Study On Implementing Renewable Portfolio Standsrd In China

Since 1970s', as a result of the limitation of energy resource and the increasing pressure of global environment, lots of countries have enhanced their cognition about the importance of renewable energy, adopted a series of actions and issued many new policies and measures to promote the development of renewable energy.In all the policies and measures to promote the renewable energy, renewable portfolio standard (RPS) has significant effect and is enlightening to China. RPS is a mandatory provision of the renewable energy electricity market share in legal form issued by the nation or regional government. It means the renewable energy electricity should reach a legal proportion in the total electricity supply. It has following characteristics: 1) existing based on the law and regulations and be legally compulsory; 2) the government defines the legal amount or proportion and the eligible renewable energy resource; 3); each liability entity should take a certain quotient; 4) green certificate system are adopted to supervise and ensure the policies be carried on; 5) the liability entity could buy the green certificate from the local renewable electricity generation companies or other region via the green certificate market; 6) the roles of government are simplified to define the renewable energy target, supervise the policies execution and punish the illegal actions. As same as all the policies and measures, RPS has some natural advantage and disadvantage which we need consider.RPS is necessary for China to develop the renewable energy. 1) The renewable energy target should have legal environment and position; 2) It could embody the renewable energy outer value; 3) It could solve the problem of apportioning the gap between renewable and tradition electricity; 4) the green certificate trading market could promote to allocate the resource and capital properly; 5) RPS has good environmental and social benefits.Currently, China has the feasibility to implement the RPS. 1) China has the advantage of developing renewable energy resource; 2) RPS will promote the great development of the West; 3) The electric power system reform is the opportunity to make RPS legalization; 4) The legislation of renewable energy is the foundation of RPS; 5) The electricity tariff will not increase obviously when following the principle of"who consume, who pay".When we implement the RPS, we need completely understand the barriers and risks we will face. The three fundamental barriers for RPS in China are market, polices and regional benefit allocation. The risks are from electricity market undulation, the rise of policies execution cost, inertness after finishing the quotient and the policies invalidation. At the end, the frameworks and steps of implementing RPS in China are brought forward to discuss.