Research on Strategy Selection of Power Supply Chain Under Renewable Energy Consumption and Energy Storage Cost Sharing

Di Wang (), Qiyue Wu and Junyan Guo
Additional contact information
Di Wang: Center of Energy Economy Study, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Qiyue Wu: Center of Energy Economy Study, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China
Junyan Guo: Center of Energy Economy Study, School of Business Administration, Henan Polytechnic University, Jiaozuo 454003, China

Sustainability, 2025, vol. 17, issue 10, 1-28

Abstract: The development of renewable energy in the power industry plays a crucial role in mitigating environmental degradation. The renewable energy (RE) consumption system and green certificate trading market are significant in promoting renewable energy adoption, while energy storage technology has advanced substantially to address power supply instability. Against this backdrop, this study employs a Stackelberg game approach to construct a power supply chain model, with generation companies as leaders and retail companies as followers, examining energy storage cost-sharing mechanisms and retailers’ renewable energy investment decisions. Key findings include the following: (1) a higher RE consumption ratio reduces wholesale prices, power stability, electricity demand, and retailers’ renewable investment; (2) when the energy storage cost coefficient exceeds a threshold, higher green certificate prices increase retailers’ renewable investment; (3) beyond the threshold, a higher RE consumption ratio incentivizes retailers to invest in renewables; (4) proportional cost sharing enhances renewable investment by approximately 15% and maximizes supply chain profits. The study provides decision-making insights for power companies and policy references for governments.

Keywords: electricity supply chain; renewable energy input; energy storage cost sharing; power stability (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2071-1050/17/10/4382/pdf (application/pdf)
https://www.mdpi.com/2071-1050/17/10/4382/ (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:jsusta:v:17:y:2025:i:10:p:4382-:d:1654043

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

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