Renewables portfolio standard and regional energy structure optimisation in China

• Published in: Energy policy Vol. 33; no. 3; pp. 279 - 287
• Main Authors: Fan, J, Sun, W, Ren, D.-M
• Format: Journal Article
• Language: English
• Published: Oxford Elsevier Ltd 01.02.2005; Elsevier; Elsevier Science Ltd
• Series: Energy Policy
• Subjects: Applied sciences; China; Coastal areas; Eastern coastal areas (ECA); Economic data; Economic growth; Electric energy; Energy; Energy consumption; Energy economics; Energy policy; Energy structure; Exact sciences and technology; General, economic and professional studies; Natural energy; Policy studies; Reforms; Regional analysis; Renewable energy sources; Renewable resources; Renewables portfolio standard; Statistical analysis; Studies; China; China, People's Rep; Energy structure; Renewables portfolio standard; Eastern coastal areas (ECA); Energy consumption; Distribution by sources; Energy transport; Power production; Legislation; Energy economy; Economic optimization; Photovoltaic system; International scope; Implementation; Hydraulic power; Wind energy; Renewable energy; Quota; 1990-2000; Solar energy; Production cost; Acquired experience; Electric power production; Cost analysis
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/S0301-4215(03)00237-4

Eastern Coastal areas of China have been developing rapidly since the implementation of reforms and the opening of China's economic markets in 1978. As in most areas of the world, this rapid economic growth has been accompanied by large increases in energy consumption. China's coal-dominated energy structure has resulted in serious ecological and environmental problems. Exploiting renewable energy resources and introducing Renewables Portfolio Standard (RPS) are some of the most important approaches towards optimising and sustaining the energy structure of China. This paper discusses international experiences in the implementation of RPS policies and prospects for using these policies to encourage renewable energy development in China, establishes a concise definition of renewable resources, differentiating between the broad definition (which includes hydro over 25 MW in size) from the narrow definition (which limits the eligibility of hydro to below 25 MW in size), and quantitatively analyses the potential renewable energy target. The research shows that: (1) Under the narrow hydro definition the renewable energy target would be 5.1% and under the broad hydro definition it would be 18.4%. (2) Western China has contributed 90.2% of the total renewable electricity generation in the country (if big and medium hydropowers are not included). Including big and medium hydropower, the figure is 63.8%. (3) Eastern electricity companies can achieve their quota by buying Tradable Renewable Energy Certificates (TRCs or Green Certificates) and by exploiting renewable energy resources in Western China. The successful implementation of the RPS policy will achieve the goal of sharing the benefits and responsibilities of energy production between the different regions of China.