The role of coal in energy policy and sustainable development of Turkey: Is it compatible to the EU energy policy?

This paper aims to assess the current and future role of coal in energy strategy of Turkey, and evaluates the compatibility of policies to the EU energy policy and strategy. Coal is regarded as the most important indigenous energy source in Turkey together with hydropower to strengthen the supply security of the country. Turkish government set targets to fully utilize coal reserves of the country in next decades. However, the country is also in the process of becoming an EU Member State, hence, it is expected that the energy policies have to comply with the EU. Moreover, Turkey ratified Kyoto Protocol in 2009, thus the country should limit CO₂ emission together with other greenhouse gases. The probable obstacles that Turkey may face due to the utilization of coal were determined as CO₂ emissions, lack of technology and application in Carbon Capture and Storage (CCS) and health and safety issues. It is concluded that coal is a very important domestic energy source for Turkey but new policies have to be developed and adopted immediately, and more realistic targets for the country should be set accordingly.     

Focus on the development of offshore wind power in China: Has the golden period come?

In recent years, Chinese Government paid more attention to the exploitation of offshore wind power, and it became an important trend in the development of wind power industry. However, the development of offshore wind power in China was still in the initial stage. Compared with land-based wind power, the development of off-shore wind power had not only weaknesses and uncertainties, but also strengths and opportunities. In order to research the development of offshore wind power, this paper summarized the aspects on policy, market, technology and development planning of offshore wind power in China, and then adopted SWOT method to analyze the influencing factors, which impact on the development of China's offshore wind power. At last, this article analyzed the internal and external factors that affect the golden period of offshore wind power development, and drew a conclusion that the golden period of offshore wind power in China will come in the future, and most likely around 2020.     

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.     

The transnationalisation of the Indian coal economy and the Australian political economy: The fusion of regimes of accumulation?

The Indian government's economic development program is predicated on increasing electricity generating capacity. Coal fired power and removal of obstacles to private corporations investing in generating capacity are core elements in this program. With difficulties in boosting national coal production, the state-owned Coal India Limited and energy corporations have spearheaded a range of global coal sourcing endeavours, including investing in offshore deposits. Energy security has become reflected in engineering global supply chains, securing control of coal, with two of the largest projects involving Adani and GVK proposing to develop mines in the Galilee Basin in Queensland, Australia. These investments become the institutional and organisational architecture that locks in demand, a global demand which helps to explain successive Australian governments support for and approval of the projects. Notwithstanding considerable environmental opposition, and questions about the economic merits and commercial viability of the projects, Australian governments are wedded to the conviction that expanded development of the economy is tied to extracting and exporting fossil fuels, to consolidating Australia as an ‘energy superpower’.     

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.     

The future developments of the electricity prices in view of the implementation of the Paris Agreements: Will the current trends prevail,or a reversal is ahead?

We assess the impact on the European electricity market of the European Union “Clean energy for all Europeans” package, which implements the EU Nationally Determined Contribution in Paris COP 21. We focus on the year 2030, which is the year with defined climate targets. For the assessment, we employ a game-theoretic framework of the wholesale electricity market, with high technical detail. The model is applied to two core scenarios, a Base scenario and a Low Carbon scenario to provide insights regarding the future electricity capacity, generation mix, cross-border trade and electricity prices. We also assess three additional variants of the core scenarios concerning different levels of: a) fossil and CO₂ prices; b) additional flexibility provided by batteries; c) market integration. We find that the electricity prices in 2030 substantially increase from today's level, driven by the increase in fuel and CO₂ prices. The flexibility from batteries helps in mitigating the price peaks and the price volatility. The increased low marginal cost electricity generation, the expansion of non-dispatchable and distributed capacities, and the higher market integration further reduce the market power from producers in the electricity markets from today's level.     

Hydropower in green pricing schemes: a sustainable source of power?

This column discusses the developments of the markets and the changes in policy regarding the supply and use of green energy. It is the product of a co-operation between Refocus and www.greenprices.com. In each issue, key information will be presented on green energy both in Europe and abroad. This issue focuses on the use of hydropower for the production of green energy.     

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.     

Levelling the playing field? The influence of national wind power planning instruments on conflicts of interests in a Swedish county

Slow and complicated wind power planning and permitting procedures have been a large obstacle for wind power diffusion in Sweden and other countries. This paper complements previous siting-oriented literature with a planning perspective on these problems. The focus is two national planning instruments implemented in Sweden in the early 2000s: a national planning target and an appointment of areas of national interest for wind power. The paper identifies different types of conflicts of interest related to wind power – in addition to the conflict between wind power as a national public interest and various local private interests – and analyses the impact of the national planning instruments on the handling of these conflicts in the land-use planning process in the County of Östergötland. The analysis shows that the planning target actually made local planning officials even more inclined to treat wind power as a private rather than a public interest and that the method used to identify areas of national interest of wind power forced wind power to compete with the combined strengths of all other public interest. The planning instruments thus left wind power to fight an uphill battle rather than to meet other interests face-to-face on a level playing field.     

What hinder the further development of wind power in China?—A socio-technical barrier study

Promoting wind power is a long-term strategy of China to respond to both energy shortage and environmental pollution. Stimulated by various incentive policies, wind power generation in China has achieved tremendous growth, with the cumulative installed capacity being the largest worldwide for five consecutive years since 2010. However, obstructed by various barriers, wind power provides only 2.6% of national electricity generation in China, despite the strong support from the government. From a socio-technical transition perspective, this paper aims to systematically analyze the barriers hindering the further development of China's wind power. A wind power niche model is established to illustrate the complex interactions among actors in the wind power industry and electricity supply regime. Then, qualitative content analysis is adopted to process the related evidence and data, and four categories of socio-technical barriers are identified, including technology, governance, infrastructure and culture barriers. The study shows that various interrelated barriers form a blocking mechanism which prohibits the further development of wind power in China. Policy suggestions are proposed to eliminate the barriers and further empower the wind power niche. The lesson learned from China can offer useful references for other economies to promote wind power industries of their own.     

Robust MACCs? The topography of abatement by fuel switching in the European power sector

This paper employs a simulation model of the European power sector to analyze the abatement response to a CO₂ price through fuel switching, one of principal means of reducing greenhouse gas emissions in any economy. Abatement is shown to depend not only on the price of allowances, but also and more importantly on the load level of the system and the ratio between natural gas and coal prices. The interplay of these different determinants vitiates any simple relation between a CO₂ price and abatement and requires the development of more than two-dimensional graphics to illustrate these complex relationships. In the terms of the literature on the use of marginal abatement cost curves (MACCs), we find that these MACCs are not robust as usually defined and we suggest that the more complex topography developed in this paper may be more helpful in visualizing this abatement response to a CO₂ price.     

Solar power generation in the US: Too expensive,or a bargain?

This article identifies the combined value that solar electric power plants deliver to utilities' rate payers and society's tax payers. Benefits that are relevant to utilities and their rate payers include traditional, measures of energy and capacity. Benefits that are tangible to tax payers include environmental, fuel price mitigation, outage risk protection, and long-term economic growth components. Results for the state of New York suggest that solar electric installations deliver between 15 and 40 ¢/kWh to ratepayers and tax payers. These results provide economic justification for the existence of payment structures (often referred to as incentives) that transfer value from those who benefit from solar electric generation to those who invest in solar electric generation.     

Learning curves for harnessing biomass power: What could explain the reduction of its cost during the expansion of China?

To explain the factors influencing the cost of biomass power in China, we applied an improved model of learning curves in this paper. The impact of cumulative installed capacity of biomass power and other factors on the cost of biomass technology were investigated. The results showed that installed capacity expansion has led to significant cost reduction. Meanwhile, the effect of economies of scale was observed in the analysis of generation cost. The ownership structure of the firm and the size of the developer had no influence on the learning effects and stronger policy support may, ironically, produce negative incentive effects on technology improvement.     

The 1000 GtC coal question: Are cases of vastly expanded future coal combustion still plausible?

Decades ago, prospects seemed strong for significantly expanded global coal consumption. Studies of energy futures depicted the full geologic extent of coal as a virtually unlimited backstop energy supply, drawing justification from legacy ratios of reserves-to-production (R-P) on the order of several centuries. Annual consumption and market prices for hard coal have doubled since 1990, providing an opportunity to recalibrate the next century's reference case with an empirically constrained outlook for this important industrial fuel source.Over the last two decades, improving knowledge of world coal deposits refined estimates of their recoverable portion, reducing assessed reserves by two-thirds. Coal supply costs during this period increased much faster than anticipated by models which mapped total geologic occurrences with long and flat supply curves. Consequently, underlying assumptions no longer hold for many multi-decade global energy reference cases depicting a rapid expansion of coal production – the conceptual framework for these scenarios needs revision. Energy system outlooks underlying pathways of future greenhouse gas (GHG) emissions provide a case study, since the climate change research community commonly uses business-as-usual scenarios with a strong carbon signal from coal combustion many times higher than current reserve estimates.In this paper, we explain why vast expansion in 21st-century coal consumption should not be used to describe any plausible reference case of the global energy future. Illustrating coal as a practically unlimited backstop supply is inconsistent with the current state of coal markets, technology, and reserve estimates. Future coal production faces many uncertainties, but the key uncertainty for long-term scenarios is the recoverable portion of reserves, not how many total geologic resources will eventually become reserves.     

How does coal price drive up inflation? Reexamining the relationship between coal price and general price level in China

Due to the coal-dominated energy structure, China is currently facing significant economic uncertainties brought forward by instability of coal price. By separating the asymmetric effects that how upward and downward coal price changes pass through to the economy, this paper reexamines the relationship between coal price and general price level in China. The asymmetric effects are investigated via vector autoregression models, Granger Causality tests, and impulse response function analyses using the monthly time series data from Jun-98 to Sep-14. Results show negative coal price change presents more significant impact on inflation than positive one. The inflation responses very abruptly to coal price shock in the short run, but the impact regresses rapidly along time. Accumulatively, a 1% increase of coal price will push CPI and PPI up by 0.04% and 0.12%, while a 1% decrease of coal price will pull them down by 0.08% and 0.17%, respectively. The linkage among coal price change, PPI, and CPI is demonstrated as the main transmission channel of price shock. The inflationary effect is strong in the initial stage, but will be weakened in the later stage since the pass through effect from PPI to CPI is tiny, which confirms PPI is more responsive than CPI to coal price change. For policy implications, how to avoid extreme volatility in general price level is a major concern of recent agendas such as reforming energy market and building green fiscal system.     

The roles of inter-fuel substitution and inter-market contagion in driving energy prices: Evidences from China’s coal market

Coal has been dominating energy supply and consumption in China, with the country becoming the largest energy supplier and consumer worldwide. Due to inter-fuel substitution of crude oil and inter-market contagion of international coal market, China's coal price might be interrelated with crude oil price and international coal price. However, the precise roles of these two effects in determining China's coal price are unknown. This paper contributes to previous literature by investigating this issue. We find that co-movements between China's coal price and crude oil price largely hinge on the shares of oil and coal in China’s energy mix, while its co-movements with international coal price depend on scales of coal trade. Inter-fuel substitution dominated the interaction of China's coal market with other energy types, but the importance of inter-market contagion has been increasing. We also find that China might have become an originator for driving the returns of crude oil and international coal, in particular after 2008. Furthermore, China's coal market is still a net volatility recipient for shocks from both crude oil market and international coal market. Given the increased integration of global energy markets, we anticipate this paper to provide a better understanding on the dynamic changes in China's coal prices.     

Economic analysis of coal price–electricity price adjustment in China based on the CGE model

In recent years, coal price has risen rapidly, which has also brought a sharp increase in the expenditures of thermal power plants in China. Meantime, the power production price and power retail price have not been adjusted accordingly and a large number of thermal power plants have incurred losses. The power industry is a key industry in the national economy. As such, a thorough analysis and evaluation of the economic influence of the electricity price should be conducted before electricity price adjustment is carried out. This paper analyses the influence of coal price adjustment on the electric power industry, and the influence of electricity price adjustment on the macroeconomy in China based on computable general equilibrium models. The conclusions are as follows: (1) a coal price increase causes a rise in the cost of the electric power industry, but the influence gradually descends with increase in coal price; and (2) an electricity price increase has an adverse influence on the total output, Gross Domestic Product (GDP), and the Consumer Price Index (CPI). Electricity price increases have a contractionary effect on economic development and, consequently, electricity price policy making must consequently consider all factors to minimize their adverse influence.     

What are the resource benefits of circulating fluidized bed power generation technology? Take some key thermal power units in China as an example

Efficient use of natural resources is an important part of China's energy industry to achieve sustainable development. The promotion of circulating fluidized bed (CFB) boilers is an important way to save coal and other resources from the source. This article first analyzes the connotation of resource benefits generated by CFB boilers. From the perspective of CFB technology used for low-calorific value coal recycling, coal recovery rate and sustainable development of coal resources (mainly coal can extend mining time), the resource benefits obtained by CFB are analyzed. The resource benefits obtained were analyzed. Second, based on the input-output nonlinear optimization theory, aiming at maximizing the resource benefits of CFB technology, constructing a CFB technology resource benefit nonlinear optimization model, measuring output benefits-added value, that is, the extension time of coal years and coal mining recovery rate increased value. Finally, based on the installed capacity data of China's CFB technology units from 1990 to 2015, the model designed two scenarios for China's future CFB technology development, and predicted China's 2020 CFB machine assembly capacity and power generation. On this basis, by analyzing the degree of coal resource conservation and the extension of the exploitable years, the model derives the resource benefits generated by CFB technology under different scenarios and the impact on the sustainable development of China's coal resources. These conclusions provide a quantitative basis for China's future CFB technology development.     

Impacts of renewable energy regulations on the structure of power generation in China – A critical analysis

China is facing a number of energy-related challenges such as shortage of electricity supply and environmental pollution. The Government recognized the important role the renewable energy plays in the power generation structure. As a result, a series of supporting policies, laws and regulations have been issued to boost the renewable energies in China. This paper provides a critical analysis of the policy framework for the renewable energy in China and its impacts on the power generation structure. The relevant policy documents, including the most recent government work report delivered by Premier Wen Jia-bao during the Third Session of the 11th National People’s Congress (NPC) in March 2010 are analyzed. The patterns of renewable energy developments are found strongly correlated with the promulgation of relevant policies.