Challenges to China's transition to a low carbon electricity system
We examine the challenges to China's transition to a low carbon electricity system, in which renewable energy would play a significant role. China's electricity system currently lacks the flexibility in planning, operations, and pricing to respond to conflicting pressures from demand growth, rising costs, and environmental mandates in a way that simultaneously maintains reliability, decarbonizes the system, and keeps prices within acceptable bounds. Greater flexibility crucially requires the ability to more systematically and transparently manage and allocate costs. This will require re-orientating sector institutions still rooted in central planning, and strengthening independent regulation. Some of the necessary changes require fundamental political and legal reforms beyond the scope of energy policy. However, the system's flexibility can still be increased through the development of traditional planning and regulatory tools and approaches, such as an avoided cost basis for energy efficiency investments, more integrated planning to improve the coordination of generation, transmission, and demand-side investments, and a transparent ratemaking process. The judicious application of OECD electricity sector experience and skills can support these developments.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Chai, Qimin & Zhang, Xiliang, 2010. "Technologies and policies for the transition to a sustainable energy system in china," Energy, Elsevier, vol. 35(10), pages 3995-4002.
- Xu, Shaofeng & Chen, Wenying, 2006. "The reform of electricity power sector in the PR of China," Energy Policy, Elsevier, vol. 34(16), pages 2455-2465, November.
- Andrews-Speed, Philip & Dow, Stephen, 2000. "Reform of China's electric power industry Challenges facing the government," Energy Policy, Elsevier, vol. 28(5), pages 335-347, May.
- Shealy, Malcolm & Dorian, James P., 2010. "Growing Chinese coal use: Dramatic resource and environmental implications," Energy Policy, Elsevier, vol. 38(5), pages 2116-2122, May.
- Lin, Bo-qiang & Liu, Jiang-hua, 2010. "Estimating coal production peak and trends of coal imports in China," Energy Policy, Elsevier, vol. 38(1), pages 512-519, January.
- Ciwei, Gao & Yang, Li, 2010. "Evolution of China's power dispatch principle and the new energy saving power dispatch policy," Energy Policy, Elsevier, vol. 38(11), pages 7346-7357, November.
- Li, Binsheng & Dorian, James P, 1995. "Change in China's power sector," Energy Policy, Elsevier, vol. 23(7), pages 619-626, July.
- Yang, Ming & Yu, Xin, 1996. "China's power management," Energy Policy, Elsevier, vol. 24(8), pages 735-757, August.
- Ma, Chunbo & He, Lining, 2008. "From state monopoly to renewable portfolio: Restructuring China's electric utility," Energy Policy, Elsevier, vol. 36(5), pages 1697-1711, May.
- Lin, Jiang, 2007. "Energy conservation investments: A comparison between China and the US," Energy Policy, Elsevier, vol. 35(2), pages 916-924, February.
- Mahone, A. & Woo, C.K. & Williams, J. & Horowitz, I., 2009. "Renewable portfolio standards and cost-effective energy-efficiency investment," Energy Policy, Elsevier, vol. 37(3), pages 774-777, March.
- Andrews-Speed, Philip, 2009. "China's ongoing energy efficiency drive: Origins, progress and prospects," Energy Policy, Elsevier, vol. 37(4), pages 1331-1344, April.
- Liu, Yingqi & Kokko, Ari, 2010. "Wind power in China: Policy and development challenges," Energy Policy, Elsevier, vol. 38(10), pages 5520-5529, October.
- Blackman, Allen & Wu, Xun, 1998.
"Foreign Direct Investment in China's Power Sector: Trends, Benefits and Barriers,"
dp-98-50, Resources For the Future.
- Blackman, Allen & Wu, Xun, 1999. "Foreign direct investment in china's power sector: trends, benefits and barriers," Energy Policy, Elsevier, vol. 27(12), pages 695-711, November.
- Liao, Cuiping & Jochem, Eberhard & Zhang, Yi & Farid, Nida R., 2010. "Wind power development and policies in China," Renewable Energy, Elsevier, vol. 35(9), pages 1879-1886.
- Russell Pittman & Vanessa Yanhua Zhang, 2008. "Electricity Restructuring in China: The Elusive Quest for Competition," EAG Discussions Papers 200805, Department of Justice, Antitrust Division.
- Zhou, Nan & Levine, Mark D. & Price, Lynn, 2010. "Overview of current energy-efficiency policies in China," Energy Policy, Elsevier, vol. 38(11), pages 6439-6452, November.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:7:p:4032-4041. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.