The Study Of Deciding The Policy Of Wind Power Generation In China

This paper studies the available policies of the wind power industry, i.e. how to choose among the three policies, namely the Feed-in Tariffs (FIT), the Tender System (TS), and the Renewables Portfolio Standard (RPS), according to the development of the technology and the actual condition of China. This paper follows the framework of The Contingent Approach, that is, wind power technology and China’s actual condition are taken as the context, and the three dominant policies are compared to find out the one most applicable to this context. The applicability criterion applied here is the fitness of a candidate policy to the specific context, i.e. whether the candidate policy in the context can work well and help to realize the given wind power deployment goal with sound cost. Chapter4investigates the fitness of these three policies as the promotion policy for wind power generation, which including two parts:the first part investigates the appropriateness of the tender systems (TS) as wind power promotion policy in China. This part discusses the fact that China’s wind power concession tenders have been denounced and opposed time and again in recent years. Based on economic theory on pricing and empirical evidences, showing that the TS objectors had exaggerated the detriment of the low prices resulted from concession tenders, and use a two-stage Bertrand model to analyze the fitness of TS. The second part evaluates relative desirability of the three dominant policies under practical constraints. Use an optimal situation where the three policies are perfectly equivalent as a benchmark to evaluate the cost by introducing constraints like technology development and execution limits of the policy. And tender system had the lowest cost. Introduce real constraints into the theoretic work comparing the three dominant policies--which extends current theoretic analysis and results in explicit conclusions.