Study On Relationship Between Electricity Price Mechanism And Energy Conservation

Energy-poor and environment deterioration became the bottleneck of the economic and social development in China. Energy conservation, emission reducing and renewable energy development were the most important things in front of us, and which is the only way to achieve the sustainable development for our country. However, the current energy conservation and emission reduction in China is still mainly carried out by the government using administrative orders. The majority of the users were not actively participating in energy conservation and emission reducing. Administrative order is not a long-term solution, only suitable for the initial stage. The study on energy conservation mainly focuses on technology. But only with the responses of the users can energy-saving technology be carried out. However, to promote the users saving energy actively depends on the market measures. The price mechanism is such an effective method for the energy conservation and emission reduction. The power industry is the main consumers for primary energy, and it provides various industries of the national economy with secondary energy. The energy consumption of the various industries mainly reflected in the power consumption. The power industry plays an important role for energy conservation and emission reduction. This thesis will focus on the relationship between electricity price mechanism and energy conservation.The characteristic of power energy could not be stored in large-scale, it determines that the balance of power supply and demand is important for energy conservation. However, the balance of power supply and demand is impacted by the power price. So the relationship of the balance of power supply and demand, power price and energy conservation was explored in this thesis.Energy conservation of power industry includes two parts: one is the power supply side, which also includes the energy conservation and emissions reducing of the power plant and the transmission and distribution line loss of the power grid enterprises; another is energy conservation on the demand side. In this thesis, the relationship between power price and energy efficiency was studied by decomposition of the chain of power price. This thesis explored the relationship respectively from the on-grid power tariff and energy conservation and emission reduction, the power transmission and distribution price and energy conservation and line loss reduction, the retail tariff and energy conservation and consumption reduction. The role of the three price mechanisms to energy conservation of the links was discussed in detail. The problems of the current electricity price mechanism were pointed out and the proposals about the reform of the current electricity price mechanism were suggested from the energy conservation view.Energy conservation on demand side is the core of the task about energy conservation and also the important part of this thesis. Energy conservation on demand side mainly include the adjustment of industrial structure, enhancement on awareness of energy conservation, improvement on end-user energy efficiency and change on electricity using methods by technology development, and advancement on rationality of power using. Demand Side Management (DSM) is an important method to achieve energy conservation on demand side, and it is also an efficient means to improve DSM by retail tariff mechanism. The two-part system electricity price, power factor regulating tariff , peak-valley TOU electricity price, interruptible-load electricity price, differential electricity price, seasonal electricity price (wet and dry season electricity price), incremental-type step tariff are fit for energy conservation and consumption reduction. The relationships between these electricity price mechanisms and energy conservation were analyzed detailed in this thesis. Today we pay no attention to residents energy conservation enough, and resident electricity price is too cheap, which seriously restrained the residents to save energy. So this thesis emphasized the study on relationship between electricity price and energy conservation. Furthermore, this thesis also proposed the TOU model based on customer response, two-part system electricity tariff formula and the case, set electricity price adjustment formula to solve the problem about tapping the potential and improving efficiency and decreasing the loss of power plant in coal and electricity price linkage mechanism. The thesis also presented the view that power load rates should be assessed to the user. Then, the relationship of electricity price mechanism and energy conservation was tested by analysis detailed to Shanghai Volkswagen Automobile Co. Ltd as an example.