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Differentiated power rationing or seasonal power price? Optimal power allocation solution for Chinese industrial enterprises based on the CSW-DEA model

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  • Zhang, Chonghui
  • Wang, Zhen
  • Su, Weihua
  • Dalia, Streimikiene

Abstract

Seasonal power price (SPP) and differentiated power rationing (DPR) are two solutions for tackling power shortages as they adjust power allocation, alleviate power supply–demand contradictions, and promote the sustainable development of the energy industry. Based on microdata from 9593 industrial enterprises in China, this study analyzes the effects of SPP and DPR on allocating power resources optimally. The results reveal the following. (1) Under SPP, the price of power fluctuates in summer between 0.4627 and 0.5047 yuan/kWh, while spring-autumn and winter prices remain stable at 0.3785 yuan/kWh and 0.4627 yuan/kWh, respectively. (2) Under DPR, according to industrial efficiency and the optimal enterprise power rationing ratio, power rationing solutions can be summarized into forced, moderate, and incentive types. (3) SPP and DPR can effectively alleviate power shortages. However, SPP is superior in maintaining balanced industrial development and reducing power costs by guiding enterprises toward off-peak production through price adjustment mechanisms. Finally, policy implications are illustrated in implementing SPP and DPR in the case of power shortages.

Suggested Citation

  • Zhang, Chonghui & Wang, Zhen & Su, Weihua & Dalia, Streimikiene, 2024. "Differentiated power rationing or seasonal power price? Optimal power allocation solution for Chinese industrial enterprises based on the CSW-DEA model," Applied Energy, Elsevier, vol. 353(PB).
    • Handle: RePEc:eee:appene:v:353:y:2024:i:pb:s0306261923015143
    DOI: 10.1016/j.apenergy.2023.122150
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