What Is the Impact of the Renewable Energy Power Absorption Guarantee Mechanism on China’s Green Electricity Market?

Yan Lu, Xuan Liu, Hongjian Li, Haoran Wang (), Jiajie Kong, Cheng Zhong, Mingli Cui, Yan Li, Xiaoqi Sun, Jiadong Xuan and Tiantian Feng
Additional contact information
Yan Lu: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Xuan Liu: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Hongjian Li: State Grid Jibei Electric Power Company Limited Economic Research Institute, Beijing 100038, China
Haoran Wang: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Jiajie Kong: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Cheng Zhong: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Mingli Cui: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Yan Li: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Xiaoqi Sun: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Jiadong Xuan: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China
Tiantian Feng: School of Economy and Management, China University of Geosciences Beijing, Beijing 100083, China

Energies, 2023, vol. 16, issue 21, 1-20

Abstract: In order to accelerate the construction of a clean, low-carbon, safe and efficient energy system, China set the provincial weight of responsibility for renewable energy power consumption and established a renewable energy power absorption guarantee mechanism in 2019. As a market incentive policy, it has enduring effect on the low-carbon transformation of the power industry. Firstly, the operation mechanism of the renewable energy consumption guarantee mechanism is analyzed. The general framework, core elements and supporting measures are clarified. Secondly, a stock-flow diagram is constructed based on the system dynamics method. It contains the green electricity market sub-module, the green-certificate market sub-module and the excess power absorption market sub-module. Finally, multiple scenarios are set up to simulate the impact of the green-certificate market and excess power absorption market improvements on the installed capacity and tariff of China’s green power market. The renewable energy guarantee mechanism is an effective means to promote the consumption of green electricity in China. In addition, in the short term the cost of electricity for users has increased, but in the long term the cost of electricity shows a fluctuating downward trend. This study provides theoretical references for the formulation of clean and low-carbon policy objectives in the power industry and the optimization of market mechanisms.

Keywords: electricity market; renewable energy consumption; market-operation-mechanism analysis; system dynamics (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: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/1996-1073/16/21/7434/pdf (application/pdf)
https://www.mdpi.com/1996-1073/16/21/7434/ (text/html)

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:gam:jeners:v:16:y:2023:i:21:p:7434-:d:1273791

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().