Research on the Subsidy Policy of Wind Energy Price in Shandong Province Based on CGE Model

Abstract

In recent years, with the improvement of wind power generation technology and industrial upgrading, China's wind power generation manufacturing and application scale ranks among the top in the world. Technological advances in these related fields have reduced costs, making renewable energy an important area of the energy transition. At present, renewable energy mainly includes wind, solar and biomass energy. Among them, wind energy has the advantages of wide sources, low cost, advanced energy capture and conversion technology and equipment, which make it has been applied in many places on a large scale. By contrast, due to the difficulty of material recovery and high cost, the large-scale application of biomass energy is limited. Meanwhile, the production of solar panels is characterized by high pollution and high energy consumption, which is not environmentally friendly and limits its industrial expansion. Therefore, this research will focus on wind power price related policies in Shandong Province. In this paper, a Computable General Equilibrium (CGE) model of renewable energy policy according to the current development in Shandong Province was first built. Then, by simulating the increase of wind energy electricity price subsidies by 5%, 10%, 15%, 20%, 25%, 30% compared with the base year, the effects of electricity price subsidies on energy, economics, social and environment were further analyzed. Finally, suggestions were proposed which can provide a reference for the promotion and development of wind energy in Shandong Province.