Search

Renewable Portfolio Standards (RPS) and carbon emission trading (CET) system are the top-level system design of China's energy low-carbon transformation, which have great strategic significance for realizing the "carbon peak in 2030 and carbon neutrality in 2060". At present, China's tradable green certificates market and CET market are still in the initial stage. The implementation single system may have diverse trials and errors in its initial stage, and the market activity and transaction frequency are low. Therefore, this paper aims to explore whether the synergistic effect between the two systems can effectively promote China's energy low-carbon transformation. This paper establishes the system dynamic model of the synergistic effect between the RPS and CET in China's electricity market to reveal the influence mechanism and the synergistic effect. The results show that: (1) There is a positive synergistic effect between the RPS and CET, which will change with the institutional parameters. (2) The simultaneous implementation of the RPS and CET can effectively stimulate market vitality and promote the development of the renewable energy industry. (3) Higher quota and lower benchmark price can optimize power source structure, and improve social welfare and institutional performance. [ABSTRACT FROM AUTHOR]

To achieve the carbon peaking and carbon neutrality goals, China promoted county-wide photovoltaic projects (CWPVs) in 2021. A large number of distributed photovoltaic (DPV) installations have expanded the scale of prosumer. It also brings the inequity problem of prosumer, distribution network system operator (DSO) and consumer--DSO and consumer bear the costs such as access cost and depreciation of stock investment caused by DPV access. Combined with China's current electricity tariff system and the promotion of photovoltaic scale development, this paper proposes a standby fee model based on the principle of "beneficiary apportionment". In this model, the standby fee mechanism for self-owned power plants is applied to DPV to reduce the implementation cost of the mechanism, and the principle of "beneficiary apportionment" is adopted to ensure the profitability of DPV. This paper takes the CWPV in Hunan Province, China as an example, calculates the standby fee under various electricity metering methods, and determines the most appropriate standby fee by considering factors such as output uncertainty of DPV. Finally, the difficulties in the implementation of standby fee are sorted out. [ABSTRACT FROM AUTHOR]

The fundamental way for China to achieve carbon peak and carbon neutrality is to continuously improve the penetration of renewable energy (RE) in the power system and establish an electricity mix dominated by RE power. According to China's 14th Five-Year Plan, the proportion of non-fossil energy power generation should reach about 39% by 2025. However, the impact of the increase in share of RE power on carbon emissions of the electricity sector remains to be estimated. To this end, the purpose of this paper is to capture the nonlinear characteristics of RE on electricity-related carbon emissions by using panel smooth transition regression (PSTR) model and provincial panel data covering the period 1991–2020 under the background of provincial RE quota system. The estimation results indicate that, (i) in the four transition variables of PSTR model such as the installed capacity of power generation, substation equipment capacity, total electricity consumption and total power generation, the nexus between RE deployment and electricity-related carbon emissions was detected as nonlinear. (ii) The heterogeneous RE carbon abatement effect is reflected in its increasing penetration in provincial power systems. (iii) Carbon abatement performance of RE generation decreases in the negative range with the increase of transition variables. (iv) The estimation coefficient of RE is positive at the higher value of the transition variable in the PSTR model of carbon emissions per capita. As a result, the RE quota with the best emission abatement performance should be designed based on the provincial power resource endowment and the medium and long-term expected electricity consumption. [ABSTRACT FROM AUTHOR]

Accurate short-term prediction of bioenergy power generation structure can optimize the bioenergy structure and help achieve carbon neutrality. However, there are currently few related studies, and most of them present long-term predictions on the development potential of bioenergy, which cannot meet the modeling requirements of predicting structure. Hence, the Fractional-order-accumulation grey Compositional data Model with Particle swarm is proposed in this paper (PFCM (1,1)) for forecasting bioenergy power generation structure. The proposed model satisfies the modeling requirements by introducing the fractional accumulation operator to ensure the prediction accuracy, and constructing the spherical mapping space to reduce the data dimension. The empirical studies prove that the newly developed model performs better than other models, which is successfully employed to predict bioenergy power generation structure of China for 2020–2024. The results show that the share of renewable municipal waste in bioenergy power generation will exceed that of solid biofuels by 2023 and the share of biogas power generation has not changed much. Furthermore, although the total amount of bioenergy power generation in China is growing rapidly, unbalanced development and small share of power are two important challenges. [Display omitted] [ABSTRACT FROM AUTHOR]

The renewable portfolio standard (RPS), a national policy tool to encourage the progress of renewable energy (RE), aids in the optimization of China's energy structure and the achievement of carbon peaking and carbon neutrality objectives. However, each province's implementation impact varies during the policy-implementation process, and various factors influence the implementation impact. So, this paper constructs a multi-market coupled system dynamics model of the power market, consumption above quota (CAQ) market, and tradeable green certificate (TGC) market to analyze the inner action mechanism of RE consumption and provide policy planning for effectively promoting RPS implementation. The results show that (1) Appropriately raising the RPS quota goal or accelerating the development of RE technology or raising the benchmark price of TGC all promote the growth of installed RE capacity and RE development. (2) Increasing RPS quota targets or fines can stimulate market consumption demand while achieving responsibility for consumption, effectively promoting CAQ and TGC market transactions and further promoting RE consumption. (3) Simultaneously raising the RE quota targets, accelerating the development of RE technologies, and standardizing the management of TGC's benchmark prices would be more conducive to promoting the consumption of RE electricity and advancing the development of RE. [ABSTRACT FROM AUTHOR]

To achieve the goal of "carbon peaking and carbon neutrality", China is vigorously developing renewable energy. This paper aims to examine the major contributors to regional inequality in renewable energy consumption by analyzing the 30 provinces in China. We have analyzed the inequality of China's renewable energy consumption with Dagum Gini coefficient, and then use the Generalized Divisia Index Model (GDIM) to decompose the influencing factors contributing to the inequality of renewable energy consumption. The main conclusions are summarized as follows: First, renewable energy consumption was higher in the western region than in the central and eastern regions, and the regional inequality in renewable energy consumption have increased over time. Second, the study reveals that inter-group disparity is the primary source of regional inequality in renewable energy consumption in China. Third, at the national level, the results of the GDIM decomposition show that economic development continues to rely on fossil energy consumption, which negatively impacts the low-carbon transition of energy. Given China's complex geographical conditions, it is crucial for different provinces to develop their own strategies for renewable energy development, taking into account unique resources and challenges. [ABSTRACT FROM AUTHOR]

The China Certified Emission Reduction scheme (CCER) and the Cap-and-Trade (CaT) mechanisms jointly constitute the Emission Trading Scheme (ETS), which is expected to have a profound impact on China's social and economic decarbonization. However, previous studies have primarily focused on the impact of the CaT mechanism, neglecting the fact that CCERs serve as a carbon offset trading mechanism. This paper focuses on the impact of the CCER mechanism on China's energy economy and environment by constructing a recursive dynamic computable general equilibrium model that couples CaT and CCER mechanisms. Introducing the CCER mechanism based on the CAT mechanism leads to increased output and reduced prices in renewable energy sectors, cascading positive effects across various energy-utilizing sectors to counter the decline in Gross Domestic Product (GDP) and residential welfare. The finding suggests that China's unique CCER mechanism is poised to play a more important role in promoting renewable energy to mitigate global warming, given its potential to transform the structure of energy production and consumption. Finally, targeted policy recommendations are proposed for implementing the CCER mechanism. [ABSTRACT FROM AUTHOR]

The China Certified Emission Reduction scheme (CCER) and the Cap-and-Trade (CaT) mechanisms jointly constitute the Emission Trading Scheme (ETS), which is expected to have a profound impact on China's social and economic decarbonization. However, previous studies have primarily focused on the impact of the CaT mechanism, neglecting the fact that CCERs serve as a carbon offset trading mechanism. This paper focuses on the impact of the CCER mechanism on China's energy economy and environment by constructing a recursive dynamic computable general equilibrium model that couples CaT and CCER mechanisms. Introducing the CCER mechanism based on the CAT mechanism leads to increased output and reduced prices in renewable energy sectors, cascading positive effects across various energy-utilizing sectors to counter the decline in Gross Domestic Product (GDP) and residential welfare. The finding suggests that China's unique CCER mechanism is poised to play a more important role in promoting renewable energy to mitigate global warming, given its potential to transform the structure of energy production and consumption. Finally, targeted policy recommendations are proposed for implementing the CCER mechanism. [ABSTRACT FROM AUTHOR]

Solar energy has expanded rapidly in recent years, and China is the largest market in terms of installed capacity. With the aim of achieving carbon neutrality by 2060, solar power will play an increasingly important role in China. However, like many other countries, the low energy density of solar photovoltaics is one of the major drawbacks of its further development. The emergence of floating photovoltaic systems (FPV) can not only break this threshold but also generate a series of cobenefits from a brand-new energy-land-water nexus perspective. Using a GIS-MCDA model, an evaporation model, combined with a cost-benefit analysis, this paper estimates the development potential of FPV in China, and its energy-land-water cobenefits are further analyzed. Moreover, to reveal the current land constraint for developing solar photovoltaics in China, the potential of traditional terrestrial solar photovoltaics has also been evaluated. The results show that the potential installed capacity of FPV in China can reach 705.2 GW–862.6 GW with an annual 1164.9 TWh to 1423.8 TWh of potential power output, and most potential FPV stations can obtain positive financial returns. The annual water evaporation reduction is approximately 5.8 km3. In the meantime, around 7117.3 km2 of the land could be conserved, which would alleviate the land constraint for terrestrial solar photovoltaic systems, especially in the highly urbanized eastern and southern coastal areas in China. [ABSTRACT FROM AUTHOR]

Exploring the relationship between government subsidies, market competition, and the total factor productivity (TFP) of new energy enterprises will help countries optimize renewable energy support policies in the context of carbon neutrality constraints and energy demand growth. Based on the panel data of 145 listed new energy enterprises from 2007 to 2020, this paper investigates how government subsidies affect the TFP of new energy enterprises and the moderating effects of market competition. Our main findings are as follows: (1) Government subsidies positively affect the TFP of new energy enterprises. Heterogeneity analysis suggests that government subsidies have a larger effect on the TFP of non-SOEs, midstream and upstream enterprises, and smaller enterprises. (2) Industry market competition negatively moderates the effect of government subsidies on TFP, while enterprise competition power has a positive moderating effect. The marginal effect of government subsidies is significantly positive only when the industry market competition is below a certain threshold or the enterprise competitive power exceeds a certain threshold. (3) Government subsidies enhance the TFP by promoting invention and utility model innovation of new energy enterprises. In addition, market competition significantly moderates the relationship between government subsidies and utility model innovation, thereby moderating the marginal effect of government subsidies on TFP. The findings contribute to a better understanding of the relationship between government support, market competition, and new energy development. [ABSTRACT FROM AUTHOR]