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A mechanism to overcome barriers to inter-provincial power supply substitution in China

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  • Ye, Shunran
  • Meng, Yichao
  • Feng, Shuhai
  • Liu, Shuo
  • Zhang, Xinhua

Abstract

Inter-provincial barriers hinder the optimization process of power resource allocation, resulting in a coexistence of idle low-cost power plants and high-cost power plants within the region. This paper investigates the size measurement and elimination of interprovincial barriers. It also proposes a specific program for regional unified electricity market clearing and eliminating inter-provincial barriers. The results indicate that this mechanism enables power supply substitution without causing harm to market players and overcomes inter-provincial barriers to optimal resource allocation. It promotes the rational allocation of power resources and reduces power supply costs within the region.

Suggested Citation

  • Ye, Shunran & Meng, Yichao & Feng, Shuhai & Liu, Shuo & Zhang, Xinhua, 2024. "A mechanism to overcome barriers to inter-provincial power supply substitution in China," Utilities Policy, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:juipol:v:88:y:2024:i:c:s0957178724000468
    DOI: 10.1016/j.jup.2024.101753
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    References listed on IDEAS

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