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The Development of the Renewable Energy Power Industry under Feed-In Tariff and Renewable Portfolio Standard: A Case Study of China’s Photovoltaic Power Industry

Author

Listed:
  • Yuzhuo Zhang

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

  • Xingang Zhao

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

  • Yi Zuo

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

  • Lingzhi Ren

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

  • Ling Wang

    (State Grid Liaoning Electric Power Co., Ltd., Benxi Power Supply Company, Benxi 117020, China)

Abstract

Among the regulatory policies, feed-in tariffs (FIT) and renewable portfolio standards (RPS) are the most popular to promote the development of renewable energy power industry. They can significantly contribute to the expansion of domestic industrial activities in terms of sustainable energy. In this paper, we synthetically consider various important factors with the analysis of the existing literature, and use system dynamics (SD) to establish models of long-term development of the renewable energy power industry under FIT and RPS schemes. The model not only clearly shows the complex logical relationship between the factors but also reveals the process of coordination between the two policy tools in the development of the renewable energy power industry. In addition, as an example of development of renewable energy industry, the paper studies the development of China’s photovoltaic power industry under different scenarios. The models proposed in this paper can provide a reference for scholars to study development of the renewable energy power industry in different countries, thereby facilitating an understanding of the renewable energy power’s long-term sustainable development pattern under FIT and RPS schemes, and helping to provide references for policy-making institutions. The results show that in the perfect competitive market, the implementation of RPS can promote long-term and rapid development of China’s photovoltaic power industry given the constraints and actions of the mechanisms of RPS quota proportion, the TGC valid period, and fines, compared with FIT. At the end of the paper, policy implications are offered as references for the government.

Suggested Citation

  • Yuzhuo Zhang & Xingang Zhao & Yi Zuo & Lingzhi Ren & Ling Wang, 2017. "The Development of the Renewable Energy Power Industry under Feed-In Tariff and Renewable Portfolio Standard: A Case Study of China’s Photovoltaic Power Industry," Sustainability, MDPI, vol. 9(4), pages 1-23, March.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:4:p:532-:d:94618
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    13. Jacek Brożyna & Grzegorz Mentel & Eva Ivanová & Gennadii Sorokin, 2019. "Classification of Renewable Sources of Electricity in the Context of Sustainable Development of the New EU Member States," Energies, MDPI, vol. 12(12), pages 1-22, June.
    14. Li, Xiaozhu & Wang, Weiqing & Wang, Haiyun & Wu, Jiahui & Fan, Xiaochao & Xu, Qidan, 2020. "Dynamic environmental economic dispatch of hybrid renewable energy systems based on tradable green certificates," Energy, Elsevier, vol. 193(C).
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    17. Zhang, Libo & Chen, Changqi & Wang, Qunwei & Zhou, Dequn, 2021. "The impact of feed-in tariff reduction and renewable portfolio standard on the development of distributed photovoltaic generation in China," Energy, Elsevier, vol. 232(C).
    18. Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & Vincenzo Stornelli, 2018. "Solar Photovoltaic Panels Combined with Energy Storage in a Residential Building: An Economic Analysis," Sustainability, MDPI, vol. 10(9), pages 1-29, August.
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