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Study on Complementary Pattern of Renewable Portfolio Standard (RPS) and Feed-in Law (FIL) in China

Author: FuZuoZuo
Tutor: MaChi
School: Zhejiang University of Technology
Course: Technology Economics and Management
Keywords: Renewable Portfolio Standard (RPS) Feed-in Law (FIL) Fixed Power Price Green Electricity Cost Sharing Formula
CLC: F426.61
Type: Master's thesis
Year: 2009
Downloads: 413
Quote: 6
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Abstract


Over the past 20 years, China’s renewable energy development has made great achievements with the help of a series of incentive policies taken by the government. However, after reformation of power system in 2002, restructure of the power industry is carried out, and the previous renewable energy development policy can not any more meet the emerging requirements right now. Making the appropriate policies to promote renewable energy development becomes a top priority.Renewable Portfolio Standard (RPS) and Feed-in Law (FIL) are two major incentive policies for renewable energy development in the world. Based the analysis on their operational mechanisms and available domestic and foreign practical experience, the differences in the objectives, the paths and the contributions are analyzed. According to the analysis, RPS and FIL have their own advantages: RPS can solve the problem of renewable energy electricity supply; while FIL can solve the problem of demand. In order to select a more suitable incentive policy, integrating theory with practice is necessary. Reviewing on the renewable energy generation technologies and the electricity market in China, it is concluded that complementary pattern of RPS and FIL is the most appropriate choice in China, and then basic framework for the complementary pattern is built.To realize the goal in complementary pattern, this paper assumes a reasonable goal for the renewable energy power generation in 2020. The polynomial model, gray systematic model and the ecological footprint model are applied to forecast energy demand and future benefits on economy, society, environment and national security. According to the results of the analysis, renewable energy projects are positive for social, environmental and national security benefits, but negative for the economic benefits. Therefore, renewable energy projects need political and financial support from the government.Finally, this paper analyzes some possible obstacles in operation of complementary pattern, and puts forward relevant suggestions for future study and policy options.

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