Curtailment of renewable energy in Northwest China and market-based solutions

Shiyu Liu, Zhaohong Bie, Jiang Lin and Xifan Wang

Energy Policy, 2018, vol. 123, issue C, 494-502

Abstract: In 2016, solar and wind energy production were greatly curtailed in China, especially in its northwestern region. This paper identifies administrative factors and market barriers as the main causes of renewable curtailment. In 2017, the Northwest Power Grid (NWPG) successfully implemented a variety of approaches to reduce wind and solar curtailment. In this paper, we analyze the change in power generation, expansion of renewable energy delivery, and electricity-replacement projects across provinces that occurred in 2017. While acknowledging the practical results of the NWPG's efforts, we identify challenges that the northwest still faces in integrating renewable energy. We argue that trans-regional administrative barriers are preventing the effective utilization of renewable energy nationwide. To address those barriers, we explore market-based mechanisms for promoting the integration of large-scale renewable energy. In addition to long-term contracts for renewable energy across provinces, both spot-market and the ancillary service market would facilitate the uptake of renewable energy. In addition, price signals should be used to guide peak shaving. Market mechanisms will be insightful to dissolve barriers and enhance utilization of renewable energy throughout the country.

Keywords: Renewable energy curtailment; Trans-regional barriers; Market-based mechanisms; Spot market; Ancillary service market (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421518306128
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:123:y:2018:i:c:p:494-502

DOI: 10.1016/j.enpol.2018.09.007

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().