IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v69y2021ics0957178721000138.html
   My bibliography  Save this article

Evaluating the ancillary services market for large-scale renewable energy integration in China's northeastern power grid

Author

Listed:
  • Hu, Junfeng
  • Yan, Qingyou
  • Kahrl, Fredrich
  • Liu, Xu
  • Wang, Peng
  • Lin, Jiang

Abstract

The installed renewable energy capacity in China is the largest in the world. However, the curtailment of renewable energy remains problematic. To alleviate this problem, a pilot for integrating the ancillary service market for renewable energy in China's northeastern power grid began in 2017. Before this time, a compensatory ancillary service cost mechanism was implemented, in which thermal plants not providing ancillary service paid the costs of the thermal plants providing ancillary service under government supervision. The pilot ancillary service market allowed thermal plants providing ancillary service to make independent quotes. Renewable energy plants were included in those paying the ancillary service costs. We examine the effects of the ancillary service market in the context of large-scale renewable energy integration. The results show that this market has given rise to competing interests between renewable energy and thermal plants. Therefore, measures must be taken to improve the ancillary service market, including eliminating the ancillary service bidding limits, establishing a renewable auction mechanism, and transforming the spot market.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:juipol:v:69:y:2021:i:c:s0957178721000138
    DOI: 10.1016/j.jup.2021.101179
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178721000138
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2021.101179?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. 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.
    2. Hong Lu & Caixia Wang & Qionghui Li & Ryan Wiser & Kevin Porter, 2019. "Reducing wind power curtailment in China: comparing the roles of coal power flexibility and improved dispatch," Climate Policy, Taylor & Francis Journals, vol. 19(5), pages 623-635, May.
    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. Zhang, Zhao-Sui & Sun, Yuan-Zhang & Cheng, Lin, 2013. "Potential of trading wind power as regulation services in the California short-term electricity market," Energy Policy, Elsevier, vol. 59(C), pages 885-897.
    5. Moghaddam, Saeed Zolfaghari & Akbari, Tohid, 2018. "Network-constrained optimal bidding strategy of a plug-in electric vehicle aggregator: A stochastic/robust game theoretic approach," Energy, Elsevier, vol. 151(C), pages 478-489.
    6. 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.
    7. Singarao, Venkatesh Yadav & Rao, Vittal S., 2016. "Frequency responsive services by wind generation resources in United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 55(C), pages 1097-1108.
    8. Li, Canbing & Shi, Haiqing & Cao, Yijia & Wang, Jianhui & Kuang, Yonghong & Tan, Yi & Wei, Jing, 2015. "Comprehensive review of renewable energy curtailment and avoidance: A specific example in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1067-1079.
    9. Fan, Jing-Li & Wang, Jia-Xing & Hu, Jia-Wei & Wang, Yu & Zhang, Xian, 2019. "Optimization of China’s provincial renewable energy installation plan for the 13th five-year plan based on renewable portfolio standards," Applied Energy, Elsevier, vol. 254(C).
    10. 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.
    11. Godoy-González, Diego & Gil, Esteban & Gutiérrez-Alcaraz, Guillermo, 2020. "Ramping ancillary service for cost-based electricity markets with high penetration of variable renewable energy," Energy Economics, Elsevier, vol. 85(C).
    12. Taibi, Emanuele & Fernández del Valle, Carlos & Howells, Mark, 2018. "Strategies for solar and wind integration by leveraging flexibility from electric vehicles: The Barbados case study," Energy, Elsevier, vol. 164(C), pages 65-78.
    13. Attya, A.B. & Anaya-Lara, O. & Leithead, W.E., 2018. "Novel concept of renewables association with synchronous generation for enhancing the provision of ancillary services," Applied Energy, Elsevier, vol. 229(C), pages 1035-1047.
    14. Nock, Destenie & Krishnan, Venkat & McCalley, James D., 2014. "Dispatching intermittent wind resources for ancillary services via wind control and its impact on power system economics," Renewable Energy, Elsevier, vol. 71(C), pages 396-400.
    15. Bird, Lori & Lew, Debra & Milligan, Michael & Carlini, E. Maria & Estanqueiro, Ana & Flynn, Damian & Gomez-Lazaro, Emilio & Holttinen, Hannele & Menemenlis, Nickie & Orths, Antje & Eriksen, Peter Børr, 2016. "Wind and solar energy curtailment: A review of international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 577-586.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Jianjun & Liu, Fang & Li, Li & Zhang, Jian, 2022. "More than innovativeness: Comparing residents’ motivations for participating renewable energy communities in different innovation segments," Renewable Energy, Elsevier, vol. 197(C), pages 552-563.
    2. Shen, Jian-jian & Cheng, Chun-tian & Jia, Ze-bin & Zhang, Yang & Lv, Quan & Cai, Hua-xiang & Wang, Bang-can & Xie, Meng-fei, 2022. "Impacts, challenges and suggestions of the electricity market for hydro-dominated power systems in China," Renewable Energy, Elsevier, vol. 187(C), pages 743-759.
    3. Thomaßen, Georg & Redl, Christian & Bruckner, Thomas, 2022. "Will the energy-only market collapse? On market dynamics in low-carbon electricity systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    4. Ding, Yihong & Tan, Qinliang & Shan, Zijing & Han, Jian & Zhang, Yimei, 2023. "A two-stage dispatching optimization strategy for hybrid renewable energy system with low-carbon and sustainability in ancillary service market," Renewable Energy, Elsevier, vol. 207(C), pages 647-659.

    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. 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).
    2. Cui, Qi & He, Ling & Han, Guoyi & Chen, Hao & Cao, Juanjuan, 2020. "Review on climate and water resource implications of reducing renewable power curtailment in China: A nexus perspective," Applied Energy, Elsevier, vol. 267(C).
    3. 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).
    4. 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).
    5. Zhang, Yuhu & Ren, Jing & Pu, Yanru & Wang, Peng, 2020. "Solar energy potential assessment: A framework to integrate geographic, technological, and economic indices for a potential analysis," Renewable Energy, Elsevier, vol. 149(C), pages 577-586.
    6. Yin, Guangzhi & Duan, Maosheng, 2022. "Pricing the deep peak regulation service of coal-fired power plants to promote renewable energy integration," Applied Energy, Elsevier, vol. 321(C).
    7. Bai, Bo & Wang, Yihan & Fang, Cong & Xiong, Siqin & Ma, Xiaoming, 2021. "Efficient deployment of solar photovoltaic stations in China: An economic and environmental perspective," Energy, Elsevier, vol. 221(C).
    8. Bai, Bo & Xiong, Siqin & Song, Bo & Xiaoming, Ma, 2019. "Economic analysis of distributed solar photovoltaics with reused electric vehicle batteries as energy storage systems in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 213-229.
    9. Ruhang, Xu & Jia, Jia, 2023. "Towards reliability competition: Non-cooperative market mechanism under high variable renewable energy penetration," Applied Energy, Elsevier, vol. 331(C).
    10. Libo Zhang & Qian Du & Dequn Zhou, 2021. "Grid Parity Analysis of China’s Centralized Photovoltaic Generation under Multiple Uncertainties," Energies, MDPI, vol. 14(7), pages 1-19, March.
    11. Fuquan Zhao & Fanlong Bai & Xinglong Liu & Zongwei Liu, 2022. "A Review on Renewable Energy Transition under China’s Carbon Neutrality Target," Sustainability, MDPI, vol. 14(22), pages 1-27, November.
    12. 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).
    13. Siavash Asiaban & Nezmin Kayedpour & Arash E. Samani & Dimitar Bozalakov & Jeroen D. M. De Kooning & Guillaume Crevecoeur & Lieven Vandevelde, 2021. "Wind and Solar Intermittency and the Associated Integration Challenges: A Comprehensive Review Including the Status in the Belgian Power System," Energies, MDPI, vol. 14(9), pages 1-41, May.
    14. Hedayat Saboori & Shahram Jadid & Mehdi Savaghebi, 2021. "Spatio-Temporal and Power–Energy Scheduling of Mobile Battery Storage for Mitigating Wind and Solar Energy Curtailment in Distribution Networks," Energies, MDPI, vol. 14(16), pages 1-19, August.
    15. Kumar, T. Bharath & Singh, Anoop, 2021. "Ancillary services in the Indian power sector – A look at recent developments and prospects," Energy Policy, Elsevier, vol. 149(C).
    16. Yan, Zhe & Zhang, Yongming & Liang, Runqi & Jin, Wenrui, 2020. "An allocative method of hybrid electrical and thermal energy storage capacity for load shifting based on seasonal difference in district energy planning," Energy, Elsevier, vol. 207(C).
    17. Shangjia Wang & Wenhui Zhao & Shuwen Fan & Lei Xue & Zijuan Huang & Zhigang Liu, 2022. "Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model," Energies, MDPI, vol. 15(11), pages 1-18, May.
    18. Kang, Dongju & Kang, Doeun & Hwangbo, Sumin & Niaz, Haider & Lee, Won Bo & Liu, J. Jay & Na, Jonggeol, 2023. "Optimal planning of hybrid energy storage systems using curtailed renewable energy through deep reinforcement learning," Energy, Elsevier, vol. 284(C).
    19. Fan, Jing-Li & Wang, Jia-Xing & Hu, Jia-Wei & Yang, Yang & Wang, Yu, 2021. "Will China achieve its renewable portfolio standard targets? An analysis from the perspective of supply and demand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    20. Shen, Wei & He, Jijiang & Yao, Shangheng, 2021. "Green industrial policy in the post grid parity era: Governing integrated Solar+ projects in China," Energy Policy, Elsevier, vol. 150(C).

    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:juipol:v:69:y:2021:i:c:s0957178721000138. 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: https://www.sciencedirect.com/journal/utilities-policy .

    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.