Search

In the context of China's dual‑carbon goals and electricity market reforms, the high penetration of renewable energy sources (RES) in a single microgrid (MG) imposes challenges to its flexible operation. This paper addresses the cooperation within a virtual power plant (VPP) aggregated by multiple MGs. The VPP, managed by the VPP operator, acts as an intermediate entity to facilitate MGs' economic and low-carbon operation. To ensure the interests of various stakeholders in the VPP, this work proposes a low carbon oriented tri-stage collaborative energy management framework. In the 1st stage, the day-ahead optimal scheduling of individual MGs and the bidding strategy of the VPP operator are modeled, where an internal pricing method is incorporated. The 2nd stage addresses the real-time redispatch of the VPP operator using a receding horizon-based model predictive control (MPC) solution. This aims to satisfy the real-time operational requirements of MGs and reduce adjustment costs. Furthermore, in the 3rd stage, a penalty allocation mechanism is established for MGs based on their forecasting errors, to protect the VPP operator's interests. The effectiveness of the proposed solution is evaluated through comparative simulations in the context of the Guangdong electricity market. • The virtual power plant (VPP) aggregated by multiple microgrids (MG) is studied. • The quantification of carbon emission is involved in the whole scheduling process. • An peer-to-peer (P2P) electricity trading pricing method is improved and adopted. • A penalty allocation mechanism is proposed to guarantee interests of each entity. • The Guangdong electricity market is considered as the market mechanism. [ABSTRACT FROM AUTHOR]

China is pursuing aggressive action to reduce greenhouse gas emissions from its coal-dominated electric power system. Two key strategies are power market reform and carbon pricing. This paper investigates the combined effects of these two strategies in reducing CO 2 emissions from power system operations. We develop an economic dispatch model to simulate hourly power supply system operation in China Southern Power Grid in 2018 under fifteen carbon pricing scenarios; these reflect a wide range of policy ambition, from today's carbon prices to much higher ones that aim to instigate aggressive emission mitigation. Our results show that moderate carbon pricing alone is insufficient to effectively reduce CO 2 emissions without concurrent power market reform. With power market reform and as carbon prices increase, large coal units supplemented by energy storage witness higher use rates as they supplant smaller coal-fired generators, until a carbon price of 300 RMB/TCO 2 phases out coal use in favor of natural gas. Only at carbon prices higher than 300 RMB/TCO 2 do emissions begin to decrease appreciably. Geographic disparities emerge among the five provinces that comprise the Southern Power Grid, with Guangdong witnessing the most CO 2 emission reduction at high carbon prices, while emission reductions in other provinces are negligible. Carbon pricing also dramatically increases total power system costs, even at low carbon prices. Our results show the necessity of introducing power market reform and carbon pricing policies concurrently if the goal is to reduce CO 2 emissions, with the ultimate goal being a carbon price significantly greater than 300 RMB/TCO 2. Because both options will be necessary, our research maps a path to deep emission reductions in China Southern Power Grid for investors, analysts, and policy makers as discussions regarding both reforms accelerate. • We assess combined effects of carbon pricing and power market reform in China. • Carbon pricing cannot reduce CO 2 emissions without power market reform. • CO 2 reductions from carbon pricing are negligible until prices of 300 RMB/TCO 2. • Even with low carbon prices, power supply system cost increase appreciably. • Existing system can only achieve shallow decarbonization, even at 1000RMB/TCO 2. [ABSTRACT FROM AUTHOR]

This paper examines the risk spillover effect between the carbon market and the stock market in China and the role of corporate social responsibility (CSR) on this effect. Employing Beijing, Hubei, and Guangdong carbon markets, we apply time-domain and frequency-domain spillover approaches and find that during the Chinese stock market crisis in 2015, risk spillovers from the stock market to the carbon market were more pronounced. Additionally, CSR firms are more dominant as information transmitters than those non-CSR (NCSR) firms in the carbon market. However, plausibly, due to the infancy of carbon trading, our results show that the level of connectedness between the carbon market and the stock market in China is relatively low. [ABSTRACT FROM AUTHOR]

As a new clean and sustainable energy that can reduce carbon emissions, offshore wind energy has received much more attention in recent years. In response to the complexity and flexibility issues in the decision-making process of offshore wind power investment, this paper proposes an investment decision framework based on a bidimensional binominal lattice that embeds deferral options, aiming to derive the appropriate development timing and investment potential for corporate investors in uncertain environment of market and technological development. And the investment model embedding revenue from carbon emission reduction highlights the advantages of clean energy. Furthermore, we creatively compare the policy effects of three subsidy schemes using the model as a policy analysis tool and use scenario analysis to simulate the impacts of dynamic adjustments in subsidies on investment decisions. For the case of an offshore wind power plant in Guangdong province, China, we find that the local government has to provide a subsidy of 0.11 CNY/kWh to allow the project to be profitable. In the absence of subsidies, however, it is preferable to defer the decision of investment with a wait-and-see attitude. Given the same total government financial input, we find that it will be more beneficial for the government to provide R&D subsidy than electricity tariff subsidy and operation subsidy in terms of long-term sustainable development. Our findings also demonstrate that considerations in the carbon trading market will also contribute to the development of offshore wind power. The conclusions of this article can provide valuable guidelines for corporate investors to adjust the appropriate development timing and for policymakers to optimize subsidy allocation, so as to promote the healthy development of offshore wind power and low-carbon transition. [ABSTRACT FROM AUTHOR]

• It evaluates the effect of China's ETS on non-fossil energy development. • It analyzes ETS's effects from energy type, pilot, and pilot-energy type aspects. • The ETS has the most significant promoting effect on hydropower and photovoltaics. • Carbon price plays a positive role in moderating the effect of China's ETS. Emissions Trading Scheme (ETS) can internalize the environmental costs of fossil energy consumption and encourage enterprises to consume non-fossil energy, which is crucial for People's Republic of China (PRC) to achieve the contribution target of the Paris Agreement cost-effectively. However, whether the ETS in PRC can promote non-fossil energy development remains to be answered. This paper uses a difference-in-differences model to evaluate the effect of the ETS on non-fossil energy development in PRC. Using provincial monthly panel data from January 2004 to December 2019, we find that (1) the ETS has significantly promoted non-fossil energy development in PRC, increasing the monthly average share of non-fossil energy power generation in total power generation by 2.326 percentage points, which has been verified by a series of robustness tests. (2) The effect of the ETS on non-fossil energy development is heterogeneous by energy type, pilot region, and pilot-energy type. The ETS has significantly increased the share of hydropower and photovoltaic power generation, and has significantly promoted non-fossil energy development in Guangdong; meanwhile, the ETS has significantly increased the share of hydropower and nuclear power in Guangdong, and the share of wind power and photovoltaic power in Hubei. (3) The higher the carbon price, the greater the role of the ETS in promoting non fossil energy development. [ABSTRACT FROM AUTHOR]