IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i10p4382-d1654043.html

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
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/10/4382/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/10/4382/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Guo, Shi-man & Feng, Tian-tian, 2024. "Blockchain-based smart trading mechanism for renewable energy power consumption vouchers and green certificates: Platform design and simulation," Applied Energy, Elsevier, vol. 369(C).
    2. Jamali, Mohammad-Bagher & Rasti-Barzoki, Morteza, 2022. "A game-theoretic approach for examining government support strategies and licensing contracts in an electricity supply chain with technology spillover: A case study of Iran," Energy, Elsevier, vol. 242(C).
    3. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    4. Kilinc-Ata, Nurcan & Proskuryakova, Liliana N., 2024. "The contribution of energy policies to green energy transition in the Asia-Pacific region," Renewable Energy, Elsevier, vol. 237(PC).
    5. Yuan, Jiahang & Wang, Li & Li, Yun, 2024. "Carbon emission reduction dynamic decision-making in the electricity supply chain with different carbon emission allowance principles," Energy, Elsevier, vol. 312(C).
    6. Lin, Boqiang & Xie, Yongjing, 2024. "How feed-in-tariff subsidies affect renewable energy investments in China? New evidence from firm-level data," Energy, Elsevier, vol. 294(C).
    7. Li, Jialin & Hu, Yu & Chi, Yuanying & Liu, Dunnan & Yang, Shuxia & Gao, Zhiyuan & Chen, Yuetong, 2024. "Analysis on the synergy between markets of electricity, carbon, and tradable green certificates in China," Energy, Elsevier, vol. 302(C).
    8. Meng, Xin & Yu, Yanni, 2023. "Can renewable energy portfolio standards and carbon tax policies promote carbon emission reduction in China's power industry?," Energy Policy, Elsevier, vol. 174(C).
    9. Karakosta, Ourania & Petropoulou, Dimitra, 2022. "The EU electricity market: Renewables targets, Tradable Green Certificates and electricity trade," Energy Economics, Elsevier, vol. 111(C).
    10. Mbanyele, William & Huang, Hongyun & Muchenje, Linda T. & Zhao, Jun, 2024. "How does climate regulatory risk influence labor employment decisions? Evidence from a quasi-natural experiment," China Economic Review, Elsevier, vol. 87(C).
    11. Ji, Chun-Yi & Tan, Zi-Kai & Chen, Bin-Jia & Zhou, Ding-Ce & Qian, Wu-Yong, 2024. "The impact of environmental policies on renewable energy investment decisions in the power supply chain," Energy Policy, Elsevier, vol. 186(C).
    12. Liu, Ying & Huang, Hongyun & Mbanyele, William & Wei, Zhixing & Li, Xin, 2025. "How does green industrial policy affect corporate green innovation? Evidence from the green factory identification in China," Energy Economics, Elsevier, vol. 141(C).
    13. Dimitriadis, Christos N. & Tsimopoulos, Evangelos G. & Georgiadis, Michael C., 2024. "Co-optimized trading strategy of a renewable energy aggregator in electricity and green certificates markets," Renewable Energy, Elsevier, vol. 236(C).
    14. Zhen, Juntao & Zhao, Laijun & Yi, Hongru & Cheng, Youfeng & Wang, Ke & Hu, Haisheng, 2024. "Cross-provincial collaborative transaction that considers both the green electricity and the green certificate markets under a renewable portfolio standard policy," Applied Energy, Elsevier, vol. 372(C).
    15. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Song, Malin & Wang, Yuzhang, 2022. "Climbing the quality ladder of green innovation: Does green finance matter?," Technological Forecasting and Social Change, Elsevier, vol. 184(C).
    16. Huang, Hongyun & Mbanyele, William & Wang, Fengrong & Zhang, Chenxi & Zhao, Xin, 2023. "Nudging corporate environmental responsibility through green finance? Quasi-natural experimental evidence from China," Journal of Business Research, Elsevier, vol. 167(C).
    17. Liu, Wei-Jen & Chiu, Wei-Yu & Hua, Weiqi, 2024. "Blockchain-enabled renewable energy certificate trading: A secure and privacy-preserving approach," Energy, Elsevier, vol. 290(C).
    18. Yu, Xianyu & Ge, Shengxian & Zhou, Dequn & Wang, Qunwei & Chang, Ching-Ter & Sang, Xiuzhi, 2022. "Whether feed-in tariff can be effectively replaced or not? An integrated analysis of renewable portfolio standards and green certificate trading," Energy, Elsevier, vol. 245(C).
    19. Yang, Zhaofu & Liu, Hong & Yuan, Yongna & Li, Muhua, 2024. "Can renewable energy development facilitate China's sustainable energy transition? Perspective from Energy Trilemma," Energy, Elsevier, vol. 304(C).
    20. Nazari, AmirAli & Keypour, Reza & Amjady, Nima, 2021. "Joint investment of community energy storage systems in distribution networks using modified Nash bargaining theory," Applied Energy, Elsevier, vol. 301(C).
    21. Aylin Erdoğdu & Faruk Dayi & Ahmet Yanik & Ferah Yildiz & Farshad Ganji, 2025. "Innovative Solutions for Combating Climate Change: Advancing Sustainable Energy and Consumption Practices for a Greener Future," Sustainability, MDPI, vol. 17(6), pages 1-39, March.
    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. Lei, Yifei & Botero, Hernan & Zhang, Riqi & Zhang, Junhao, 2025. "The impact of different environmental premium mechanisms on investment decisions in photovoltaic power generation projects: evidence from China," Energy, Elsevier, vol. 336(C).
    2. Wang, Chizhong & Chen, Heng & Wang, Zhengwei & Gao, Yue & Zhang, Guoqiang, 2025. "Economic assessment and grid parity analysis of photovoltaic power generation considering tradable green certificate," Applied Energy, Elsevier, vol. 382(C).
    3. Sun, Yaling & Che, Yanbo & Guo, Xiao & Zhang, Shangyuan, 2025. "Optimal modelling and analysis of DG-GC joint multilateral transaction in energy blockchain environment: from the REP perspective," Energy, Elsevier, vol. 335(C).
    4. Li, Zhenjie & Han, Jie & Sun, Xiaoyan & Cheng, Lihan, 2025. "Digital transformation and accounting information quality: The role of environmental uncertainty in the era of digital," International Review of Economics & Finance, Elsevier, vol. 103(C).
    5. Zhao, Xingqi & Ke, Xiaojun & Jiang, Songyu, 2024. "Spatial impact of green finance reform pilot zones on environmental efficiency: A pathway to mitigating China's energy trilemma," Energy, Elsevier, vol. 312(C).
    6. Mbanyele, William & Huang, Hongyun & Muchenje, Linda T. & Zhao, Jun, 2024. "How does climate regulatory risk influence labor employment decisions? Evidence from a quasi-natural experiment," China Economic Review, Elsevier, vol. 87(C).
    7. Guo, Pu-hao & Wang, Xiang-qian & Meng, Xiang-rui, 2024. "Evolutionary game study and empirical analysis of the adoption of green coal mining technology: A case study of ITMDB," Energy, Elsevier, vol. 313(C).
    8. Du, Kang & Fan, Ruguo & Wang, Dongxue, 2025. "Coupling effects of RPS and CET policies on the low-carbon transformation of the Chinese power industry: A combined perspective based on tripartite evolutionary game and system dynamics," Energy, Elsevier, vol. 334(C).
    9. Liu, Ying & Huang, Hongyun & Mbanyele, William & Wei, Zhixing & Li, Xin, 2025. "How does green industrial policy affect corporate green innovation? Evidence from the green factory identification in China," Energy Economics, Elsevier, vol. 141(C).
    10. Xinhong Wu & Hao Huang & Bin Guo & Lifei Song & Yongwen Yang & Qifen Li & Fanyue Qian, 2025. "A Study on the Price Transmission Mechanism of Environmental Benefits for Green Electricity in the Carbon Market and Green Certificate Markets: A Case Study of the East China Power Grid," Energies, MDPI, vol. 18(9), pages 1-19, April.
    11. Ying, Zhou & Xuefeng, Jia & Hui, Wang & Junling, Huang, 2025. "Incentive mechanism design for mandatory green certificate trading in China: A collective action perspective," Energy, Elsevier, vol. 319(C).
    12. Saqib Munir & Muhammad Khalid Anser & Aqil Waqar Khan & Md Shabbir Alam & Alamzeb Aamir & Khalid Zaman, 2025. "Powering the transition: geoscientific insights and policy levers for global renewable energy investment, pricing reforms and decarbonization pathways towards SDG 7 and SDG 13," Future Business Journal, Springer, vol. 11(1), pages 1-20, December.
    13. Rydehell, Hanna & Lantz, Björn & Mignon, Ingrid & Lindahl, Johan, 2024. "The impact of solar PV subsidies on investment over time - the case of Sweden," Energy Economics, Elsevier, vol. 133(C).
    14. Ying Liu & Hongyun Huang & William Mbanyele & Fengrong Wang & Huiling Liu, 2024. "Does the issuance of green bonds nudge environmental responsibility engagements? Evidence from the Chinese green bond market," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-42, December.
    15. Chi, Guodong & Liu, Yuanyuan & Fang, Hong & Xiu, Yuanyuan, 2025. "Tapping the potential of green finance: Can energy efficiency credit drive traditional industries to green? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 1834-1853.
    16. Cui, Xiaona & Mohd Said, Ridzwana & Abdul Rahim, Norhuda & Ni, Mengjiao, 2024. "Can green finance Lead to green investment? Evidence from heavily polluting industries," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    17. Zhang, Weisi & Mao, Qingsong & Pan, Xia & Luo, Rui & Liang, Ling, 2025. "Two-stage hybrid electricity market trading strategy optimization with renewable electricity under cap-and-trade policy," Energy Economics, Elsevier, vol. 150(C).
    18. Stamatios K. Chrysikopoulos & Panos T. Chountalas & Dimitrios A. Georgakellos & Athanasios G. Lagodimos, 2024. "Green Certificates Research: Bibliometric Assessment of Current State and Future Directions," Sustainability, MDPI, vol. 16(3), pages 1-45, January.
    19. Cui, Linyu & Wang, Bangjun & Wang, Yue, 2026. "Reform of the new power system: A game analysis of power marketization from the perspective of carbon-green certificate coupling," Energy Policy, Elsevier, vol. 209(PA).
    20. Shining Yang & Feng Mi, 2025. "Renewable Portfolio Standards, Carbon Emissions Trading and China Certified Emission Reduction: The Role of Market Mechanisms in Optimizing China’s Power Generation Structure," Energies, MDPI, vol. 18(4), pages 1-23, February.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jsusta:v:17:y:2025:i:10:p:4382-:d:1654043. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.