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Research on Strategy Selection of Power Supply Chain Under Renewable Energy Consumption and Energy Storage Cost Sharing

Author

Listed:
  • Di Wang

    (Center of Energy Economy Study, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China)

  • Qiyue Wu

    (Center of Energy Economy Study, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China)

  • Junyan Guo

    (Center of Energy Economy Study, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China)

Abstract

The development of renewable energy in the power industry plays a crucial role in mitigating environmental degradation. The renewable energy (RE) consumption system and green certificate trading market are significant in promoting renewable energy adoption, while energy storage technology has advanced substantially to address power supply instability. Against this backdrop, this study employs a Stackelberg game approach to construct a power supply chain model, with generation companies as leaders and retail companies as followers, examining energy storage cost-sharing mechanisms and retailers’ renewable energy investment decisions. Key findings include the following: (1) a higher RE consumption ratio reduces wholesale prices, power stability, electricity demand, and retailers’ renewable investment; (2) when the energy storage cost coefficient exceeds a threshold, higher green certificate prices increase retailers’ renewable investment; (3) beyond the threshold, a higher RE consumption ratio incentivizes retailers to invest in renewables; (4) proportional cost sharing enhances renewable investment by approximately 15% and maximizes supply chain profits. The study provides decision-making insights for power companies and policy references for governments.

Suggested Citation

  • Di Wang & Qiyue Wu & Junyan Guo, 2025. "Research on Strategy Selection of Power Supply Chain Under Renewable Energy Consumption and Energy Storage Cost Sharing," Sustainability, MDPI, vol. 17(10), pages 1-28, May.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:10:p:4382-:d:1654043
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