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The Impact of Environmental Policies on Renewable Energy Storage Decisions in the Power Supply Chain

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  • Chunyi Ji

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Xinyue Wang

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Wei Zhao

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Xuan Wang

    (School of Business, Jiangnan University, Wuxi 214122, China)

  • Wuyong Qian

    (School of Business, Jiangnan University, Wuxi 214122, China)

Abstract

Energy storage is a proficient means of enhancing power supply reliability and facilitating the use of renewable energy. To study the impact of policies on energy storage decisions in the power supply chain, this paper constructs an electricity supply chain and compares the equilibrium results under four scenarios based on the Stackelberg game theory. The research reveals that both discharge subsidy and investment subsidy play a beneficial role in improving the level of energy storage technology, regardless of whether power producers choose to invest in or lease energy storage equipment. Furthermore, when combined with the implementation of a renewable portfolio standard, these subsidies can have beneficial outcomes. During the early stages of development in the energy storage industry, investment subsidy proves more advantageous for enhancing both technology levels and electricity demand. Conversely, at later stages of industry development, discharge subsidies become increasingly advantageous for enhancing technological advancements and fulfilling electricity demand. Furthermore, implementing a strategy in which power generators invest in energy storage can enhance their profitability while concurrently advancing technological standards and satisfying electricity demand.

Suggested Citation

  • Chunyi Ji & Xinyue Wang & Wei Zhao & Xuan Wang & Wuyong Qian, 2025. "The Impact of Environmental Policies on Renewable Energy Storage Decisions in the Power Supply Chain," Energies, MDPI, vol. 18(9), pages 1-24, April.
    • Handle: RePEc:gam:jeners:v:18:y:2025:i:9:p:2152-:d:1639974
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    References listed on IDEAS

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