China’s electricity transmission and distribution tariff mechanism based on sustainable development |
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| Affiliation: | 1. School of Economics and Management, North China Electric Power University, Zhu Xin Zhuang, Bei Nong Road No. 2, Changping District, Beijing 102206, China;2. China Yangtze Power Co., Ltd., Jin Rong Street No. 19, Xicheng District, Beijing 100032, China;3. Ganshu Electric Power Corporation, Lanzhou 730050, China;1. Virginia Tech, USA;2. Pepco Holdings, Inc, USA;1. Institute of Public Policy and Division of Public Policy, Hong Kong University of Science and Technology, Clear Water Bay, Kowloon, Hong Kong;2. School of Public Policy and Management, Tsinghua University, Beijing 100084, China;3. School of Public Administration and Policy, Renmin University of China, Beijing 100872, China;4. National Academy of Development and Strategy, Renmin University of China, Beijing 100872, China;5. Schwarzman College, Tsinghua University, Beijing 100084, China |
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| Abstract: | In order to guarantee the rapid sustainable development of the social economy, the power grid will make large investments in the construction of smart grids, the renewable energy network, the construction of long-distance transmission grid channels as well as the technology and service innovation of the power grid. According to the electricity transmission and distribution tariff accounting mechanism of costs and benefits, the power grid investment needs to be recycled by the transmission and distribution tariff. However, at present, the low electricity transmission and distribution tariff in China, which is based on the difference between the electricity sales price and the average purchase price, cannot guarantee the return of investment and the sustainable development of the power grid. Based on the current situation of China’s power grid construction and electricity transmission and distribution tariff, this paper proposes that the new investments in the power grid can be divided into technical innovation investments, environmentally friendly investments, service promotion investments and other kinds of investments, according to their functions. Then, four electricity transmission and distribution tariff and power grid investment linkage models are built and example analysis undertaken, respectively, which are the timely linkage model, static linkage model, ladder linkage model, in which the electricity tariff space changes by a fixed absolute value annually and ladder linkage model in which the electricity tariff space changes by a fixed proportion value annually. The results reveal that the ladder linkage model in which the electricity tariff space changes by a fixed absolute value annually can guarantee relatively smooth changes in the electricity tariff, and is suitable for the actual situation of China’s power market. The transmission and distribution electricity tariff and power grid investment linkage models based on sustainable development built in this paper are beneficial for promoting the reforms of the electricity transmission and distribution tariff in China and guiding the establishment of a scientific electricity tariff mechanism. |
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| Keywords: | Sustainable development Transmission and distribution electricity tariff Power grid investment Linkage mechanism |
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