Scenario Analysis in the Electric Power Industry under the Implementation of the Electricity Market Reform and a Carbon Policy in China

Peng Wang and Meng Li
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Peng Wang: Electrical and Electronic Engineering School, North China Electric Power University, Beijing 102206, China
Meng Li: Electrical and Electronic Engineering School, North China Electric Power University, Beijing 102206, China

Energies, 2019, vol. 12, issue 11, 1-26

Abstract: In China, electricity market reform was first implemented in 2015. At the same time, the national carbon market was built, along with the electricity industry, which was considered a breakthrough. Some key considerations for the future development of China’s electricity system include the implementation of demand-side measures in order to adjust the peak-to-valley difference and the economic dispatch of increasing intermittent renewable energy and traditional energy in the process of power marketization with the implementation of a carbon policy. This paper examines the impact of policies on electricity generation by modelling the evolution process of power marketization and the economic dispatch of generation technologies over a sixteen-year period beginning in 2020. We model four potential influencing factors of government policy: (1) the demand response mode; (2) power marketization process; (3) capacity adjustment of thermal power units; and (4) carbon taxes, which vary in terms of their timing and amount. This model assesses the impact of these influencing factors on the competition between electricity generators using a range of output variables, including generation portfolios, electricity prices, capacity factors, CO 2 emissions, etc. The results show that the new round of electricity market reforms has had a positive impact on renewable energy generation. The influence of carbon policy is evident in the promotion, transformation and elimination of thermal units, and an indirect increase in renewable energy generation.

Keywords: electricity market reform; carbon policy; economic dispatch; generation portfolios; renewable energy. (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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