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Structural distortion and the shortage of peak-load power resources in China: A screening curve approach and case study of Shandong Province

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  • Zhu, Yanlei
  • Song, Yan
  • Yuan, Jiahai

Abstract

The structural distortion of the power supply in China has resulted in the dilemma of the coexistence of power overcapacity and peak power gap, which is caused by insufficient compensation to the peaking resources due to irrational power market mechanisms. This study employs a screening curve model to clarify the positions of various power resources in Shandong Province. The study finds that Shandong's peak load should be met by life-extended coal units and demand response, which could save 23.44 billion yuan annually. With an extension in peak-load duration, the supply mix becomes more economical and feasible.

Suggested Citation

  • Zhu, Yanlei & Song, Yan & Yuan, Jiahai, 2021. "Structural distortion and the shortage of peak-load power resources in China: A screening curve approach and case study of Shandong Province," Utilities Policy, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:juipol:v:70:y:2021:i:c:s0957178721000588
    DOI: 10.1016/j.jup.2021.101224
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