Abstract
The structural distortion of the power supply in China has resulted in the dilemma of the coexistence of power overcapacity and peak power gap, which is caused by insufficient compensation to the peaking resources due to irrational power market mechanisms. This study employs a screening curve model to clarify the positions of various power resources in Shandong Province. The study finds that Shandong's peak load should be met by life-extended coal units and demand response, which could save 23.44 billion yuan annually. With an extension in peak-load duration, the supply mix becomes more economical and feasible.
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