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Time-of-use pricing in retail electricity markets implies that wholesale market scarcity becomes easily communicated to end consumers. Yet, it is not well-understood if and how the price formation process in retail electricity markets will help to reward the demand for operational flexibility due to growth in intermittent generation. To contribute to this discussion, this paper develops a partial equilibrium model of the retail electricity market calibrated to Chinese data. The paper finds that tariffs in this market may not be significantly suppressed by growth in near-zero costs renewable sources when controlling for flexibility restrictions on thermal generation assets and when a significant curtailment of variable renewable resources exists in the market. In addition, it shows that the price formation process in retail electricity markets which controls for flexibility restrictions on thermal generation while allowing for consumers to respond slowly to price changes is a feasible strategy to reward the demand for operational flexibility. Finally, the paper reveals that while integrating intermittent generation beyond levels which the available storage capacities can accommodate may result in losses to producers, benefits to consumers may offset these losses, leading to overall welfare gains. [ABSTRACT FROM AUTHOR]

Achieving Sustainable Development Goal 7 (SDG 7) and SDG 13 together requires a holistic and integrated approach to simultaneously address the challenges of clean energy and climate action. In order to find integrated policy strategies, this study offers a comparative analysis using the case of China and the world regarding energy access, energy intensity, clean cooking, renewable energy, global warming gases, and investment in energy by the private sector to advance SDGs 7 and 13, applying a principal component regression (PCR) and forecasting models for the period 1990 to 2021. Overall, these findings indicate that China is making significant progress towards meeting the goals of the Paris Agreement. This progress is evident in the notable variations observed in key variables such as access to clean cooking solutions, private sector investments in energy, renewable energy generation, and enhanced energy efficiency. In contrast, the global landscape exhibits only minimal fluctuations in these aspects within its framework. The PCR proves that all the components are significant regarding China, whereas, for the world, seven components are significant out of eight. Furthermore, the global temperature projection indicates that the world is nearing the 1-degree Celsius threshold, with the current temperature standing at 0.558 degrees Celsius. This suggests that the goal of limiting global warming to 1.5 degrees Celsius by 2030 remains attainable. Notably, China's projected average temperature for 2030 is 7.2 degrees Celsius, marking a 12% decrease from the 2021 temperature level. This trajectory aligns with China's commitment to achieving the 1.5-degree Celsius target by 2030. This study makes a valuable contribution to the field of energy transition, offering insights into the path to maintaining global warming at 1.5 degrees Celsius as stipulated by the Paris Agreement by 2030. [ABSTRACT FROM AUTHOR]