A Review of Carbon Reduction Pathways and Policy–Market Mechanisms in Integrated Energy Systems in China

Yifeng Liu, Meng Chen, Pingfan Wang, Yingxiang Wang, Feng Li () and Hui Hou
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Yifeng Liu: Hubei Power Exchange Center, Wuhan 430077, China
Meng Chen: Hubei Power Exchange Center, Wuhan 430077, China
Pingfan Wang: Economics and Technology Research Institute of State Grid Hubei Electric Power Co., Ltd., Wuhan 430077, China
Yingxiang Wang: Economics and Technology Research Institute of State Grid Hubei Electric Power Co., Ltd., Wuhan 430077, China
Feng Li: School of Automation, Wuhan University of Technology, Wuhan 430070, China
Hui Hou: School of Automation, Wuhan University of Technology, Wuhan 430070, China

Sustainability, 2025, vol. 17, issue 7, 1-25

Abstract: Integrated energy systems are critical physical platforms for driving clean energy transitions and achieving carbon reduction targets. This paper systematically reviews carbon reduction pathways across generation, grid, load, and storage from the dual perspectives of technology and policy–market mechanisms. First, the review outlines a multi-tier integrated energy system architecture and evaluates crucial technologies, such as back-pressure modification, flexible direct current transmission, and virtual energy storage, in improving energy efficiency and carbon reduction. Second, it explores how policy–market mechanisms incentivize carbon reduction, focusing on green power, green certificates, and the carbon market to support integrated energy system transformation. This paper offers a comprehensive theoretical framework and practical basis for the low-carbon transition of integrated energy systems.

Keywords: integrated energy system; carbon emission reduction; technological approaches; policy–market mechanisms (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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