IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v47y2015icp954-965.html
   My bibliography  Save this article

Demand side management in China: The context of China’s power industry reform

Author

Listed:
  • Zhou, Kaile
  • Yang, Shanlin

Abstract

The reform of China’s power industry has lasted for decades, while the implementation of demand side management (DSM) in China is still in its infancy. In this paper, we present a comprehensive study of the DSM and Demand Response (DR) programs in China under the context of China’s power industry reform. We first present a brief introduction of the background, including the socio economic status and geographical location of China, the energy policy of China, China’s power industry, the smart grids and microgrid in China, and the reform of China’s power industry. Then, based on the introduction of DSM and the analysis of DSM practices in some countries, we discuss the development status of DSM and the reform of electricity pricing in China. Finally, the main challenges in five aspects for the future development of DSM programs in China are proposed and discussed. These challenges include customer understanding and participation, advanced metering infrastructure (AMI) and information and communication technology (ICT), pricing mechanisms and optimal scheduling, big data analytics based decision support, as well as government regulations and market policies.

Suggested Citation

  • Zhou, Kaile & Yang, Shanlin, 2015. "Demand side management in China: The context of China’s power industry reform," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 954-965.
    • Handle: RePEc:eee:rensus:v:47:y:2015:i:c:p:954-965
    DOI: 10.1016/j.rser.2015.03.036
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032115001896
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2015.03.036?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. Shiu, Alice & Lam, Pun-Lee, 2004. "Electricity consumption and economic growth in China," Energy Policy, Elsevier, vol. 32(1), pages 47-54, January.
    2. Evens Salies and Catherine Waddams Price, 2004. "Charges, Costs and Market Power: the Deregulated UK Electricity Retail Market," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 19-36.
    3. Lutzenhiser, Loren, 1992. "A cultural model of household energy consumption," Energy, Elsevier, vol. 17(1), pages 47-60.
    4. Poudineh, Rahmatallah & Jamasb, Tooraj, 2014. "Distributed generation, storage, demand response and energy efficiency as alternatives to grid capacity enhancement," Energy Policy, Elsevier, vol. 67(C), pages 222-231.
    5. Anda, Martin & Temmen, Justin, 2014. "Smart metering for residential energy efficiency: The use of community based social marketing for behavioural change and smart grid introduction," Renewable Energy, Elsevier, vol. 67(C), pages 119-127.
    6. Cherni, Judith A. & Kentish, Joanna, 2007. "Renewable energy policy and electricity market reforms in China," Energy Policy, Elsevier, vol. 35(7), pages 3616-3629, July.
    7. Stephenson, Janet & Barton, Barry & Carrington, Gerry & Gnoth, Daniel & Lawson, Rob & Thorsnes, Paul, 2010. "Energy cultures: A framework for understanding energy behaviours," Energy Policy, Elsevier, vol. 38(10), pages 6120-6129, October.
    8. Siano, Pierluigi, 2014. "Demand response and smart grids—A survey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 461-478.
    9. Clifford Lynch, 2008. "How do your data grow?," Nature, Nature, vol. 455(7209), pages 28-29, September.
    10. Filippini, Massimo & Pachauri, Shonali, 2004. "Elasticities of electricity demand in urban Indian households," Energy Policy, Elsevier, vol. 32(3), pages 429-436, February.
    11. Zhou, Kai-le & Yang, Shan-lin & Shen, Chao, 2013. "A review of electric load classification in smart grid environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 24(C), pages 103-110.
    12. Filippini, Massimo, 1995. "Swiss residential demand for electricity by time-of-use," Resource and Energy Economics, Elsevier, vol. 17(3), pages 281-290, November.
    13. Zarnikau, Jay W., 2010. "Demand participation in the restructured Electric Reliability Council of Texas market," Energy, Elsevier, vol. 35(4), pages 1536-1543.
    14. Vardakas, John S. & Zorba, Nizar & Verikoukis, Christos V., 2014. "Scheduling policies for two-state smart-home appliances in dynamic electricity pricing environments," Energy, Elsevier, vol. 69(C), pages 455-469.
    15. Bartusch, Cajsa & Wallin, Fredrik & Odlare, Monica & Vassileva, Iana & Wester, Lars, 2011. "Introducing a demand-based electricity distribution tariff in the residential sector: Demand response and customer perception," Energy Policy, Elsevier, vol. 39(9), pages 5008-5025, September.
    16. Herter, Karen & Wayland, Seth, 2010. "Residential response to critical-peak pricing of electricity: California evidence," Energy, Elsevier, vol. 35(4), pages 1561-1567.
    17. Warren, Peter, 2014. "A review of demand-side management policy in the UK," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 941-951.
    18. Soares, Ana & Antunes, Carlos Henggeler & Oliveira, Carlos & Gomes, Álvaro, 2014. "A multi-objective genetic approach to domestic load scheduling in an energy management system," Energy, Elsevier, vol. 77(C), pages 144-152.
    19. Wang, Jianhui & Bloyd, Cary N. & Hu, Zhaoguang & Tan, Zhongfu, 2010. "Demand response in China," Energy, Elsevier, vol. 35(4), pages 1592-1597.
    20. Zhou, Kaile & Yang, Shanlin & Shen, Chao & Ding, Shuai & Sun, Chaoping, 2015. "Energy conservation and emission reduction of China’s electric power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 10-19.
    21. Cheng, Y.S. & Wong, W.K. & Woo, C.K., 2013. "How much have electricity shortages hampered China's GDP growth?," Energy Policy, Elsevier, vol. 55(C), pages 369-373.
    22. Cai, Wenjia & Wang, Can & Wang, Ke & Zhang, Ying & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's electricity sector," Energy Policy, Elsevier, vol. 35(12), pages 6445-6456, December.
    23. 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.
    24. Claire Bergaentzlé & Cédric Clastres & Haikel Khalfallah, 2014. "Demand-side management and European environmental and energy goals: an optimal complementary approach," Post-Print halshs-00928678, HAL.
    25. Massimo Filippini, 1995. "Swiss Residential Demand for Electricity by Time-of-Use: An Application of the Almost Ideal Demand System," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 27-40.
    26. Lijesen, Mark G., 2007. "The real-time price elasticity of electricity," Energy Economics, Elsevier, vol. 29(2), pages 249-258, March.
    27. Zhou, Kaile & Yang, Shanlin & Chen, Zhiqiang & Ding, Shuai, 2014. "Optimal load distribution model of microgrid in the smart grid environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 304-310.
    28. Walawalkar, Rahul & Fernands, Stephen & Thakur, Netra & Chevva, Konda Reddy, 2010. "Evolution and current status of demand response (DR) in electricity markets: Insights from PJM and NYISO," Energy, Elsevier, vol. 35(4), pages 1553-1560.
    29. Kim, Jin-Ho & Shcherbakova, Anastasia, 2011. "Common failures of demand response," Energy, Elsevier, vol. 36(2), pages 873-880.
    30. Kahrl, Fredrich & Williams, Jim & Jianhua, Ding & Junfeng, Hu, 2011. "Challenges to China's transition to a low carbon electricity system," Energy Policy, Elsevier, vol. 39(7), pages 4032-4041, July.
    31. Yu, Yongzhen, 2010. "Policy redesign for solving the financial bottleneck in demand side management (DSM) in China," Energy Policy, Elsevier, vol. 38(10), pages 6101-6110, October.
    32. Yu, Yongzhen, 2012. "How to fit demand side management (DSM) into current Chinese electricity system reform?," Energy Economics, Elsevier, vol. 34(2), pages 549-557.
    33. Koliou, Elta & Eid, Cherrelle & Chaves-Ávila, José Pablo & Hakvoort, Rudi A., 2014. "Demand response in liberalized electricity markets: Analysis of aggregated load participation in the German balancing mechanism," Energy, Elsevier, vol. 71(C), pages 245-254.
    34. Olaniyan, Monisola J. & Evans, Joanne, 2014. "The importance of engaging residential energy customers' hearts and minds," Energy Policy, Elsevier, vol. 69(C), pages 273-284.
    35. 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.
    36. Fadaeenejad, M. & Saberian, A.M. & Fadaee, Mohd. & Radzi, M.A.M. & Hizam, H. & AbKadir, M.Z.A., 2014. "The present and future of smart power grid in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 828-834.
    37. Gyamfi, Samuel & Krumdieck, Susan & Urmee, Tania, 2013. "Residential peak electricity demand response—Highlights of some behavioural issues," Renewable and Sustainable Energy Reviews, Elsevier, vol. 25(C), pages 71-77.
    38. He, Yongxiu & Wang, Bing & Wang, Jianhui & Xiong, Wei & Xia, Tian, 2012. "Residential demand response behavior analysis based on Monte Carlo simulation: The case of Yinchuan in China," Energy, Elsevier, vol. 47(1), pages 230-236.
    39. Torriti, Jacopo & Hassan, Mohamed G. & Leach, Matthew, 2010. "Demand response experience in Europe: Policies, programmes and implementation," Energy, Elsevier, vol. 35(4), pages 1575-1583.
    40. Lujano-Rojas, Juan M. & Monteiro, Cláudio & Dufo-López, Rodolfo & Bernal-Agustín, José L., 2012. "Optimum residential load management strategy for real time pricing (RTP) demand response programs," Energy Policy, Elsevier, vol. 45(C), pages 671-679.
    41. Cappers, Peter & Goldman, Charles & Kathan, David, 2010. "Demand response in U.S. electricity markets: Empirical evidence," Energy, Elsevier, vol. 35(4), pages 1526-1535.
    42. Dupont, B. & De Jonghe, C. & Olmos, L. & Belmans, R., 2014. "Demand response with locational dynamic pricing to support the integration of renewables," Energy Policy, Elsevier, vol. 67(C), pages 344-354.
    43. Bergaentzlé, Claire & Clastres, Cédric & Khalfallah, Haikel, 2014. "Demand-side management and European environmental and energy goals: An optimal complementary approach," Energy Policy, Elsevier, vol. 67(C), pages 858-869.
    44. Wang, Qiang & Qiu, Huan-Ning & Kuang, Yaoqiu, 2009. "Market-driven energy pricing necessary to ensure China's power supply," Energy Policy, Elsevier, vol. 37(7), pages 2498-2504, July.
    45. Ma, Jinlong, 2011. "On-grid electricity tariffs in China: Development, reform and prospects," Energy Policy, Elsevier, vol. 39(5), pages 2633-2645, May.
    46. Strbac, Goran, 2008. "Demand side management: Benefits and challenges," Energy Policy, Elsevier, vol. 36(12), pages 4419-4426, December.
    47. Shen, Bo & Ghatikar, Girish & Lei, Zeng & Li, Jinkai & Wikler, Greg & Martin, Phil, 2014. "The role of regulatory reforms, market changes, and technology development to make demand response a viable resource in meeting energy challenges," Applied Energy, Elsevier, vol. 130(C), pages 814-823.
    48. repec:hal:spmain:info:hdl:2441/7189 is not listed on IDEAS
    49. Li, Li & Tan, Zhongfu & Wang, Jianhui & Xu, Jun & Cai, Chengkai & Hou, Yong, 2011. "Energy conservation and emission reduction policies for the electric power industry in China," Energy Policy, Elsevier, vol. 39(6), pages 3669-3679, June.
    50. Faruqui, A. & Hajos, A. & Hledik, R.M. & Newell, S.A., 2010. "Fostering economic demand response in the Midwest ISO," Energy, Elsevier, vol. 35(4), pages 1544-1552.
    51. Ngan, H.W., 2010. "Electricity regulation and electricity market reforms in China," Energy Policy, Elsevier, vol. 38(5), pages 2142-2148, May.
    52. repec:hal:wpspec:info:hdl:2441/7189 is not listed on IDEAS
    53. Paulus, Moritz & Borggrefe, Frieder, 2011. "The potential of demand-side management in energy-intensive industries for electricity markets in Germany," Applied Energy, Elsevier, vol. 88(2), pages 432-441, February.
    54. Wang, Ke & Wang, Can & Lu, Xuedu & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's iron and steel industry," Energy Policy, Elsevier, vol. 35(4), pages 2320-2335, April.
    55. Owens, Susan & Driffill, Louise, 2008. "How to change attitudes and behaviours in the context of energy," Energy Policy, Elsevier, vol. 36(12), pages 4412-4418, December.
    56. Wang, Qiang & Chen, Xi, 2012. "China's electricity market-oriented reform: From an absolute to a relative monopoly," Energy Policy, Elsevier, vol. 51(C), pages 143-148.
    57. Bradley, Peter & Leach, Matthew & Torriti, Jacopo, 2013. "A review of the costs and benefits of demand response for electricity in the UK," Energy Policy, Elsevier, vol. 52(C), pages 312-327.
    58. Zhang, Na & Lior, Noam & Jin, Hongguang, 2011. "The energy situation and its sustainable development strategy in China," Energy, Elsevier, vol. 36(6), pages 3639-3649.
    Full references (including those not matched with items on IDEAS)

    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. Guo, Peiyang & Li, Victor O.K. & Lam, Jacqueline C.K., 2017. "Smart demand response in China: Challenges and drivers," Energy Policy, Elsevier, vol. 107(C), pages 1-10.
    2. Alasseri, Rajeev & Tripathi, Ashish & Joji Rao, T. & Sreekanth, K.J., 2017. "A review on implementation strategies for demand side management (DSM) in Kuwait through incentive-based demand response programs," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 617-635.
    3. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    4. Haider, Haider Tarish & See, Ong Hang & Elmenreich, Wilfried, 2016. "Residential demand response scheme based on adaptive consumption level pricing," Energy, Elsevier, vol. 113(C), pages 301-308.
    5. Märkle-Huß, Joscha & Feuerriegel, Stefan & Neumann, Dirk, 2018. "Large-scale demand response and its implications for spot prices, load and policies: Insights from the German-Austrian electricity market," Applied Energy, Elsevier, vol. 210(C), pages 1290-1298.
    6. Cortés-Arcos, Tomás & Bernal-Agustín, José L. & Dufo-López, Rodolfo & Lujano-Rojas, Juan M. & Contreras, Javier, 2017. "Multi-objective demand response to real-time prices (RTP) using a task scheduling methodology," Energy, Elsevier, vol. 138(C), pages 19-31.
    7. Liu, Yingqi, 2017. "Demand response and energy efficiency in the capacity resource procurement: Case studies of forward capacity markets in ISO New England, PJM and Great Britain," Energy Policy, Elsevier, vol. 100(C), pages 271-282.
    8. Wang, Yong & Li, Lin, 2015. "Time-of-use electricity pricing for industrial customers: A survey of U.S. utilities," Applied Energy, Elsevier, vol. 149(C), pages 89-103.
    9. Haider, Haider Tarish & See, Ong Hang & Elmenreich, Wilfried, 2016. "A review of residential demand response of smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 166-178.
    10. Yang, Changhui & Meng, Chen & Zhou, Kaile, 2018. "Residential electricity pricing in China: The context of price-based demand response," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2870-2878.
    11. Leinauer, Christina & Schott, Paul & Fridgen, Gilbert & Keller, Robert & Ollig, Philipp & Weibelzahl, Martin, 2022. "Obstacles to demand response: Why industrial companies do not adapt their power consumption to volatile power generation," Energy Policy, Elsevier, vol. 165(C).
    12. Feuerriegel, Stefan & Neumann, Dirk, 2016. "Integration scenarios of Demand Response into electricity markets: Load shifting, financial savings and policy implications," Energy Policy, Elsevier, vol. 96(C), pages 231-240.
    13. Meyabadi, A. Fattahi & Deihimi, M.H., 2017. "A review of demand-side management: Reconsidering theoretical framework," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 367-379.
    14. Li, Weilin & Xu, Peng & Lu, Xing & Wang, Huilong & Pang, Zhihong, 2016. "Electricity demand response in China: Status, feasible market schemes and pilots," Energy, Elsevier, vol. 114(C), pages 981-994.
    15. Khan, Agha Salman M. & Verzijlbergh, Remco A. & Sakinci, Ozgur Can & De Vries, Laurens J., 2018. "How do demand response and electrical energy storage affect (the need for) a capacity market?," Applied Energy, Elsevier, vol. 214(C), pages 39-62.
    16. Feuerriegel, Stefan & Neumann, Dirk, 2014. "Measuring the financial impact of demand response for electricity retailers," Energy Policy, Elsevier, vol. 65(C), pages 359-368.
    17. Eid, Cherrelle & Koliou, Elta & Valles, Mercedes & Reneses, Javier & Hakvoort, Rudi, 2016. "Time-based pricing and electricity demand response: Existing barriers and next steps," Utilities Policy, Elsevier, vol. 40(C), pages 15-25.
    18. Tahir, Muhammad Faizan & Chen, Haoyong & Khan, Asad & Javed, Muhammad Sufyan & Cheema, Khalid Mehmood & Laraik, Noman Ali, 2020. "Significance of demand response in light of current pilot projects in China and devising a problem solution for future advancements," Technology in Society, Elsevier, vol. 63(C).
    19. Zhou, Kaile & Yang, Shanlin & Shen, Chao & Ding, Shuai & Sun, Chaoping, 2015. "Energy conservation and emission reduction of China’s electric power industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 10-19.
    20. Good, Nicholas & Ellis, Keith A. & Mancarella, Pierluigi, 2017. "Review and classification of barriers and enablers of demand response in the smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 72(C), pages 57-72.

    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:rensus:v:47:y:2015:i:c:p:954-965. 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: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    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.