Development policy for non-grid-connected wind power in China: An analysis based on institutional change

Yong Fang, Jing Li and Mingming Wang

Energy Policy, 2012, vol. 45, issue C, 350-358

Abstract: Government policy continues to play a crucial role in the development of wind power industry in China. The 2005 “Renewable Energy Law” and related policies have driven the rapid increase in wind power installed capacity in China over the past half-decade, with capacity doubling annually since 2005. However, a large number of wind farms generate electricity well below their installed capacity, resulting in considerable wastage of resources. Non-grid-connected wind power theory proposes that large-scale wind power output does not necessarily have to be fed into the grid, but can be used directly in industrial production. Thus, the use of the theory can promote the sustainable development of the wind power industry by obviating the need for power grid. In this paper we analyze the influence of government policy on wind power industry from the perspective of institutional change, by employing the basic theories of new institutional economics. A development model for non-grid-connected wind power is proposed in order to implement institutional change in accordance with the specific characteristics of wind power industry in China. This model requires the government to play an active role in institutional development by increasing economic efficiency in order to promote the sustainable development of wind power.

Keywords: Non-grid-connected wind power; Energy policy; New institutional economics (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421512001607
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:45:y:2012:i:c:p:350-358

DOI: 10.1016/j.enpol.2012.02.043

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 ().