Government regulation of renewable energy generation and transmission in China’s electricity market
Chaoyang Zhao and
Renewable and Sustainable Energy Reviews, 2018, vol. 93, issue C, 775-793
To build a clean, safe, sustainable and decarbonized energy system, China has been optimizing its energy supply structure and focusing on renewable power generation, transmission, and government policies. The development of renewable energy generation and transmission involves the strategic interaction among fossil-energy power plants, provincial power grids and provincial governments, whose interests are inconsistent. Poor integration and the increasing curtailment of renewable energy are posing an unprecedented challenge to China's electricity sector. Thus, to cope with the market failure and effectively guide the performance of game agents to maximize the overall interests, it’s necessary to strengthen government regulation on renewable power generation and transmission. Based on previous researches, this research establishes an evolutionary game model of renewable power generation and transmission from the perspective of bounded rationality and multi-agents game to analyze the necessity and effectiveness of strengthening relevant government regulation. Apart from exploring the evolutionary stability strategy and the governing boundary conditions, this research also investigates the influence of exogenous variables through simulation analysis. Two central findings are as follows: first, the only evolutionary stable equilibrium lies on government regulation, power plant obedience, and power grid allowance. Second, reasonable government punishment will accelerate the formation of the market equilibrium.
Keywords: Decarbonized energy system; Renewable portfolio standard; Renewable energy generation and transmission; Government regulation; Evolutionary game (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:rensus:v:93:y:2018:i:c:p:775-793
Ordering information: This journal article can be ordered from
http://www.elsevier. ... 600126/bibliographic
Access Statistics for this article
Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski
More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().