Optimized allocation of renewable energy quota in Chinese provinces

Abstract

A fair and efficient renewable energy quota allocation scheme is essential for China to implement the Renewable Portfolio Standards policy. Therefore, based on the principles of fairness and efficiency, this paper comprehensively considers the differences among provinces and then proposes and adopts an improved zero-sum gains data envelopment analysis method to reallocate quotas. Furthermore, for verifying the superiority of the proposed method, this paper establishes a composite index based on the Gini coefficient and the Theil index to compare the rationality of the distribution results. Finally, this paper discusses the relevant advice for the development of renewable energy. The results validate that the proposed method is superior to the traditional method. Additionally, according to the final quota distribution scheme, there are fewer renewable energy quotas in the northern provinces and more in the southern provinces. The quota of most provinces is lower than 50 × 109 kWh, while Guangdong, Sichuan, Yunnan, Jiangsu, and Hunan are the five provinces with the most renewable energy quota of over 100 × 109 kWh. In general, this study provides a more rational renewable energy quota redistribution approach, which will help the government to establish an efficient and fair mechanism of renewable energy quota allocation.