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Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard

Author

Listed:
  • Fugui Dong

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Lei Shi

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Xiaohui Ding

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Yuan Li

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Yongpeng Shi

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

Abstract

China officially implemented the renewable portfolio standard (RPS) on 1 January 2019, and it remains uncertain as to whether this can effectively solve the problem of renewable energy consumption in China and ease the pressure of government subsidies. In order to study the impact of this policy on China’s renewable energy power generation and explore RPS policy that is more suitable for the characteristics of China’s renewable energy, we first develop a revenue function model based on the just released RPS policy to explore the effectiveness of the policy, the feasibility conditions for successful implementation, and the problems that may be encountered during the implementation process. Then, we propose policy recommendations based on the possible problems of the current policy and design an “incremental electricity price” supplementary policy to improve the possibility of successful implementation of the RPS policy. Finally, an evolutionary game model is established to simulate and verify the possibility of successful implementation of the supplementary policy. The main research results are: (1) the essence of the current RPS policy is the comprehensive implementation policy of the RPS and feed-in-tariff (FiT); (2) because of the characteristics of China’s energy structure, the implementation of this policy reform is more resistant; (3) the quantitative research on the revenue function model shows that the current transaction price of the green certificate market is very low, which is not conducive to alleviating the state’s subsidy pressure on renewable energy power generation; and (4) analysis of empirical data shows that the successful implementation of the “incremental electricity price” policy relies on the initial strategies of grid companies and users.

Suggested Citation

  • Fugui Dong & Lei Shi & Xiaohui Ding & Yuan Li & Yongpeng Shi, 2019. "Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard," Energies, MDPI, vol. 12(11), pages 1-23, June.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:11:p:2147-:d:237279
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    References listed on IDEAS

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    Cited by:

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    2. Wenxiao Chu & Francesco Calise & Neven Duić & Poul Alberg Østergaard & Maria Vicidomini & Qiuwang Wang, 2020. "Recent Advances in Technology, Strategy and Application of Sustainable Energy Systems," Energies, MDPI, vol. 13(19), pages 1-29, October.
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    8. Shangjia Wang & Wenhui Zhao & Shuwen Fan & Lei Xue & Zijuan Huang & Zhigang Liu, 2022. "Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model," Energies, MDPI, vol. 15(11), pages 1-18, May.
    9. Chai, Song & Liu, Qiyun & Yang, Jin, 2023. "Renewable power generation policies in China: Policy instrument choices and influencing factors from the central and local government perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    10. Feng Cui & Chuanfeng Han & Pihui Liu & Minmin Teng, 2022. "Green Credit of China’s Coal Power Enterprises during Green Transformation: A Tripartite Evolutionary Game Analysis," Energies, MDPI, vol. 15(16), pages 1-20, August.
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