How dynamic renewable portfolio standards impact the diffusion of renewable energy in China? A networked evolutionary game analysis

Abstract

Renewable portfolio standard is an effective administrative tool to guide the behavior of electricity producers and impact the renewable energy diffusion. However, currently the renewable energy quota is generally set to be static and the efficiency is limited. In this paper, we proposed a dynamic renewable portfolio standard policy and we aimed to analyze how it will impact the renewable energy diffusion in China. The connections between electricity producers were simulated under both the perfectly competitive market and monopoly market. And a networked evolutionary game approach is applied considering dynamic linking between the electricity producers. The results show that dynamic quota policy is effective in promoting the proportion of wind power generation from 20% to 59.17% and promoting the proportion of solar power generation from 20% to 79.25%. With the sensitivity analysis, we found that renewable energy quota and the on-grid price are the most influential parameters. The proportion will reach 76.47% if quota is 0.7 and 68.1% if on-grid price is 630 Yuan/MWh. And the influence of tradable green certificate prices and generation cost is limited in promoting renewable energy diffusion. This paper offers the Chinese government a potential implementation for the perfection of national renewable energy diffusion.