IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v8y2015i8p8749-8774d54312.html
   My bibliography  Save this article

Economic Impact Assessment of Wind Power Integration: A Quasi-Public Goods Property Perspective

Author

Listed:
  • Huiru Zhao

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Sen Guo

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

  • Hongze Li

    (School of Economics and Management, North China Electric Power University, Beijing 102206, China)

Abstract

The integration of wind power into power grid will bring some impacts on the multiple subjects of electric power system. Economic impacts of wind power integration on multiple subjects of China’s electric power system were quantitatively assessed from Quasi-public goods property perspective in this paper. Firstly, the Quasi-public goods property of transmission services provided by power grid corporations was elaborated. Secondly, the multiple subjects of China’s electric power system, which include electricity generation enterprises (EGEs), power grid corporations (PGCs), electricity consumers (ECs), and environment, were detailed analyzed. Thirdly, based on the OPF-based nodal price model and transmission service cost allocation model, the economic impact assessment model of wind power integration was built from Quasi-public goods property perspective. Then, the IEEE-24 bus system employed in this paper was introduced according to current status of China’s electric power system, and the modeling of wind turbine was also introduced. Finally, the simulation analysis was performed, and the economic impacts of wind power integration on EGEs, PGCs, ECs and Environment were calculated. The results indicate, from Quasi-public goods property perspective, the wind power integration will bring positive impacts on EGEs, PGCs and Environment, while negative impacts on ECs. The findings can provide references for power system managers, energy planners, and policy makers.

Suggested Citation

  • Huiru Zhao & Sen Guo & Hongze Li, 2015. "Economic Impact Assessment of Wind Power Integration: A Quasi-Public Goods Property Perspective," Energies, MDPI, vol. 8(8), pages 1-26, August.
    • Handle: RePEc:gam:jeners:v:8:y:2015:i:8:p:8749-8774:d:54312
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/8/8/8749/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/8/8/8749/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gass, V. & Strauss, F. & Schmidt, J. & Schmid, E., 2011. "Assessing the effect of wind power uncertainty on profitability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2677-2683, August.
    2. Hu, Zheng & Wang, Jianhui & Byrne, John & Kurdgelashvili, Lado, 2013. "Review of wind power tariff policies in China," Energy Policy, Elsevier, vol. 53(C), pages 41-50.
    3. Rosen, Johannes & Tietze-Stöckinger, Ingela & Rentz, Otto, 2007. "Model-based analysis of effects from large-scale wind power production," Energy, Elsevier, vol. 32(4), pages 575-583.
    4. Li, Hong & Xie, Minghua & Zhang, Tingting, 2013. "Promote the development of renewable energy: A review and empirical study of wind power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 101-107.
    5. Jean-Marc Bourgeon & Robert G. Chambers, 2008. "Implementable Ramsey-Boiteux Pricing in Agricultural and Environmental Policy," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 499-508.
    6. Sun, Honghang & Zhi, Qiang & Wang, Yibo & Yao, Qiang & Su, Jun, 2014. "China’s solar photovoltaic industry development: The status quo, problems and approaches," Applied Energy, Elsevier, vol. 118(C), pages 221-230.
    7. Purvins, Arturs & Papaioannou, Ioulia T. & Oleinikova, Irina & Tzimas, Evangelos, 2012. "Effects of variable renewable power on a country-scale electricity system: High penetration of hydro power plants and wind farms in electricity generation," Energy, Elsevier, vol. 43(1), pages 225-236.
    8. He, Y.X. & Xia, T. & Liu, Z.Y. & Zhang, T. & Dong, Z., 2013. "Evaluation of the capability of accepting large-scale wind power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 509-516.
    9. Huiru Zhao & Sen Guo, 2015. "External Benefit Evaluation of Renewable Energy Power in China for Sustainability," Sustainability, MDPI, vol. 7(5), pages 1-23, April.
    10. Ma, Zhixiao & Xue, Bing & Geng, Yong & Ren, Wanxia & Fujita, Tsuyoshi & Zhang, Zilong & Puppim de Oliveira, Jose A. & Jacques, David A. & Xi, Fengming, 2013. "Co-benefits analysis on climate change and environmental effects of wind-power: A case study from Xinjiang, China," Renewable Energy, Elsevier, vol. 57(C), pages 35-42.
    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. Santalco, Aldo, 2012. "How and when China will exceed its renewable energy deployment targets," Energy Policy, Elsevier, vol. 51(C), pages 652-661.
    13. Zeng, Ming & Li, Chen & Zhou, Lisha, 2013. "Progress and prospective on the police system of renewable energy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 20(C), pages 36-44.
    14. Zhao, Xiaoli & Wang, Feng & Wang, Mei, 2012. "Large-scale utilization of wind power in China: Obstacles of conflict between market and planning," Energy Policy, Elsevier, vol. 48(C), pages 222-232.
    15. Sun, Shengpeng & Liu, Fengliang & Xue, Song & Zeng, Ming & Zeng, Fanxiao, 2015. "Review on wind power development in China: Current situation and improvement strategies to realize future development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 589-599.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yiming Xiao & Zhijun Feng & Xinying Li & Shangrui Wang, 2024. "Low-carbon transition and energy poverty: quasi-natural experiment evidence from China’s low-carbon city pilot policy," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-18, December.
    2. Sen Guo & Huiru Zhao & Haoran Zhao, 2017. "The Most Economical Mode of Power Supply for Remote and Less Developed Areas in China: Power Grid Extension or Micro-Grid?," Sustainability, MDPI, vol. 9(6), pages 1-18, May.
    3. Shoudao Huang & Yang Zhang & Sijia Hu, 2016. "Stator Current Harmonic Reduction in a Novel Half Quasi-Z-Source Wind Power Generation System," Energies, MDPI, vol. 9(10), pages 1-15, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pei, Wei & Chen, Yanning & Sheng, Kun & Deng, Wei & Du, Yan & Qi, Zhiping & Kong, Li, 2015. "Temporal-spatial analysis and improvement measures of Chinese power system for wind power curtailment problem," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 148-168.
    2. Walz, Rainer & Köhler, Jonathan Hugh & Lerch, Christian, 2016. "Towards modelling of innovation systems: An integrated TIS-MLP approach for wind turbines," Discussion Papers "Innovation Systems and Policy Analysis" 50, Fraunhofer Institute for Systems and Innovation Research (ISI).
    3. Fan, Xiao-chao & Wang, Wei-qing, 2016. "Spatial patterns and influencing factors of China׳s wind turbine manufacturing industry: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 482-496.
    4. Zhao, Zhen-Yu & Chen, Yu-Long & Chang, Rui-Dong, 2016. "How to stimulate renewable energy power generation effectively? – China's incentive approaches and lessons," Renewable Energy, Elsevier, vol. 92(C), pages 147-156.
    5. Gosens, Jorrit & Lu, Yonglong, 2014. "Prospects for global market expansion of China’s wind turbine manufacturing industry," Energy Policy, Elsevier, vol. 67(C), pages 301-318.
    6. Shuo Zhang & Li Chen & Yidan Zheng & Yingzi Li & Ying Li & Ming Zeng, 2021. "How Policies Guide and Promoted Wind Power to Market Transactions in China during the 2010s," Energies, MDPI, vol. 14(14), pages 1-24, July.
    7. Yuan, Jiahai & Sun, Shenghui & Shen, Jiakun & Xu, Yan & Zhao, Changhong, 2014. "Wind power supply chain in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 356-369.
    8. 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.
    9. Li, Lili & Taeihagh, Araz, 2020. "An in-depth analysis of the evolution of the policy mix for the sustainable energy transition in China from 1981 to 2020," Applied Energy, Elsevier, vol. 263(C).
    10. Ming, Zeng & Junjie, Feng & Song, Xue & Zhijie, Wang & Xiaoli, Zhu & Yuejin, Wang, 2013. "Development of China's pumped storage plant and related policy analysis," Energy Policy, Elsevier, vol. 61(C), pages 104-113.
    11. Wei, Youzhou & Zou, Qing-Ping & Lin, Xianghong, 2021. "Evolution of price policy for offshore wind energy in China: Trilemma of capacity, price and subsidy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    12. Tafarte, Philip & Das, Subhashree & Eichhorn, Marcus & Thrän, Daniela, 2014. "Small adaptations, big impacts: Options for an optimized mix of variable renewable energy sources," Energy, Elsevier, vol. 72(C), pages 80-92.
    13. Zhang, Pan, 2019. "Do energy intensity targets matter for wind energy development? Identifying their heterogeneous effects in Chinese provinces with different wind resources," Renewable Energy, Elsevier, vol. 139(C), pages 968-975.
    14. Sahu, Bikash Kumar, 2018. "Wind energy developments and policies in China: A short review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1393-1405.
    15. Liu, Jinpeng & Lin, Yingwen & Jiang, Mingyue & Guo, Xia, 2024. "Exploring policy support for wind power development from a balancing perspective - A study of dynamic strategies based on evolutionary game," Energy Policy, Elsevier, vol. 188(C).
    16. Liu, Yuanxin & Ren, Lingzhi & Li, Yanbin & Zhao, Xin-gang, 2015. "The industrial performance of wind power industry in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 644-655.
    17. Grafström, Jonas, 2019. "Public policy failures related to China´s Wind Power Development," Ratio Working Papers 320, The Ratio Institute.
    18. Li, Mingquan & Patiño-Echeverri, Dalia & Zhang, Junfeng (Jim), 2019. "Policies to promote energy efficiency and air emissions reductions in China's electric power generation sector during the 11th and 12th five-year plan periods: Achievements, remaining challenges, and ," Energy Policy, Elsevier, vol. 125(C), pages 429-444.
    19. Zeng, Bo & Zeng, Ming & Xue, Song & Cheng, Min & Wang, Yuejin & Feng, Junjie, 2014. "Overall review of wind power development in Inner Mongolia: Status quo, barriers and solutions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 614-624.
    20. Grafström, Jonas, 2020. "An Austrian economic perspective on failed Chinese wind power development," Ratio Working Papers 336, The Ratio Institute.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:8:y:2015:i:8:p:8749-8774:d:54312. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.