Abstract
Renewable energy is now the world’s most reliable and sustainable solution to environmental pollution, the energy crisis, and social sustainability. In order to regulate renewable energies and ensure the sustainable development of renewable energy in China, a regulatory framework is imperative. Electricity demand and supply forecasting have become one of the most important topics for research on sustainable solutions to energy issues. This article analyzes the Chinese electric power industry structure by looking at historical electricity demand and supply data. This study shows how a divergent set of energy policies can facilitate the application of renewable energy to China’s electric power sector. The analysis shows that in 2020, China’s electricity generation and consumption increased by 0.9 and 1.3 percent annually, respectively, producing capacity of power plants increased by 5.6 GW, coal consumption of power supply decreased by 4.3 g/kWh, power generation projects investment increased by 51.6 billion RMB, power grid projects investment decreased by 1.8 billion RMB, and newly installed generation capacity increased by 769 GW year on year (YOY). During the first three quarters of 2021, the generation, consumption and coal consumption of electricity increased respectively by 10.7 and 12.9%, the generating capacity of power plants increased by 9.4 GW, the average coal consumption of power supply decreased by 0.9 g/kWh, power generation projects investment increased by 1.8 billion RMB, while power grid projects investment decreased by 0.3 billion RMB and new generation capacity added around 20.16 GW compared to the same period last year. Furthermore, domestic power consumption grew by 6.0% and 7%, respectively, in 2020–2021. The paper examines China’s current climate, developments, and renewable energy targets between 2020 and 2021. This research aims to identify the main risks associated with China’s renewable energy development and propose a few policy measures for risk management.
Highlights
IntroductionAccording to references [2,3], research on the relationship between renewable energy, low-carbon development, energy supply security, and carbon taxes has gained momentum due to policies and the maturation of renewable energy markets
Due to their high effectiveness, renewable energy subsidies mitigated market failures associated with these technologies
Electricity generation and consumption in China increased by 0.9 and 1.3 percent, respectively, in 2020, producing capacity of power plants increased by 5.6 GW, coal consumption of power supply decreased by 4.3 g/kWh, power generation projects investment increased by 51.6 billion RMB, power grid projects investment decreased by 1.8 billion
Summary
According to references [2,3], research on the relationship between renewable energy, low-carbon development, energy supply security, and carbon taxes has gained momentum due to policies and the maturation of renewable energy markets. Scholars anticipate that the government will implement a package of policies for achieving a sustainable low-carbon future. In Kalkuhla et al [4], a global general equilibrium model was used to evaluate optimal policies using various policy instruments, including carbon taxes and renewable energy subsidies. The results showed that even very small deviations from the second-best subsidy could cause significant emissions and consumption losses. Due to their high effectiveness, renewable energy subsidies mitigated market failures associated with these technologies
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