Research On Price-regulation Policies Of Chinese Renewable Energies

Chinese renewable energies reserve richly, but distribution unevenly. In recent years, Chinese renewable energy industries have developed quickly. Renewable energy generation capacity including wind power, solar power, biomass power generation,has been located in the forefront of the world, that is inseparable with renewable energy industry support policies, Chinese renewable energy price-regulation policies had mainly effect on renewable energy development. Through method of the empirical analysis, we can know that the development of Chinese renewable energy largely depends how to make and implement relative price-regulation policies.At present the people more and more concern about the problems of renewable energy and the corresponding renewable energy regulatory policy also is valued. But now the making and implementation of Chinese renewable energy related regulation policies fallbehind Europe and the United States and other developed countries. We are learning the foreign adbance regulatory policies, the research of renewable energy regulatory policies epecially price controls policies for our own country are not many. In order to promote the development of Chinese renewable energy and safeguard energy security, we should first analysis the main price-regulation polcies theoretically and practically, and then comparing the advantages and disadvantages of each policy, and the feasibility of the applicability of the policy, the policy performance and other related content. We should know about the difference between different renewable energy technologies, and make our Chinese renewable energy price-regulatory policies more suitable, on the basis of learning to the different types of technology type of renewable energy and learning about the foreign advanced experience.Technical progress is very important for the large-scale development and utilization of the renewable energy. Pricing problem is the key to promoting renewable energy development. It can also be said that renewable energy price regulation is essentially a typical price-regulation problem. Renewable energy power generation industry is in the initial stage of the industry. Because the cost of the renewable energy cost is more than the one of conventional energy, renewable energy and conventional energy can not compete with each other directly. There are difference between different types of technology, so the price regulation is necessary for the survival and development of different types of renewable energy technology. Renewable energy tariff regulation is essentially a typical price control problem. And renewable energy power generation industry has the character of positive externality, that makes the price of a variety of technical types of renewable energy industry electricity is higher than the one of conventional energy electricity price. In order to promote the rapid development of renewable energy, the government agencies regulate the price of renewable energy power generation industry is necessary. The main regulatory method internationly is feed-in tariffs policy, bidding policy and tradable green certificates policy and so on. In China we mainly use feed-in tariffs and bidding, quotas is just beginning, and the tradable green certificates Policy is the developing trend. In this paper, combinding with the producer surplus and consumer surplus or welfare of the public, we analyze the price-regulation policies. And we analyze the experience of the developed countries such as Europe and America. From the aspects of the static efficiency and dynamic efficiency, the paper compare with three kinds of regulatory policies. There is no the best and most perfect price-regulation policy for China, a lot of factors such as different types of renewable energy at different stages of development, policy target and the measure index selection of policy effect and so on, will all influence the corresponding the choices of the specific policy. In certain circumstances, it also needs to make comprehensive use of a variety of renewable energy price-regulation policies.The main contents of this paper are:The first chapter is introduction. We discuss the component, characteristics and necessity of Chinese renewable energy industry, and then analyze present situation and development target of the Chinese renewable energy industry. Based on these, we put forward the cut-in point, main contents, research framework and main innovations.The second chapter is literature review and theoretical basis of Chinese renewable energy price-regulation policy. First we review and comment the domestic and foreign references of price-regulation policy, then research the theoretical basis of renewable energy price-regulation mainly from the viewpoint of renewable energy positive externalities and natural monopoly.The third chapter is evaluating active price-regulation policy of Chinese renewable energy. First we analyze the overall Chinese performance of price-regulation policy. And put an overview of the development of Chinese renewable energy price-regulation policy. Then we analyze empirically the performance of renewable energy price-regulation policy in case of wind power. We can come to conclusion that there is positive correlatory relation between renewable energy price-regulation policy and the development of wind power, and renewable energy price-regulation policy has influence on the growth of wind power growth.The fourth chapter is analysis of the main renewable energy price-regulation policies. We analyze the feed-in tariffs, bidding policy and tradable green certificates policy of renewable energy concretely. And we discuss the meaning and essence of the three, then discuss theoretical basis of each price-regulation policy, analyse the impact on resource allocation, examine the adbantages and disadvantages of the three. We analyze the practice of feed-in tariffs and bidding policy practice in China, discusses the applicability problems of tradable green certificates Policy in China.The fifth chapter is comparison and applicability of the renewable energy price-regulation policy in China. We provide a survey of the policial practice of typical countries such as European and American countries, and summarize the successful experiences of Europe and the United States and other countries. Then the paper compare with the three kinds of price-regulation policy from static and dynamic efficiency. Policy goal and political environment is different, that has decided on a policy is better than the others. When regulators are in the choice of price regulation policy, they are in the lilemma that whether to support the rapid development and technical progress of renewable energy power industryt, or to improve public social welfare.The sixth chapter is some policy suggestions. This paper summarizes the main point of view, put forward to promote the development of renewable energy in China, mainly from the following several aspects:to improve renewable electricity price-regulation policies; to improve renewable energy power price-regulation angencies; to build effectiveness evaluation system of renewable energy price-regulation policy; to combine the different renewable electricity price-regulation policies; strengthen incentive policy of the renewable energy technology innovation.The seventh chapter is the conclusion. This chapter summarizes characteristics of three kinds of renewable energy price-regulation policies in static and dynamic efficiency. At present China should take the feed-in tariffs policy and bidding policy, and introduce tradable green certificate policy in certain conditions.The main innovations of the paper are:1. The paper has proved that feed-in tariffs and bidding policy are all subsidy mechanisms in essence. Feed-in tariff is very similar to allowance policy. Through the introduction of feed-in tariff, renewable power producers will receive additional payment, i.e. subsidies on each of the units of the renewable energy power. Bidding policy actually is funded by taxes too, or by other means to support. So these two kinds of price-regulation policy is essentially subsidies to the renewable power industry.2. The paper explicitly proposes that in tradable green certificates Policy the transaction market of renewable energy power essentially consists of two types of market. The two types of market are the conventional energy power market and green certificates trading market. Renewable energy power enterprises and the common energy power company are all sales the power. They all sign a power purchase agreement with Power Company; determine the online price and other related matters. In the green certificates market, renewable energy company sale certificates, at the same time, the power enterprises and power consumers can also be trading the green certificates. The pemise of making Green certificates market model come true is the value of the renewable energy to power is partially transferred to the green certificates。And the value is based on the premise that government authorites grante certificates credit value, so transactions of the renewable energy power will turn to green certificates trading.3. The paper analyzes quantitatively the relationship between renewable energy price-regulation policy and its performance wth econometric model. This paper uses the case provincial panel data of wind power in regression analysis. The former research especially the domestic scholars mainly focus on concept and basic theory of one or several renewable energy price-regulation policies. There is little relevant research on implementation effect of price-regulation policy. If we do not assess the policy performance detailly, and do not analyze the relationship between the policy and performance, that will actually hinder the policy implementation and correction of the existing problems. In this paper, the regression analysis method is introduced to performance assessment of price-regulation policy. We reached the conclusion that there is positive correlation between Chinese renewable energy regulation-regulation policy and wind energy development, and wind power growth is greatly affected by renewable energy price-regulation policy.4. The paper compares feed-in tariffs, the bidding and tradable green certificates policy from the perspective of static and dynamic efficiency. This paper uses some static efficiency indexs such as price and cost minimization and others. We carry on the comparative analysis of on three kinds of price-regulationl policy, a detailed the chapter compare specific effect, advantages and disadvantages of different indicators. We put forward different price-regulation policy hase different effect on technological progress as the representative of the dynamic efficiency. On the one hand in order to promote research and investment of power technology, on the other hand in order to reduce total costs through the mean of incentive, it must give certain technical progress rent to renewable power producers and equipment manufacturers. While the relationship between the original rent and technical progress rent may be destroyed by different price-regulation policy.