Article
Energy & Fuels
Dong-xiao Yang, Ya-qiang Jing, Chan Wang, Pu-yan Nie, Peng Sun
Summary: This paper examines the effects of uncertainty on renewable energy production and policies, revealing that feed-in tariff (FIT) has a better incentive effect, while renewable portfolio standard (RPS) offers higher production and profit stability. It is observed that at low cost stages, the intensity of both policies is directly proportional to renewable energy output.
ENERGY STRATEGY REVIEWS
(2021)
Article
Economics
Shiwei Yu, Shuangshuang Zhou, Yao Dai, Junjie Zhang
Summary: Given the separation between China's renewable energy supply and load areas, the transmission capacity across regions is limited, hindering the penetration of renewable energy. This is directly influenced by policies such as renewable portfolio standard (RPS) and feed-in tariff (FIT). A multi-objective optimization model was developed to assess the impacts of changes in RPS and FIT policies on transmission line layout. The study found that strengthening power transmission in certain directions and increasing the RPS target can lead to the construction of more transmission lines, while continuing the FIT subsidy beyond 2020 may decrease the demand for new line construction. Ultimately, high penetration of renewable energy in China can be achieved.
Article
Thermodynamics
Libo Zhang, Changqi Chen, Qunwei Wang, Dequn Zhou
Summary: This paper explores the impact of FIT reduction and the introduction of RPS on DPVG development in China. FIT reductions have a short-term negative effect on DPVG installations, but can be gradually reduced without sacrificing the grid parity goal. After FITs are cancelled, RPS can effectively help continue the trend towards grid parity.
Article
Green & Sustainable Science & Technology
Zhuojia Dong, Xianyu Yu, Ching-Ter Chang, Dequn Zhou, Xiuzhi Sang
Summary: The interaction and evolution of China's Feed-in Tariff (FIT) and Renewable Portfolio Standard (RPS) in promoting the healthy development of renewable energy were studied. The study found that introducing a tradable green certificate market in an orderly manner could replace FIT as the main policy, and it is essential to formulate reasonable incentive and penalty mechanisms.
Article
Green & Sustainable Science & Technology
Wang Bangjun, Zhaolei Feng, Ji Feng, Pan Yu, Linyu Cui
Summary: Replacing the FIT policy with the RPS policy has become a global trend in the reform of renewable energy policy systems. This study establishes a real option model for photovoltaic power generation projects and examines the sequential decision making regarding optimal investment opportunities, installed capacity, and phased investment. The findings indicate that phased investment offers greater flexibility, longer lifespan, higher project values, and reduced risks for investors. Lower technical costs and higher TGC prices are beneficial for acquiring optimal investment opportunities. This study contributes to better decision making in photovoltaic power generation projects and highlights the influence of the RPS policy.
Article
Engineering, Electrical & Electronic
Youngdong Kim, Kyungdoh Kim, Hyesung Seok
Summary: The share of renewable energy has surpassed nuclear power in the UK, Germany, and Japan, but South Korea lags behind. In 2011, South Korea replaced feed-in-tariffs with renewable portfolio standards (RPSs), which require electricity producers to supply a percentage of renewable energy. This study investigates the effectiveness and fairness of RPSs, and proposes a new bidding model that considers fairness.
JOURNAL OF ELECTRICAL ENGINEERING & TECHNOLOGY
(2023)
Article
Engineering, Chemical
Amjad Ali, Fahad A. Al-Sulaiman, Ibrahim N. A. Al-Duais, Kashif Irshad, Muhammad Zeeshan Malik, Md Shafiullah, Md Hasan Zahir, Hafiz Muhammad Ali, Sheraz Alam Malik
Summary: Saudi Arabia has set a target to deploy 58.7 gigawatts of renewable energy by 2030, and the renewable portfolio standard (RPS) may play a significant role in achieving this goal.
Article
Thermodynamics
Xianyu Yu, Shengxian Ge, Dequn Zhou, Qunwei Wang, Ching-Ter Chang, Xiuzhi Sang
Summary: This paper analyzes the impact of photovoltaic policies on the government and photovoltaic firms through an evolutionary game model and a system dynamics model. The renewable portfolio standards policy has advantages over the feed-in tariff policy, but its incentive measures need improvement. Stakeholders' willingness and subsidy price significantly affect the trading volume of tradable green certificates, while the social welfare of photovoltaic firms is mainly related to the subsidy price. The total amount of government cash subsidy is smaller than the social effect, emphasizing the need for appropriate renewable energy support policies for promoting photovoltaic development and economic growth.
Article
Thermodynamics
Sima Amiri-Pebdani, Mahdi Alinaghian, Hossein Khosroshahi
Summary: In order to stay competitive, power companies need to develop technologies to improve electricity supply reliability and achieve sustainable development goals in addition to price competition. This paper investigates energy pricing in an electricity supply chain with renewable and conventional electricity producers and a distribution grid, with a focus on enhancing supply reliability and meeting sustainable development goals. The study uses game theory to model government intervention in the electricity market through subsidization and Renewable Portfolio Standard (RPS) strategies. Three investment scenarios for improving reliability are considered, with producers determining wholesale prices and the distribution grid setting prices for low-and-high-load periods. The results indicate that the optimal subsidy and RPS rates depend on the government's priorities regarding environmental effects, government revenue, and social welfare. Scenario two is found to be the most beneficial for improving supply reliability and achieving social welfare and environmental goals, while prioritizing social welfare maximization policy is advantageous for producers' profit, the distribution grid, and supply reliability improvement.
Article
Economics
Yimeng Du, Teng Ma
Summary: By examining the impacts of feed-in policies on renewable energy deployment, we find that the feed-in premium scheme encourages the integration of wind energy in the market, but discourages investment in solar power technologies. Fixed price feed-in policy provides greater investment security for solar power projects.
APPLIED ECONOMICS LETTERS
(2023)
Article
Economics
Jiaqian Wu, Yu Chen, Lean Yu, Guohao Li, Jingjing Li
Summary: This paper examines the impact of renewable energy policies on the construction of a new power system in China. Simulation results show that the demand-side renewable portfolio standards (DRPS) policy has positive effects on the costs of market participants, renewable energy consumption, the damage caused by thermal power generation, and long-term incentives for renewable energy industry investment, but lacks incentives for promoting the liquidity of Tradable green certificates (TGC) market. The combined FIT and RPS policy provides a transitional instrument to mitigate large volatility.
Article
Economics
Jie Sun, P. Zhou, Wen Wen
Summary: This study proposes an index to evaluate the adaptive capacity of Chinese provinces to renewable portfolio standard policy and finds disparities among them. The research emphasizes the importance of setting quota targets based on local energy conditions and adaptive capacity.
Article
Economics
Andri D. Setiawan, Marmelia P. Dewi, Bramka Arga Jafino, Akhmad Hidayatno
Summary: Geothermal energy is crucial for meeting Indonesia's energy demand sustainably. The government has set ambitious targets for geothermal contributions to the national energy mix, but the implementation of the feed-in tariff (FIT) mechanism has faced challenges and undergone changes. This study combines policy analysis and system dynamics modeling to explore the effectiveness of FIT policies for geothermal development in Indonesia.
Article
Thermodynamics
Lijun Zeng, Jiafeng Wang, Laijun Zhao
Summary: This study develops an inter-provincial tradable green certificate (TGC) futures trading model that combines TGC futures with inter-provincial TGC trading, which provides an efficient and cost-effective mechanism to achieve the Chinese renewable portfolio standard (RPS) targets. The model significantly reduces the RPS target realization cost and increases renewable energy generation. Policy suggestions for the effective design of the TGC futures market and successful implementation of the RPS policy are proposed.
Article
Thermodynamics
Lijun Zeng, Wenjing Du, Wencheng Zhang, Laijun Zhao, Zhaohua Wang
Summary: The study proposes an inter-provincial cooperation model (ICM) under the Renewable Portfolio Standard (RPS) in China, which includes an optimization model and cost allocation models to achieve low cost and fairness. Case analysis of Beijing, Shandong, Shanxi, and Inner Mongolia shows that the ICM can reduce the total cost by 57.07 billion CNY, or 8.25% compared to the current non-cooperation model (NCM). Sensitivity analysis provides policy recommendations for promoting the implementation of the ICM.
Article
Economics
Marie-Louise Arlt, David Chassin, Claudio Rivetta, James Sweeney
Summary: This paper examines the impact of real-time pricing and load automation on residential distribution systems. The study finds that implementing real-time pricing can result in an aggregate welfare gain of 39 USD per customer and year. However, it also notes that RTP and load automation may significantly increase peak system load. Introducing a market-based demand management system can further enhance welfare gains and reduce grid investment.
Article
Economics
Javier Jorquera-Copier, Alvaro Lorca, Enzo Sauma, Stefan Lorenczik, Matias Negrete-Pincetic
Summary: As countries update their climate ambitions, low-carbon hydrogen production and use present opportunities for emissions reductions and economic development. A case study for Chile shows that integrating hydrogen and electricity networks can lower system costs and enhance renewable integration, but policy support is needed to address concerns related to water and land use.
Article
Economics
Dawit Guta, Hisham Zerriffi, Jill Baumgartner, Abhishek Jain, Sunil Mani, Darby Jack, Ellison Carter, Guofeng Shen, Jennifer Orgill-Meyer, Joshua Rosenthal, Katherine Dickinson, Rob Bailis, Yuta Masuda
Summary: Household solid fuel use is detrimental to health and the environment. The Indian government's PMUY subsidy has successfully promoted the adoption of LPG by millions of households. However, there is limited understanding of the decision-making process to reduce solid fuel use after transitioning to cleaner fuels. This study found that factors such as household wealth, social status, education level, and the prevalence of LPG use in the village are positively associated with LPG consumption and the discontinuation of solid fuel use. On the other hand, factors such as distance to LPG refill delivery, household size, and the PMUY subsidy are negatively associated with the share of LPG use.
Article
Economics
Nicolas Morell-Dameto, Jose Pablo Chaves-Avila, Tomas Gomez San Roman, Pablo Duenas-Martinez, Tim Schittekatte
Summary: This paper assesses the performance of differently implemented forward-looking network tariff designs and proposes an innovative coordination mechanism to increase predictability in a future with many flexible customers. The study reveals that if large shares of customers synchronize their responses to highly time-varying and locational-specific network charges, it can lead to unexpected reinforcements.
Article
Economics
Alexandra Gritz, Guntram Wolff
Summary: Russia's weaponization of gas supplies shook the energy security of Central and Eastern Europe in 2022. The region responded by increasing alternative energy supplies and developing new gas supply routes. Renewable energy, nuclear energy, and hydrogen play important roles in the long-term. Mitigating the impact of this shock requires the EU to prioritize the integrity of its energy market.
Article
Economics
Jaroslaw Kantorowicz, Marion Collewet, Matthew DiGiuseppe, Hendrik Vrijburg
Summary: Economic costs are a major political obstacle to investing in climate change mitigation and adaptation measures. The method of financing plays a crucial role in determining public opposition to government green investments, with debt financing being less opposed than broad-based taxes. This study suggests that credit market tools, such as green bonds and debt for climate swaps, can be politically efficient in increasing support for green financing. Carbon taxes and wealth taxes are found to be the most preferred options.
Article
Economics
Kun Guo, Liyuan Luan, Xiaoli Cai, Dayong Zhang, Qiang Ji
Summary: This paper investigates China's energy trade stability using a survival analysis approach. It finds that the energy trade linkages between China and 153 other countries are complex and unstable, with short periods of trade with many countries. Geopolitically risky regions, such as the Middle East and Africa, have the lowest trade stability. Climate risks have significant effects on energy trade stability. The paper proposes several policy options to improve energy trade stability in China, with special attention to increasing global climate risks.
Article
Economics
Simona Bigerna, Piyush Choudhary, Nikunj Kumar Jain, Silvia Micheli, Paolo Polinori
Summary: This study estimates the willingness to pay of Indian urban consumers for a continuous supply of electricity using contingent valuation method. The findings show that the amount consumers are willing to pay depends on the duration of power outages, with households preferring shorter outages. Income and environmental attitude also positively influence higher willingness to pay. These insights can inform policymakers in designing more reliable and customer-centric energy generation and distribution models.
Article
Economics
Temilade Sesan, Unico Uduka, Lucy Baker, Okechukwu Ugwu, Ewah Eleri, Subhes Bhattacharyya
Summary: This study examines the impact of the regulatory framework on rural electrification and universal energy access goals in Nigeria's mini-grid sector. The findings suggest that while the current framework has fostered sector growth, additional measures are necessary to ensure equitable distribution of access among rural populations.
Article
Economics
Rui Shan, Noah Kittner
Summary: Energy storage is a cornerstone in decarbonization planning as it reduces operational costs and greenhouse gas emissions, while enhancing resilience and renewables integration. However, storage developers in different regions have varying economic and environmental considerations, thereby requiring policy intervention to achieve long-term emission reductions.
Article
Economics
Tung Durmaz, Sevil Acar, Simay Kizilkaya
Summary: This study investigates the phenomenon of strategic capacity withholding in the Turkish electricity market and its relationship with the capacity remuneration mechanism. The empirical results provide strong evidence of strategic capacity withholding and show that the capacity mechanism contributes to the duration of failures. The study offers important insights for policymakers, including the implementation of a random verification mechanism and restructuring of the capacity mechanism in Turkey.
Article
Economics
Tii N. Nchofoung
Summary: The study finds that oil price shocks have a negative impact on Africa's energy transition, particularly in rural areas and net crude oil exporting countries. However, oil price shocks cannot explain the urban-rural differences in clean energy access. Therefore, increasing investment in clean energy and technologies in rural areas is necessary to enhance the resilience of the energy sector to oil price shocks.
Article
Economics
Najia Saqib, Muhammad Usman, Ilhan Ozturk, Arshian Sharif
Summary: This study examines the impact of environmental technologies, financial growth, and energy use on ecological footprint and green growth. Environmental innovation and renewable energy deployment contribute to green growth, while financial expansion and non-renewable energy use have negative effects on the environment. The study also identifies causal relationships between different factors.
Article
Economics
Yessica C. Y. Chung, Noxolo Kunene, Hung-Hao Chang
Summary: The Renewable Energy Certificate (REC) is considered an innovative technology for building a green society. This study investigates the impact of REC purchases on stock return and volume in Taiwan between 2017 and 2021. The findings suggest that REC purchases have a positive effect on stock returns of manufacturing firms but not service firms. The frequency of REC purchases is also an important factor in the relationship between REC purchase and firm value. Additionally, the study reveals that public attention to environmental pollution plays a crucial role in positive stock returns and volume, while ESG disclosure is negatively associated with returns and volume.
Article
Economics
Seife Ayele, Wei Shen, Yacob Mulugetta, Tadesse Kuma Worako
Summary: This paper addresses the challenges of governing energy procurement from a mix of non-hydropower renewable energy sources supplied by independent producers. Building on political economy analysis and five case studies of independent producer projects from Ethiopia, it seeks to understand the root causes of the protracted delays and limited extent of procurement by independent producers. The key contestations lie in managing long term contracts, risk, uncertainty and in developing the institutional and human capacity to transition.