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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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    References listed on IDEAS

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    Cited by:

    1. 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).
    2. Cao, Xun & Kleit, Andrew & Liu, Chuyu, 2016. "Why invest in wind energy? Career incentives and Chinese renewable energy politics," Energy Policy, Elsevier, vol. 99(C), pages 120-131.
    3. 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.
    4. Zhao, Xiaoli & Li, Shujie & Zhang, Sufang & Yang, Rui & Liu, Suwei, 2016. "The effectiveness of China's wind power policy: An empirical analysis," Energy Policy, Elsevier, vol. 95(C), pages 269-279.
    5. repec:eee:eneeco:v:67:y:2017:i:c:p:278-286 is not listed on IDEAS
    6. Xiaogang Zhang & Dong Wang & Yuanhao Liu & Hongtao Yi, 2016. "Wind Power Development in China: An Assessment of Provincial Policies," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-12, July.
    7. 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.
    8. 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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    Keywords

    Wind power; Vested interests; China;

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