei, Qi & Xiong, Minpeng & Guo, Jingsheng & Hu, Zheng, 2016. "The prospective of coal power in China: Will it reach a plateau in the coming decade?," Energy Policy, Elsevier, vol. 98(C), pages 495-504.
    9. Michael R. Davidson & Fredrich Kahrl & Valerie J. Karplus, 2016. "Towards a political economy framework for wind power: Does China break the mould?," WIDER Working Paper Series wp-2016-32, World Institute for Development Economic Research (UNU-WIDER).
    10. 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).
    11. Kejia Yang & Johan Schot & Bernhard Truffer, 2020. "Shaping the Directionality of Sustainability Transitions: The Diverging Development Patterns of Solar PV in Two Chinese Provinces," SPRU Working Paper Series 2020-14, SPRU - Science Policy Research Unit, University of Sussex Business School.
    12. Zhao, Xiaoli & Cai, Qiong & Zhang, Sufang & Luo, Kaiyan, 2017. "The substitution of wind power for coal-fired power to realize China's CO2 emissions reduction targets in 2020 and 2030," Energy, Elsevier, vol. 120(C), pages 164-178.
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    14. Shen, Xingchi & Lyu, Shoujun, 2019. "Wind power development, government regulation structure, and vested interest groups: Analysis based on panel data of Province of China," Energy Policy, Elsevier, vol. 128(C), pages 487-494.

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