Abstract
China officially implemented the renewable portfolio standard (RPS) on 1 January 2019, and it remains uncertain as to whether this can effectively solve the problem of renewable energy consumption in China and ease the pressure of government subsidies. In order to study the impact of this policy on China’s renewable energy power generation and explore RPS policy that is more suitable for the characteristics of China’s renewable energy, we first develop a revenue function model based on the just released RPS policy to explore the effectiveness of the policy, the feasibility conditions for successful implementation, and the problems that may be encountered during the implementation process. Then, we propose policy recommendations based on the possible problems of the current policy and design an “incremental electricity price” supplementary policy to improve the possibility of successful implementation of the RPS policy. Finally, an evolutionary game model is established to simulate and verify the possibility of successful implementation of the supplementary policy. The main research results are: (1) the essence of the current RPS policy is the comprehensive implementation policy of the RPS and feed-in-tariff (FiT); (2) because of the characteristics of China’s energy structure, the implementation of this policy reform is more resistant; (3) the quantitative research on the revenue function model shows that the current transaction price of the green certificate market is very low, which is not conducive to alleviating the state’s subsidy pressure on renewable energy power generation; and (4) analysis of empirical data shows that the successful implementation of the “incremental electricity price” policy relies on the initial strategies of grid companies and users.
Highlights
IntroductionThe promotion of renewable energy power generation is conducive to emission reduction and environmental protection, and is an important way to achieve low-carbon energy transformation [2]
Taking the renewable portfolio standard (RPS) policy as the research object, this paper explored the effectiveness, feasibility conditions, and possible problems of the RPS policy in promoting renewable energy consumption and alleviating the government’s pressure on renewable energy power generation subsidies by establishing a revenue function model
Aiming at resolving the possible problems in the implementation of the RPS policy, specific suggestions and an improvement scheme were proposed, and the possibility of implementing the improved scheme was verified by establishing an evolutionary game model
Summary
The promotion of renewable energy power generation is conducive to emission reduction and environmental protection, and is an important way to achieve low-carbon energy transformation [2]. Many countries have already developed plans to use renewable energy to generate electricity for the large-scale utilization of renewable resources in the few years [3]. Due to the high cost and instability of renewable energy power generation, it is less competitive than traditional fossil energy power generation [4,5]. For this reason, countries around the world have implemented different renewable energy power generation support policies to solve the problem. Feed-in-tariff (FiT) and renewable portfolio standard (RPS) are the two most important
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