Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China
China has made significant progress in developing renewable energy, but challenges in integrating variable sources like wind, solar, and hydro power persist. Existing research has a regional focus and lacks a comprehensive understanding of integration challenges in specific regions. Moreover, resear...
| Main Authors: | , , , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
MDPI AG
2023-09-01
|
| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/16/18/6573 |
| _version_ | 1797580417864302592 |
|---|---|
| author | Shuangquan Liu Yanxuan Huang Yue Wang Qizhuan Shao Han Zhou Jinwen Wang Cheng Chen |
| author_facet | Shuangquan Liu Yanxuan Huang Yue Wang Qizhuan Shao Han Zhou Jinwen Wang Cheng Chen |
| author_sort | Shuangquan Liu |
| collection | DOAJ |
| description | China has made significant progress in developing renewable energy, but challenges in integrating variable sources like wind, solar, and hydro power persist. Existing research has a regional focus and lacks a comprehensive understanding of integration challenges in specific regions. Moreover, research concentrates on individual energy types rather than multiple sources. Addressing these challenges requires a deeper analysis of market rules, incentives, and mechanisms for integrating numerous renewable energy types. The existing research also overlooks crucial aspects like energy consumption, grid planning, and power market mechanisms. To promote renewable energy integration effectively, policymakers must address these interconnected factors through comprehensive investigations and research efforts. This study proposes tailored solutions to encourage integration in China based on international experiences, such as Brazil’s contract markets and electricity redistribution mechanism, the Nordic spot market, and California’s negative pricing mechanism. The strategies derived from global practices for China’s renewable energy integration include diverse trading mechanisms, expanded contract markets, optimized local consumption, fortified grid infrastructure, and improved market mechanisms. |
| first_indexed | 2024-03-10T22:49:43Z |
| format | Article |
| id | doaj.art-de38388dd28a4f0b8b6157623e37f37d |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-10T22:49:43Z |
| publishDate | 2023-09-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-de38388dd28a4f0b8b6157623e37f37d2023-11-19T10:27:05ZengMDPI AGEnergies1996-10732023-09-011618657310.3390/en16186573Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in ChinaShuangquan Liu0Yanxuan Huang1Yue Wang2Qizhuan Shao3Han Zhou4Jinwen Wang5Cheng Chen6Yunnan Power Grid Co., Ltd., Kunming 650011, ChinaSchool of Civil and Hydraulic Engineering, Huazhong University of Science and Technology, Wuhan 430074, ChinaSchool of Civil and Hydraulic Engineering, Huazhong University of Science and Technology, Wuhan 430074, ChinaYunnan Power Grid Co., Ltd., Kunming 650011, ChinaYunnan Power Grid Co., Ltd., Kunming 650011, ChinaSchool of Civil and Hydraulic Engineering, Huazhong University of Science and Technology, Wuhan 430074, ChinaFaculty of Electric Engineering, Kunming University of Science and Technology, Kunming 650504, ChinaChina has made significant progress in developing renewable energy, but challenges in integrating variable sources like wind, solar, and hydro power persist. Existing research has a regional focus and lacks a comprehensive understanding of integration challenges in specific regions. Moreover, research concentrates on individual energy types rather than multiple sources. Addressing these challenges requires a deeper analysis of market rules, incentives, and mechanisms for integrating numerous renewable energy types. The existing research also overlooks crucial aspects like energy consumption, grid planning, and power market mechanisms. To promote renewable energy integration effectively, policymakers must address these interconnected factors through comprehensive investigations and research efforts. This study proposes tailored solutions to encourage integration in China based on international experiences, such as Brazil’s contract markets and electricity redistribution mechanism, the Nordic spot market, and California’s negative pricing mechanism. The strategies derived from global practices for China’s renewable energy integration include diverse trading mechanisms, expanded contract markets, optimized local consumption, fortified grid infrastructure, and improved market mechanisms.https://www.mdpi.com/1996-1073/16/18/6573renewable energy consumptionelectricity marketmarket mechanismspot market |
| spellingShingle | Shuangquan Liu Yanxuan Huang Yue Wang Qizhuan Shao Han Zhou Jinwen Wang Cheng Chen Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China Energies renewable energy consumption electricity market market mechanism spot market |
| title | Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China |
| title_full | Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China |
| title_fullStr | Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China |
| title_full_unstemmed | Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China |
| title_short | Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China |
| title_sort | incentive mechanisms to integrate more renewable energy in electricity markets in china |
| topic | renewable energy consumption electricity market market mechanism spot market |
| url | https://www.mdpi.com/1996-1073/16/18/6573 |
| work_keys_str_mv | AT shuangquanliu incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina AT yanxuanhuang incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina AT yuewang incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina AT qizhuanshao incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina AT hanzhou incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina AT jinwenwang incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina AT chengchen incentivemechanismstointegratemorerenewableenergyinelectricitymarketsinchina |