Chinese power-grid financial capacity based on transmission and distribution tariff policy: A system dynamics approach

Yongli Wang, Fuli Zhang, Yuanyuan Zhang, Xiaohai Wang, Lisha Fan, Fuhao Song, Yuze Ma and Shuo Wang

Utilities Policy, 2019, vol. 60, issue C, -

Abstract: With reforms, the Chinese power grid is transitioning to a more dynamic and competitive power market. Transmission and distribution tariff policies have changed the profit model and influence the financial capacity of the Chinese power-grid companies. This study analyzes the specific content of the reform, the calculation related to each component of power-grid financial capacity, and the interaction and feedback characteristics among the components. On this foundation, we establish a financial capacity model using the system dynamics theory. Taking a power-grid company as a case to undertake empirical and sensitivity analyses, we put forward management strategies and policy recommendations.

Keywords: Transmission and distribution tariff reform; Power-grid companies; Financial capacity; System dynamics (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:60:y:2019:i:c:6

DOI: 10.1016/j.jup.2019.100941

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