Article
Economics
Chang Wang, Yue Guo, Yu Yang, Shiyi Chen
Summary: This paper examines the effects of ownership mixing and vertical unbundling on the SO2 emission intensity of electricity generation firms. The study finds that ownership mixing not only improves access to electricity and generation efficiency, but also significantly reduces firms' air pollution intensity. On the other hand, vertical unbundling has no significant effects on firms' air pollution. These findings provide an effective and environmentally friendly pathway for electricity industry restructuring in developing countries.
Article
Economics
Hao Chen, Jian Cui, Feng Song, Zhigao Jiang
Summary: Addressing the efficiency-equity-environment trade-off is important for electricity sector reform. This study quantifies the economic, distributional, and environmental effects of marketization and integration in China's electricity market. The findings suggest that establishing provincial markets can lead to potential welfare improvement of 14.3 billion yuan, which can be further increased to 21.0 billion yuan by integrating the provincial markets into a regional market. The regional market performs better in terms of overall efficiency gains and environmental outcomes, but worse in addressing equity concerns.
Article
Economics
Xuemei Zheng, Flavio Menezes, Rabindra Nepal
Summary: The study found that the 2015 reform had impacts on the prices and reliability of China's electricity sector, especially on the prices of electricity generated from thermal energy and overall average retail prices. Additionally, the reform increased technical efficiency but had no impact on the line loss rate of electricity transmission.
Article
Economics
Ying Qu, Yunpeng Xiao, Xiuli Wang, Xifan Wang, Yi Lu, Jianglong Li
Summary: The rapid development of China's electricity industry reform has witnessed the establishment and trial operation of electricity spot markets, which has some special features in the offering behaviors of generators. This necessitates an in-depth study on the causes and potential modifications in the market mechanism. This paper presents an equilibrium analysis model and proposes modifications considering China's institutional and operational characteristics, demonstrating their feasibility and effectiveness through case studies.
Article
Economics
Victor Ajayi, Tom Weyman-Jones
Summary: This study examines the impact of deregulation and political support on the electric power industry in the US, finding positive effects on technical efficiency. Results suggest that restructuring and political support can significantly reduce technical inefficiency, providing compelling evidence for generation efficiency improvement through deregulation.
Article
Economics
Yang Liu, Zhigao Jiang, Bowei Guo
Summary: China plans to reform its electricity wholesale market by introducing a stable and reliable electricity spot market. This article assesses the effectiveness of China's electricity spot market using the case study of Guangdong's spot market pilot operations and rich ex-post market data. The study finds that the electricity supply curve becomes steeper when demand approaches the capacity limit, indicating the need for more thermal capacity to stabilize spot market prices. Additionally, evidence of local market power suggests the necessity of investing in more power lines connecting the west to the east.
Article
Economics
Selahattin Murat Sirin, Ercument Camadan, Ibrahim Etem Erten, Alex Hongliang Zhang
Summary: This paper aims to explore the motivations behind regulatory measures to address rising electricity prices. Based on a systematic review of literature on price spikes in electricity markets, we compare the recommended measures with actual political and regulatory actions taken during the 2021-22 European energy crisis. Our findings reveal a discrepancy between the theoretical arguments and the regulatory practices, highlighting the influence of political concerns on regulatory measures.
Article
Economics
Shashwat Kumar
Summary: The rise and spread of Independent Regulatory Agencies (IRAs) have brought credibility and efficiency to sectoral governance in developing countries. However, research has shown that regulatory decision-making is still influenced by political pressures. This article examines the case of the Indian electricity sector to explore how IRAs are establishing themselves decades after their establishment. The findings suggest that while IRAs have consolidated their decision-making role, it is not exactly as envisioned in the Electricity Act, 2003.
Article
Environmental Sciences
Yang Zhou, Zhengyu Shi, Libo Wu
Summary: China initiated a new round of electricity market reform since 2015, with the results showing that without green policy support, market share might flow to coal-fired power plants, leading to increased emissions. Therefore, policies should focus on promoting coal energy replacement to improve environmental outcomes.
JOURNAL OF ENVIRONMENTAL MANAGEMENT
(2021)
Article
Economics
Selahattin Murat Sirin, Ibrahim Erten
Summary: There is increasing price volatility and price spikes in electricity markets due to variable renewable energy generation, extreme weather events, and other factors. Regulatory authorities impose market price caps to protect consumers and prevent abusive supplier behavior. However, temporary price caps may be driven by political motives in weak institutional settings.
Article
Economics
Jian Cui, Feng Song, Zhigao Jiang
Summary: Emissions reduction in the electricity sector is crucial for China's carbon neutrality goal. This study assessed the impact of electricity market integration on the cost-effectiveness of carbon pricing in China. The regional market showed higher cost-effectiveness in reducing emissions compared to the provincial market, saving about 60% of abatement costs. However, the regional market may raise potential equity issues. The research findings improve policymakers' understanding of the interaction between carbon pricing and electricity market reforms, aiding in the coordination of effective designs for both markets and supporting China's carbon neutrality target.
CHINA ECONOMIC REVIEW
(2023)
Article
Economics
Anselm Eicke, Tim Schittekatte
Summary: Contrary to the uniform pricing within bidding zones in European power markets, nodal pricing in liberalized U.S. electricity markets has been increasingly considered as a potential solution due to its significant cost-saving benefits. However, the persistent opposition to nodal pricing in Europe is mainly based on perceived flaws of the concept, rather than practical justifications.
Article
Thermodynamics
Kang Gao, Yijun Yuan
Summary: Market-oriented reforms have played a crucial role in boosting China's economy, but the lag in the factor market has resulted in several disadvantages. This study investigates the impact of market-oriented reforms on industrial green development (IGD) by integrating labor, capital, and energy into a unified research framework and analyzing the distortion in the factor market. The findings suggest that distortions in the capital and energy markets have a significantly negative effect on IGD, while the impact of labor market distortion is not statistically significant.
Article
Green & Sustainable Science & Technology
Jinqi Liu, Jihong Wang, Joel Cardinal
Summary: This paper reviews the history of the UK electricity market evolution, explains the driving factors for reform, and analyzes the current trends in electricity market reform. Over the past decades, the UK electricity market has undergone significant reforms, and the integration of renewable energy sources and energy storage systems has become the latest trend in order to meet the government's emission targets.
RENEWABLE & SUSTAINABLE ENERGY REVIEWS
(2022)
Article
Energy & Fuels
Minghui Liu, Chunhua Ju, Ruting Huang
Summary: This paper evaluates the impact of market power of grid companies on service quality in China using provincial data from 2004 to 2017. The findings show that higher market power reduces electricity reliability, and renewable energy integration has negative effects. The results also highlight regional heterogeneity. The study provides useful lessons for other developing countries aiming to improve the electricity supply chain.
FRONTIERS IN ENERGY RESEARCH
(2022)
Article
Materials Science, Multidisciplinary
L. Aquino-Meneses, R. Lozada-Morales, P. del Angel-Vicente, J. C. Percino-Picazo, O. Zelaya-Angel, M. Becerril, J. Carmona-Rodriguez, F. Rodriguez-Melgarejo, S. Jimenez-Sandoval
JOURNAL OF MATERIALS SCIENCE
(2014)