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Chinese power-grid financial capacity based on transmission and distribution tariff policy: A system dynamics approach

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  • Wang, Yongli
  • Zhang, Fuli
  • Zhang, Yuanyuan
  • Wang, Xiaohai
  • Fan, Lisha
  • Song, Fuhao
  • Ma, Yuze
  • Wang, Shuo

Abstract

With reforms, the Chinese power grid is transitioning to a more dynamic and competitive power market. Transmission and distribution tariff policies have changed the profit model and influence the financial capacity of the Chinese power-grid companies. This study analyzes the specific content of the reform, the calculation related to each component of power-grid financial capacity, and the interaction and feedback characteristics among the components. On this foundation, we establish a financial capacity model using the system dynamics theory. Taking a power-grid company as a case to undertake empirical and sensitivity analyses, we put forward management strategies and policy recommendations.

Suggested Citation

  • Wang, Yongli & Zhang, Fuli & Zhang, Yuanyuan & Wang, Xiaohai & Fan, Lisha & Song, Fuhao & Ma, Yuze & Wang, Shuo, 2019. "Chinese power-grid financial capacity based on transmission and distribution tariff policy: A system dynamics approach," Utilities Policy, Elsevier, vol. 60(C), pages 1-1.
    • Handle: RePEc:eee:juipol:v:60:y:2019:i:c:6
    DOI: 10.1016/j.jup.2019.100941
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    References listed on IDEAS

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