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An inter-provincial renewable electricity trading model under renewable portfolio standards policy

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  • Zeng, Lijun
  • Du, Wenjing
  • Hong, Weichen

Abstract

The mismatch between renewable energy abundant regions and high energy consumption regions in China hinders the further development of renewable energy under Renewable Portfolio Standards (RPS). Therefore, this study proposes an inter-provincial renewable electricity trading model (RETM) to address this challenge and promote the construction of national green electricity market. The Leader-follower game is used to analyze the RETM: First, after a comprehensive analysis of the countrywide renewable resource, the central government sets benchmark prices for different renewable electricity generation methods to optimize the national renewable energy development cost. Then, based on the given prices and their condition, provincial governments determine generation and trading volume to minimize their cost under RPS. Accordingly, we established a bi-level programming model and scientifically solve it based on NSGA-Ⅱ. The case study of Tianjin, Shandong, Shanxi, and Inner Mongolia shows that the RETM can reduce costs in each case provincial region, and the total cost is reduced by 5.33 %. The robustness of the RETM is verified by a sensitivity analysis. The results demonstrate that the RETM is effective and feasible, and we proposed some policy recommendations to implement the RETM.

Suggested Citation

  • Zeng, Lijun & Du, Wenjing & Hong, Weichen, 2025. "An inter-provincial renewable electricity trading model under renewable portfolio standards policy," Energy, Elsevier, vol. 319(C).
    • Handle: RePEc:eee:energy:v:319:y:2025:i:c:s0360544225006474
    DOI: 10.1016/j.energy.2025.135005
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