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Displacement efficiency of alternative energy and trans-provincial imported electricity in China

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  • Yuanan Hu

    (MOE Laboratory of Groundwater Circulation and Evolution, School of Water Resources and Environment, China University of Geosciences (Beijing))

  • Hefa Cheng

    (MOE Laboratory for Earth Surface Processes, College of Urban and Environmental Sciences, Peking University)

Abstract

China has invested heavily on alternative energy, but the effectiveness of such energy sources at substituting the dominant coal-fired generation remains unknown. Here we analyse the displacement of fossil-fuel-generated electricity by alternative energy, primarily hydropower, and by trans-provincial imported electricity in China between 1995 and 2014 using two-way fixed-effects panel regression models. Nationwide, each unit of alternative energy displaces nearly one-quarter of a unit of fossil-fuel-generated electricity, while each unit of imported electricity (regardless of the generation source) displaces ∼0.3 unit of fossil-fuel electricity generated locally. Results from the six regional grids indicate that significant displacement of fossil-fuel-generated electricity occurs once the share of alternative energy in the electricity supply mix exceeds ∼10%, which is accompanied by 10–50% rebound in the consumption of fossil-fuel-generated electricity. These findings indicate the need for a policy that integrates carbon taxation, alternative energy and energy efficiency to facilitate China’s transition towards a low-carbon economy.

Suggested Citation

  • Yuanan Hu & Hefa Cheng, 2017. "Displacement efficiency of alternative energy and trans-provincial imported electricity in China," Nature Communications, Nature, vol. 8(1), pages 1-9, April.
    • Handle: RePEc:nat:natcom:v:8:y:2017:i:1:d:10.1038_ncomms14590
    DOI: 10.1038/ncomms14590
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    Cited by:

    1. Zhang, Jing & Lei, Xiaohui & Chen, Bin & Song, Yongyu, 2019. "Analysis of blue water footprint of hydropower considering allocation coefficients for multi-purpose reservoirs," Energy, Elsevier, vol. 188(C).
    2. Dyrstad, Jan Morten & Skonhoft, Anders & Christensen, Magnus Quist & Ødegaard, Eirik Theie, 2019. "Does economic growth eat up environmental improvements? Electricity production and fossil fuel emission in OECD countries 1980–2014," Energy Policy, Elsevier, vol. 125(C), pages 103-109.
    3. Chenxi Xiang & Xinye Zheng & Feng Song & Jiang Lin & Zhigao Jiang, 2023. "Assessing the roles of efficient market versus regulatory capture in China’s power market reform," Nature Energy, Nature, vol. 8(7), pages 747-757, July.
    4. Tomas Baležentis & Dalia Štreimikienė, 2019. "Sustainability in the Electricity Sector through Advanced Technologies: Energy Mix Transition and Smart Grid Technology in China," Energies, MDPI, vol. 12(6), pages 1-21, March.
    5. Momeni, Farhang & Sabzpoushan, Seyedali & Valizadeh, Reza & Morad, Mohammad Reza & Liu, Xun & Ni, Jun, 2019. "Plant leaf-mimetic smart wind turbine blades by 4D printing," Renewable Energy, Elsevier, vol. 130(C), pages 329-351.
    6. Changyu Zhou & Guohe Huang & Jiapei Chen, 2019. "A Type-2 Fuzzy Chance-Constrained Fractional Integrated Modeling Method for Energy System Management of Uncertainties and Risks," Energies, MDPI, vol. 12(13), pages 1-21, June.
    7. Wang, Hui & Zhang, Yunyun & Lin, Weifen & Wei, Wendong, 2023. "Transregional electricity transmission and carbon emissions: Evidence from ultra-high voltage transmission projects in China," Energy Economics, Elsevier, vol. 123(C).
    8. Xu, Beibei & Chen, Diyi & Venkateshkumar, M. & Xiao, Yu & Yue, Yan & Xing, Yanqiu & Li, Peiquan, 2019. "Modeling a pumped storage hydropower integrated to a hybrid power system with solar-wind power and its stability analysis," Applied Energy, Elsevier, vol. 248(C), pages 446-462.
    9. Wang, Zhaohua & Li, Yiming & Cai, Hailin & Yang, Yuantao & Wang, Bo, 2019. "Regional difference and drivers in China's carbon emissions embodied in internal trade," Energy Economics, Elsevier, vol. 83(C), pages 217-228.
    10. Song, Wenfei & Han, Xianfeng, 2022. "The bilateral effects of foreign direct investment on green innovation efficiency: Evidence from 30 Chinese provinces," Energy, Elsevier, vol. 261(PB).
    11. Fang, Debin & Zhao, Chaoyang & Yu, Qian, 2018. "Government regulation of renewable energy generation and transmission in China’s electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 775-793.
    12. Wei, Yi-Ming & Chen, Hao & Chyong, Chi Kong & Kang, Jia-Ning & Liao, Hua & Tang, Bao-Jun, 2018. "Economic dispatch savings in the coal-fired power sector: An empirical study of China," Energy Economics, Elsevier, vol. 74(C), pages 330-342.

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