Nonlinear integrated resource strategic planning model and case study in China's power sector planning

Jiahai Yuan, Yan Xu, Junjie Kang, Xingping Zhang and Zheng Hu

Energy, 2014, vol. 67, issue C, 27-40

Abstract: In this paper we expand the IRSP (integrated resource strategic planning) model by including the external cost of TPPs (traditional power plants) and popularization cost of EPPs (efficiency power plants) with nonlinear functions. Case studies for power planning in China during 2011–2021 are conducted to show the efficacy of the model. Scenarios are compiled to compare the pathways of power planning under different policies. Results show that: 1) wind power will become competitive with technical learning, but its installation is undesirable when the external cost of coal power is not internalized; 2) the existence of popularization cost will hinder EPPs' (efficiency power plants) deployment and pure market mechanism is not enough to deliver EPPs at socially desirable scale; 3) imposition of progressive emission tax on coal power at an average of 0.15–0.20 RMB/KWh can remedy the market distortion and promote the development of wind power by a significant margin; 4) nuclear power will grow stably when its external cost is set no more than 0.187 RMB per KWh, or 87% of its internal cost. The proposed model can serve as a useful tool for decision support in the process of power planning and policy formulation for national government.

Keywords: Nonlinear IRSP model; External cost; Popularization cost; China (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:67:y:2014:i:c:p:27-40

DOI: 10.1016/j.energy.2013.12.054

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