Large-scale utilization of wind power in China: Obstacles of conflict between market and planning

B-Tier
Journal: Energy Policy
Year: 2012
Volume: 48
Issue: C
Pages: 222-232

Authors (3)

Zhao, Xiaoli (中国石油大学(北京)) Wang, Feng (not in RePEc) Wang, Mei (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The traditional strict planning system that regulates China's power market dominates power industry operations. However, a series of market-oriented reforms since 1997 call for more decentralized decision-making by individual market participants. Moreover, with the rapid growth of wind power in China, the strict planning system has become one of the significant factors that has curtailed the generation of wind power, which contradicts with the original purpose of using the government's strong control abilities to promote wind power development. In this paper, we first present the reasons why market mechanisms are important for large-scale utilization of wind power by using a case analysis of the Northeast Grid, and then we illustrate the impact of conflicts between strict planning and market mechanisms on large-scale wind power utilization. Last, we explore how to promote coordination between markets and planning to realize large-scale wind power utilization in China. We argue that important measures include implementing flexible power pricing mechanisms instead of the current fixed pricing approach, formulating a more reasonable mechanism for distributing benefits and costs, and designing an appropriate market structure for large-scale wind power utilization to promote market liquidity and to send clear market equilibrium signals.

Technical Details

RePEc Handle
repec:eee:enepol:v:48:y:2012:i:c:p:222-232
Journal Field
Energy
Author Count
3
Added to Database
2026-01-29