Price Mechanism Evolution, Problems and Countermeasures of Wind Power Generation in China

Abstract

After thirty years of rapid development in China’s wind power industry, the total installed capacity and installed capacity growth rate of the industry have become the world's first, but the generation of the wind power in China accounted for only 4% of the total electricity supply. Wind power generation still has a huge space for development and it also faces serious problems in development process, such as abandonment phenomenon. How to use the price mechanism to promote wind power consumption has become an important issue in the development of wind power in China. This paper focuses on revealing some serious problems, such as pricing the wind power with no consideration of the environmental cost, no dynamic adjustment, no multilateral trading and no guiding role in consumption, etc. The article proposes to establish a green certificate trading platform where we can use the market forces to internalize positive externalities of renewable energy, reduce the cost of wind power generation, let the pricing mechanism plays discriminatory function, meet the diverse needs of the demand side, solve the consumptive problem of wind power and finally promote the healthy development of wind power industry.