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Development policy for non-grid-connected wind power in China: An analysis based on institutional change

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  • Fang, Yong
  • Li, Jing
  • Wang, Mingming

Abstract

Government policy continues to play a crucial role in the development of wind power industry in China. The 2005 “Renewable Energy Law” and related policies have driven the rapid increase in wind power installed capacity in China over the past half-decade, with capacity doubling annually since 2005. However, a large number of wind farms generate electricity well below their installed capacity, resulting in considerable wastage of resources. Non-grid-connected wind power theory proposes that large-scale wind power output does not necessarily have to be fed into the grid, but can be used directly in industrial production. Thus, the use of the theory can promote the sustainable development of the wind power industry by obviating the need for power grid. In this paper we analyze the influence of government policy on wind power industry from the perspective of institutional change, by employing the basic theories of new institutional economics. A development model for non-grid-connected wind power is proposed in order to implement institutional change in accordance with the specific characteristics of wind power industry in China. This model requires the government to play an active role in institutional development by increasing economic efficiency in order to promote the sustainable development of wind power.

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  • Fang, Yong & Li, Jing & Wang, Mingming, 2012. "Development policy for non-grid-connected wind power in China: An analysis based on institutional change," Energy Policy, Elsevier, vol. 45(C), pages 350-358.
    • Handle: RePEc:eee:enepol:v:45:y:2012:i:c:p:350-358
    DOI: 10.1016/j.enpol.2012.02.043
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    3. Cao, Xun & Kleit, Andrew & Liu, Chuyu, 2016. "Why invest in wind energy? Career incentives and Chinese renewable energy politics," Energy Policy, Elsevier, vol. 99(C), pages 120-131.
    4. Chen, Hao & Chen, Jiachuan & Han, Guoyi & Cui, Qi, 2022. "Winding down the wind power curtailment in China: What made the difference?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    5. Xia, Fang & Song, Feng, 2017. "The uneven development of wind power in China: Determinants and the role of supporting policies," Energy Economics, Elsevier, vol. 67(C), pages 278-286.
    6. Ranaboldo, Matteo & Ferrer-Martí, Laia & García-Villoria, Alberto & Pastor Moreno, Rafael, 2013. "Heuristic indicators for the design of community off-grid electrification systems based on multiple renewable energies," Energy, Elsevier, vol. 50(C), pages 501-512.
    7. Ming, Zeng & Song, Xue & Mingjuan, Ma & Xiaoli, Zhu, 2013. "New energy bases and sustainable development in China: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 169-185.
    8. Liao, Zhongju, 2016. "The evolution of wind energy policies in China (1995–2014): An analysis based on policy instruments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 56(C), pages 464-472.
    9. Wu, Zhongqun & Sun, Hongxia & Du, Yihang, 2014. "A large amount of idle capacity under rapid expansion: Policy analysis on the dilemma of wind power utilization in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 32(C), pages 271-277.
    10. Dragomir, George & Șerban, Alexandru & Năstase, Gabriel & Brezeanu, Alin Ionuț, 2016. "Wind energy in Romania: A review from 2009 to 2016," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 129-143.
    11. Zhang, Sufang & Andrews-Speed, Philip & Zhao, Xiaoli, 2013. "Political and institutional analysis of the successes and failures of China’s wind power policy," Energy Policy, Elsevier, vol. 56(C), pages 331-340.
    12. Xuemei Liu, 2016. "Why Has Wind Power Capacity Been Overinvested Under Uncertainty in China?," Review of Economics & Finance, Better Advances Press, Canada, vol. 6, pages 1-12, February.
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    15. Xiaogang Zhang & Dong Wang & Yuanhao Liu & Hongtao Yi, 2016. "Wind Power Development in China: An Assessment of Provincial Policies," Sustainability, MDPI, vol. 8(8), pages 1-12, July.

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