What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market?
In order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, China set the provincial weight of responsibility for renewable energy power consumption and established a renewable energy power absorption guarantee mechanism in 2019. As a market incentive policy, it...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-11-01
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| Series: | Energies |
| Subjects: | |
| Online Access: | https://www.mdpi.com/1996-1073/16/21/7434 |
| _version_ | 1797631964372533248 |
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| author | Yan Lu Xuan Liu Hongjian Li Haoran Wang Jiajie Kong Cheng Zhong Mingli Cui Yan Li Xiaoqi Sun Jiadong Xuan Tiantian Feng |
| author_facet | Yan Lu Xuan Liu Hongjian Li Haoran Wang Jiajie Kong Cheng Zhong Mingli Cui Yan Li Xiaoqi Sun Jiadong Xuan Tiantian Feng |
| author_sort | Yan Lu |
| collection | DOAJ |
| description | In order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, China set the provincial weight of responsibility for renewable energy power consumption and established a renewable energy power absorption guarantee mechanism in 2019. As a market incentive policy, it has enduring effect on the low-carbon transformation of the power industry. Firstly, the operation mechanism of the renewable energy consumption guarantee mechanism is analyzed. The general framework, core elements and supporting measures are clarified. Secondly, a stock-flow diagram is constructed based on the system dynamics method. It contains the green electricity market sub-module, the green-certificate market sub-module and the excess power absorption market sub-module. Finally, multiple scenarios are set up to simulate the impact of the green-certificate market and excess power absorption market improvements on the installed capacity and tariff of China’s green power market. The renewable energy guarantee mechanism is an effective means to promote the consumption of green electricity in China. In addition, in the short term the cost of electricity for users has increased, but in the long term the cost of electricity shows a fluctuating downward trend. This study provides theoretical references for the formulation of clean and low-carbon policy objectives in the power industry and the optimization of market mechanisms. |
| first_indexed | 2024-03-11T11:31:10Z |
| format | Article |
| id | doaj.art-e89131b0deaa43d08b8361e5c2a7b49e |
| institution | Directory Open Access Journal |
| issn | 1996-1073 |
| language | English |
| last_indexed | 2024-03-11T11:31:10Z |
| publishDate | 2023-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Energies |
| spelling | doaj.art-e89131b0deaa43d08b8361e5c2a7b49e2023-11-10T15:02:32ZengMDPI AGEnergies1996-10732023-11-011621743410.3390/en16217434What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market?Yan Lu0Xuan Liu1Hongjian Li2Haoran Wang3Jiajie Kong4Cheng Zhong5Mingli Cui6Yan Li7Xiaoqi Sun8Jiadong Xuan9Tiantian Feng10State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, ChinaState Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, ChinaState Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaSchool of Economy and Management, China University of Geosciences Beijing, Beijing 100083, ChinaIn order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, China set the provincial weight of responsibility for renewable energy power consumption and established a renewable energy power absorption guarantee mechanism in 2019. As a market incentive policy, it has enduring effect on the low-carbon transformation of the power industry. Firstly, the operation mechanism of the renewable energy consumption guarantee mechanism is analyzed. The general framework, core elements and supporting measures are clarified. Secondly, a stock-flow diagram is constructed based on the system dynamics method. It contains the green electricity market sub-module, the green-certificate market sub-module and the excess power absorption market sub-module. Finally, multiple scenarios are set up to simulate the impact of the green-certificate market and excess power absorption market improvements on the installed capacity and tariff of China’s green power market. The renewable energy guarantee mechanism is an effective means to promote the consumption of green electricity in China. In addition, in the short term the cost of electricity for users has increased, but in the long term the cost of electricity shows a fluctuating downward trend. This study provides theoretical references for the formulation of clean and low-carbon policy objectives in the power industry and the optimization of market mechanisms.https://www.mdpi.com/1996-1073/16/21/7434electricity marketrenewable energy consumptionmarket-operation-mechanism analysissystem dynamics |
| spellingShingle | Yan Lu Xuan Liu Hongjian Li Haoran Wang Jiajie Kong Cheng Zhong Mingli Cui Yan Li Xiaoqi Sun Jiadong Xuan Tiantian Feng What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market? Energies electricity market renewable energy consumption market-operation-mechanism analysis system dynamics |
| title | What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market? |
| title_full | What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market? |
| title_fullStr | What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market? |
| title_full_unstemmed | What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market? |
| title_short | What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market? |
| title_sort | what is the impact of the renewable energy power absorption guarantee mechanism on china s green electricity market |
| topic | electricity market renewable energy consumption market-operation-mechanism analysis system dynamics |
| url | https://www.mdpi.com/1996-1073/16/21/7434 |
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