International cooperation on renewable energy development in China – A critical analysis

The past decades have witnessed the rapid growth of foreign participation in the renewable energy development in China. This is a result of massive energy demand and the Government’s strategy to shadow the role of traditional fossil fuel in the energy mix. This paper critically reviewed the international cooperation in the field of renewable energy with various partners in the new century. The cooperation pattern varies from partner to partner. The results showed that China has benefited from the international cooperation on renewable energy such as accessing to finance and advanced technologies, developing human resources related to renewable energy, and enhancing related policy framework. Major issues associated with the international cooperation are discussed as well.     

International cooperation on renewable energy electricity in China – A critical analysis

Facing the energy crisis and the requirement of green power, China is making great efforts to fulfill the international cooperation on renewable energy electricity aimed at protecting the security of electricity supply and economy development. This paper firstly utilizes the tool of SWOT strategy analysis to make a research on internal and external environment of international cooperation on renewable energy electricity in China. Secondly discusses the current situation and existing problems of international cooperation from four dimensions of strength, weakness, opportunity and threat. Then, gives a propose of four different kinds of international cooperation strategies based on the combination analysis of SWOT matrix. Finally puts forward the detailed implementation strategies of the policy recommendations for international cooperation on renewable energy electricity.     

International cooperation mechanism on renewable energy development in China – A critical analysis

Facing the growing energy demand and the requirement of low-carbon development, China is making great efforts to fulfill the international cooperation on renewable energy aimed at protecting the security of energy and economy. Whereas, energy problems in various countries have become increasingly prominent, and the lack of a multilateral cooperation mechanism has become the key obstacle to the cooperation. This paper analyzes current situation and existing problems of international cooperation on renewable energy in China, and then puts forward the establishment of three cooperation mechanisms: the regional mechanism, the developing countries mechanism and the developing-developed countries mechanism, followed by a summary and analysis of the participants. The principles and steps of mechanisms making and the cooperation institution for mechanism operation will be discussed as well as making some policy recommendations on the cooperation methods.     

Pricing and affordability of renewable energy in China – A case study of Shandong Province

The global warming and climate change have put enormous pressure on both governments and industries to re-think their attitudes and behaviours towards sustainability issues. The past decades have witnessed a number of renewable energy developments across the world. Even though these developments are not issue-free, it is generally recognized that the benefits outweigh disadvantages. However, there is an increasing level of concern on the high initial cost associated with the renewable energies, which was claimed as one of critical barriers to the promotion of its further developments. A case study approach is adopted in this study to investigate the pricing and affordability issues associated with the renewable energy in China. The policy framework and related statistics are critically reviewed in order to discuss these issues from different stakeholders’ perspective in Shandong province, China. It is concluded that the affordability remains a critical issue despite numerous efforts have been made by the Chinese Government and Shandong Provincial Government on renewable power pricing. This study offers a useful reference to pricing and affordability of renewable energy.     

Wind power and photovoltaic power: How to improve the accommodation capability of renewable electricity generation in China?

China's wind curtailment and photovoltaic curtailment was one of the prominent issues in 2014, and the renewable curtailment worsened in 2015. With the rapid growth of renewables, the phenomenon of the insufficiency in renewable accommodation capability is becoming more and more serious in 2016. In that case, the problem of the insufficient accommodation capability is pointed out by analyzing China's development requirements. The renewable power generation scale, the renewable power consumption, and the restrictions on the renewable electricity generation are discussed from the China's market perspective. Meanwhile, the legal environment, the planning requirement, the institutional setting, and the policy tools are introduced from the perspective of governmental regulation. An empirical analysis, a cause analysis and a trend analysis are illustrated before explaining the problem of renewable curtailment and proposing a solution for enhancing the accommodation capability. According to the analysis results, the solution for addressing the wind curtailment and PV curtailment is offered with respect to the technology, the institution, the legislation, and the political aspect. Through the research, the research conclusions are drew finally and the corresponding policy recommendations are put forward.     

On the physics of power,energy and economics of renewable electric energy sources – Part I

Environmental concerns have increasingly led to the installation of Renewable Energy Technologies (RETs) despite the fact that they are recognized as expensive. Innovative efforts within the area are beset with difficulties [1], and they are at risk of producing misdirected or insignificant improvements in terms of the cost effectiveness of total energy conversion systems. This paper investigates how RETs can be evaluated, in terms of economy and engineering solutions, by studying the fundamental physics of renewable energy sources and how it matches with the RETs. This match is described by the “Degree of Utilization”. The findings indicate that new innovations should focus on the possible number of full loading hours. RETs that are correctly matched to their energy source generate a higher amount of electric energy and have a higher potential of becoming more competitive. In cases where this aspect has been ignored, leading to relatively small degrees of utilization, it can be understood as an engineering mismatch between installed power, converted energy, and the fundamental physics of the renewable energy sources. Since there is a strong and possibly biased support for so-called mature RETs and already existing solutions, a clarification of how fundamental physical laws affect the cost of investments and payback of investments is needed. The present paper is part I out of II and it focuses on the difference between power and energy and the physics of different energy sources and their utilization.     

Photovoltaic energy generation in Brazil – Cost analysis using coal-fired power plants as comparison

We make a brief analysis of the evolution of photovoltaic systems, highlighting the present situation worldwide and in Brazil. We compare costs of energy generation associated to photovoltaic and to coal-fired power plants. Coal-fired generation represents the eligible choice for the Brazilian State of Rio Grande do Sul, where thermal plants may use locally extracted coal. The production cost of the energy generated with coal is evaluated taking in account the effect of the invisible cost represented by externalities that affect human health. The price evolution of Photovoltaic modules is presented, as well as trends on decreasing costs for new installations. We also calculate the production cost of the AC energy generated by three photovoltaic plants, with different power, derived from a model. The model is used to make sensitive analysis based on the adjustment of some factors that directly affect Brazilian costs such as: insolation, module's custom and transportation taxes, effect of economy of scale, cost of money. A cost comparison is made between the two technologies and some government incentives are proposed to narrow the existing financial gap.     

The future of the European electricity system and the impact of fluctuating renewable energy – A scenario analysis

The ongoing transformation of the European energy system comes along with new challenges, notably increasing amounts of power generation from intermittent sources like wind and solar. How current objectives for emission reduction can be reached in the future and what the future power system will look like is, however, not fully clear. In particular, power plant investments in the long run and power plant dispatch in the short run are subject to considerable uncertainty. Therefore an approach is presented which allows electricity market development to be assessed in the presence of stochastic power feed-in and endogenous investments in power plants and renewable energies. To illustrate the range of possible future developments, five scenarios for the European electricity system up to 2050 are investigated. Both generation investments and dispatch as well as utilization of transmission lines are optimized for these scenarios and additional sensitivity analyses are carried out.     

Does a small difference make a difference? Impact of feed-in tariff on renewable power generation in China

This study investigates the effectiveness of regionally differentiated feed-in tariffs (FIT) for the development of renewable energy in China. By using a spatial regression discontinuity design, we estimate the impacts of regionally differentiated FITs on the outcome indicators of wind and solar power generation, such as utilization rate, installed capacity, power generation, and hours of operation. Our findings show that FIT implementation plays an important role in promoting renewable energy development. A small difference in the tariff rate leads to statistically significant differences in outcome indicators among regions. Our results suggest that regionally differentiated FITs might help mitigate the overproduction of wind electricity in regions with abundant wind resources but low electricity demand. In addition, we conclude that enlarged tariff gap among regions can lead to greater impact on increasing installations of renewable power generation facilities in resource-poor regions.     

How to stimulate renewable energy power generation effectively? – China's incentive approaches and lessons

The renewable energy power generation (REPG) in China has experienced tremendous growth in the last decade. To understand this rapid growth, it is necessary to explore how Chinese government triggers the remarkable development of the industry. This paper offers a systematic analysis of the incentive policy system for REPG in China, covering wind power, solar photovoltaic, small hydropower (single-unit power generation capacity less than 50 MW), biomass power and geothermal power. The incentive system contains laws, regulations, policies and industrial plans issued during the 11th and 12th “Five-year Plan” periods (2006–2015). Four major incentive strategies of the Chinese government are identified: research and development incentives, fiscal and tax incentives, grid-connection and tariff incentives, and market development incentives. The results show these incentive methods have played a significant role in promoting the development of REPG in China, but still there are some problems associated with them. International comparisons of the incentive policies with those of Denmark, Germany and US, as well as the strategies to further improve the Chinese incentive approaches are discussed. This comprehensive analysis of China's incentive policy system for REPG helps to understand China's experience in promoting renewable energy, contributing to better decision-making in policy.     

LCA of renewable energy for electricity generation systems—A review

Sustainable development requires methods and tools to measure and compare the environmental impacts of human activities for various products (goods and services). Providing society with goods and services contributes to a wide range of environmental impacts. Environmental impacts include emissions into the environment and the consumption of resources as well as other interventions such as land use, etc. Life cycle assessment (LCA) is a technique for assessing environmental loads of a product or a system. The aim of this paper is to review existing energy and CO₂ life cycle analyses of renewable sources based electricity generation systems.The paper points out that carbon emission from renewable energy (RE) systems are not nil, as is generally assumed while evaluating carbon credits. Further the range of carbon emissions from RE systems have been found out from existing literature and compared with those from fossil fuel based systems, so as to assist in a rational choice of energy supply systems.     

Does renewable energy generation decrease the volatility of electricity prices? An analysis of Denmark and Germany

Although variable renewable energy (VRE) technologies with zero marginal costs decrease electricity prices, the literature is inconclusive about how the resulting shift in the supply curves impacts price volatility. Because the flexibility to respond to high peak and low off-peak prices is crucial for demand-response applications and may compensate for the losses of conventional generators caused by lower average prices, there is a need to understand how the penetration of VRE affects volatility. In this paper, we build distributed lag models with Danish and German data to estimate the impact of VRE generation on electricity price volatility. We find that in Denmark wind power decreases the daily volatility of prices by flattening the hourly price profile, but in Germany it increases the volatility because it has a stronger impact on off-peak prices. Our analysis suggests that access to flexible generation capacity and wind power generation patterns contribute to these differing impacts. Meanwhile, solar power decreases price volatility in Germany. By contrast, the weekly volatility of prices increases in both areas due to the intermittency of VRE. Thus, policy measures for facilitating the integration of VRE should be tailored to such region-specific patterns.     

Assessing the impact of renewable energy sources on the electricity price level and variability – A quantile regression approach

The literature on renewable energy sources indicates that an increase of the intermittent wind and solar generation affects significantly the distribution of electricity prices. In this article, the influence of two types of renewable energy sources (wind and solar photo voltaic) on the level and variability of German electricity spot prices is analyzed. The quantile regression models are built to estimate the merit order effect for different quantiles of electricity prices. The results indicate that both types of renewable generations have a similar, negative impact on the price level, approximated by the price median. When the price volatility, measured by the inter-quantile range (IQR), is considered, the outcomes show that wind and solar influence prices differently. Conditional on the level of the total demand, the wind generation would either increase (when the demand is low) or decrease (when the demand is high) the IQR. Meanwhile, the increase of solar power stabilizes the price variance for moderate demand level. Thus, policy supporting the development and integration of RES should search for a balance between the wind and solar power.     

An assessment on the planning and construction of an island renewable energy system – A case study of Kinmen Island

During the last 50 years, Kinmen's economy has gone from military-based to increasingly tourism-based, Kinmen has been putting various constructions into action, and hence, the demand for electricity supply is getting higher relatively while the province is pushing various constructions. Nowadays, Kinmen County Government has made directions for future developments already and kept on promoting the sustainable development of Kinmen Island in order to make it a suitable place for living. According to the development blueprint, the future resident population will increase to around 150 ～ 200 thousand people so the relative electricity consumption in Kinmen Island will cause serious problems for Taipower in addition to large scale environmental pollution. The present study researches on both the limitation and independence of this particular island and presumes the electricity power supply will be provided through renewable energy sources, such as solar energy, wind energy, and tidal power generation and so on, whereby it will achieve the target of energy saving and carbon reduction successfully soon. Upon the construction process of the renewable energy sources, this study will simultaneously assess the eco-environment and social conditions on the island to evaluate the feasibility of existing renewable energy technologies which are more mature and determine the optimum renewable energy system that shall be constructed in the Kinmen region in the near future, in order to replace traditional energy sources. Meanwhile, it will assist the related energy industries to create an ultra-clean environment in Kinmen with self-developing power and enhance international competition forces so as to establish a positive international image of environmental protection by achieving a habitat with energy self-sufficiency, and ultimately the empirical model can be duplicated and promoted to other islands.     

Does FDI influence renewable energy consumption? An analysis of sectoral FDI impact on renewable and non-renewable industrial energy consumption

This study examines the link between foreign direct investment (FDI) and energy demand. FDI is a source of financing that allows businesses to grow. At the same time, FDI can be a source of innovation that promotes energy efficiency. Existing evidence on the impact of aggregate FDI inflows on energy consumption is scarce and inconclusive. In the current study, we disaggregate FDI inflows into mining, manufacturing, total services, and financial services components and examine the impact of these FDI flows on renewable – and non-renewable industrial energy – sources for 74 countries for the period 1985–2012. We employ a Blundell–Bond dynamic panel estimator to control for endogeneity and omitted variable biases in our panels. The results point broadly to an energy consumption-reducing effect with respect to non-renewable sources of energy and an energy consumption-augmenting effects with respect to renewable energy. We find that these effects vary in magnitude and significance by sectoral FDI.     

The potential estimation and factor analysis of China′s energy conservation on thermal power industry

At present, researches about energy conservation are focused on prediction. But there are few researches focused on the estimation of effective input and energy conservation potential, and there has been even no research on energy conservation of thermal power industry of China. This paper will try to fill in such a blank. Panel data on Chinese thermal power industry over 2005–2010 are established, and we adopt the stochastic frontier analysis approach to estimate the energy saving potential of thermal power industry. The results are as follows: (1) the average efficiency of energy inputs in China′s thermal power industry over 2005–2010 was about 0.85, and cumulative energy saving potential equals to 551.04 (Mtce); (2) by improving the non-efficiency factors, the relatively backward inland cities could achieve higher energy saving in thermal power industry; (3) the energy input efficiency of Eastern China Grid is shown to be the highest; (4) in order to realize the energy-saving goal of thermal power industry, one important policy method the government should adopt is to conduct a market-oriented reform in power industry and break the state-owned monopoly to provide incentives for private and foreign direct investment in thermal power sector.     

Economic assessment of virtual power plants in the German energy market — A scenario-based and model-supported analysis

The energy transition (“Energiewende”) in Germany will result in a substantial transformation of the energy supply system. Virtual power plants are expected to be important components of the new intelligent energy infrastructure. They aggregate beside different types of distributed generation units also active consumers and storage technologies in order to integrate these in a profit-maximising, system-stabilising, and sustainable way. The assessment of the economic performance of virtual power plants requires a scenario-based and model-supported analysis. In this relation, future energy market conditions are simulated using the scenario methodology. Starting from the year 2015, three scenarios have been identified that illustrate alternative energy developments in Germany by 2030. Based on these scenarios, the additional revenues potential of the modeled virtual power plant is identified when compared to an independent and non-market-oriented operation mode of distributed energy resources. According to the model results, revenues of the VPP can increase by 11% up to 30% in the analyzed scenarios in 2030 due to the market-oriented operation mode. Nevertheless, the amount and composition vary depending on technology-specific subsidies, temporary nature of power demand and price structures in the energy market. Fluctuating renewable energies are expected to benefit from the market-oriented operation mode in the virtual power plant, especially through the EEG direct marketing. The selective and regulated shutdown of renewable energies in times of negative electricity prices may lead to further cost savings. The utilization of temporary price fluctuations in the spot market and the demand-oriented provision of control power offer high additional revenue potential for flexible controllable technologies such as battery storage, biomethane as well as combined heat and power units. Finally, the determination of the long-term profitability of a virtual power plant still requires a full-scale cost–benefit analysis. For this holistic approach, the model results provide a reliable scientific basis.     

Decarbonising power generation in China—Is the answer blowing in the wind?

This paper examines the current situation of wind industry development, evaluates the potentials of GHG mitigation and identifies the key determinants of scaling up wind power deployment in China. China has doubled its wind capacity every year for the past 4 years, the total installed capacity reached 12 Gigawatts (GW) and surpassed the 10-GW target 2 years ahead of schedule in the national plan for renewable energy development [38], [71], [87],and would reach 100–120 GW by 2020 according to the government’s new energy plan. It may become the biggest wind power generation and wind turbines manufacturing country of the world in the next years if the abundant wind resources and enormous domestic market can be harnessed with appropriate policies and efficient technology. The recent positive move in vigorous development of wind power in China implies that the total installed capacity will far exceed the targets of the government’s 2007 renewable energy plan. However, the prosperous Chinese wind market has also revealed some worrisome signals and weakness [28], [58], such as low capacity factor and frequent outage of wind farms, inadequate grid infrastructure, long distance transmission, low quality of turbines, adverse price bidding, nepotism in wind farm developer selection process and regulatory uncertainty and policy inconsistency which all conspire to hinder effective power generation in the massively new installed wind capacities. A coherent policy framework is required for creating enabling environment for accelerating wind energy penetration and state-of-art technology deployment in the country. It is argued that institutional, financial and technical capacity will need to be cemented to exploit the huge potentials of wind resources to meet the rapidly growing demand for electricity in China in the coming decades with minimised environmental implications.     

Rationality of energy efficiency improvement targets under the PAT scheme in India – A case of thermal power plants

The market-based Perform Achieve and Trade scheme was introduced in India to enhance the energy efficiency of energy-intensive sectors, and for thermal power plants by reducing their specific energy consumption within the framework of a tradable certificate scheme. International experience suggests that effectiveness of such schemes is greatly influenced by the assigned targets of the obligated units. Setting rational targets is thus, a key aspect of successful implementation of the scheme. In the present study, we examine the rationality of the targets set for the power sector of India, based on comparing it with energy saving potential of the plants, and the targets assigned to the respective plants. Data envelopment analysis models are used to determine relative efficiency and energy saving potential. The study results indicate that in most cases, (i) The targets are much less than the actual potentials of the thermal power sector, (ii) There exist substantial inefficiencies within the system in both energy use and managerial dexterity; and (iii) If the sector realizes its full potential, then the Energy Saving Certificate market may witness a surplus of 4.7 million certificates on account of thermal power sector alone.     

Effective policies for renewable energy—the example of China's wind power—lessons for China's photovoltaic power

China, one of the global biggest emitter of CO₂, needs promotion renewable energy to reduce air pollution from its surging fossil fuel use, and to increase its energy supply security. Renewable energy in its infancy needs policy support and market cultivation. Wind power installed capacity has boomed in recent year in China, as a series of effective support policies were adopted. In this paper, I review the main renewable energy policies regarding to China's wind power, including the Wind Power Concession Program, Renewable Energy Law, and a couple of additional laws and regulations. Such policies have effectively reduced the cost of wind power installed capacity, stimulated the localization of wind power manufacture, and driven the company investment in wind power. China is success in wind power installed capacity, however, success in wind-generated electricity has yet achieved, mainly due to the backward grid system and lack of quota system. The paper ends with the recommended best practice of the China's wind power installed capacity might be transferable to China's photovoltaic power generation.