Chapter 9
Proposal on Large-Scale Wind Power Transmission and Accommodation Supporting Policy
Dongming Ren, Yongqiang Zhao, and Jingli Shi
Abstract
This chapter proposes several supporting policies for large-scale wind power transmission and accommodation, including establishing renewable portfolio standard; improving wind power construction administration system and policy; and planning local high energy power load.
Keywords
Construction administration system and policy; Dispatching administration and policy; Green power consumption; Local load planning; Renewable portfolio standard; Supporting policy9.1. Establish Renewable Portfolio Standard
9.1.1. System Foundation for Establishing Renewable Portfolio Standard
Renewable portfolio standard is to define the obligations of power generation enterprises, power grid enterprises, and the government in renewable energy development based on legislation. Its connotation means that according to relevant national laws, rules and regulations requiring the power provided, purchased, or consumed by the subject of quota obligation should contain a specified quantity or proportion of power generated from renewable energy. It is manifested in the renewable portfolio standard.
The protective full acquisition system of renewable energy power generation provides a legal basis for the renewable portfolio standard. In 2010, the State Council issued the Decision of the State Council on Accelerating the Fostering and Development of Strategic Emerging Industries, which requires implementing the renewable portfolio standard and the protective full acquisition system of renewable energy power generation.
9.1.2. Some Rough Ideas about Renewable Portfolio Standard
As a system promoting renewable energy development, the renewable portfolio standard not only stipulates the quota indices for local governments, power generation enterprises, and power grid enterprises but also includes provisions about selection of qualified technology, identification of the obligation subject, the way to fulfill the quota obligations, and establishment of assessment and supervision authorities. It is suggested to establish a series of systems including index release, index distribution, tracking and reporting of the obligation implementation, quota transaction, compulsory assessment supervision, information announcement, and reward and punishment.
Based on the general idea about research on China's existing renewable portfolio standard, it is suggested that the renewable portfolio standard policy system should include:
1. Technical scope. In the present stage China's renewable energy technologies integrated into the quotas administered mainly refer to non-water renewable energy power generation including wind power generation, solar energy generation, biomass power generation, geothermal power generation, and ocean power generation.
2. Subject of obligation. Local governments should assume the obligation of renewable energy accommodation quota. Identify the lowest renewable energy accommodation proportion index for all provinces (cities and autonomous regions) in China and suggest integrating this index into the assessment of local governments' energy conservation and emission reduction indices. Power grid enterprises should assume the obligation of renewable energy acquisition and transmission quota. Identify the quota index for the lowest proportion of power generated from renewable energy in the power acquired by power grid enterprises. Power grid enterprises should assume the obligation of optimizing renewable energy resources through power transmission. Power generation enterprises should assume the obligation of renewable energy power generation. In order to ensure power grid enterprises can obtain renewable energy power to complete their quota obligation, traditional energy power generation enterprises should assume the obligation of renewable energy power generation quota. Encourage large energy-consuming enterprises to take the initiative to fulfill the obligation of renewable energy accommodation.
3. Quota indices. Since local governments are the obligation subjects of renewable energy accommodation quota indices, it is suggested to consider the resources, economic development level, and energy structure of provinces (cities and autonomous regions) in China in a comprehensive way before determining the quota indices for the lowest proportion of power generated from renewable energy. Power grid enterprises should assume the obligation of acquiring and transmitting power generated from renewable energy within their operation scope based on renewable energy resources and power loads. Power generation enterprises should assume corresponding power generation quota obligations based on the proportion of their equity installed capacity in total national installed capacity.
4. Quota index period. It is suggested to select 2015 and 2020 as the assessment years and determine, assess, and issue quota indices in two stages. In other years there will be no assessment, but the quota subjects need to give public notice on their fulfillment of the quota obligation.
5. Way to fulfill the quota index obligations. It is suggested that the government should establish transferable quotas. Before establishing transferable quotas, the quota subjects should ensure that their direct power business or renewable energy power generation within their territorial scope or the accommodated power meets their quota index requirements.
6. Reward and punishment. It is suggested that national energy authorities together with power regulatory authorities should assess and supervise renewable energy quota indices. The quota regulatory authorities should reward the obligation subjects who fulfill the renewable energy quota index and punish those who fail to fulfill it.
9.1.3. Impact of Renewable Portfolio Standard on Large-Scale Wind Power Transmission
Currently, the National Energy Administration has arranged to finish the “research on wind power integration and market accommodation” and proposed that in order to strengthen the overall coordination of power development and reasonably select wind power accommodation areas we should carry out the principle of “proximity combined with expanding area” in wind power accommodation based on the market accommodation of planned wind power. First, we should fully tap the accommodation potentials of the wind power development areas and try to accommodate wind power where it is generated and for this purpose stipulate provincial accommodation indices. Second, we should give overall consideration to the regional power grids' accommodation capability and dispatch the wind power regulation capability within the region in a unified way. Third, when the wind power within the region reaches a high proportion, we should carry out long-distance transregional wind power accommodation on the basis of sufficient demonstration. As a result, we should base wind power accommodation on optimizing the operation mode and structure of the existing power system, take mature technical measures that will produce desired results soon, and give precedence to wind power accommodation within the scope of provincial and regional power grids. For ultra-high voltage (UHV) long-distance wind power transmission and accommodation, we should strengthen the research and demonstration on the transmission mode and plan and promote them after summarizing the experience.
Therefore, the renewable portfolio standard points out the basic direction and means and lays the system foundations for solving China's wind power accommodation problems arising from the rapidly increasing installed wind power capacity.
9.2. Improve Wind Power Construction Administration System and Policy
9.2.1. Improve Wind Power Project Construction Management
1. According to the national economic development plan, we suggest undertaking scientific and reasonable wind power development planning, identifying wind power key areas and development objectives in all planning periods and preventing areas that have difficulty in wind power integration, transmission, and accommodation from developing wind power ahead of time or in a disorderly way.
2. According to the national wind power development planning, we suggest undertaking scientific and reasonable power grid construction planning and adjusting wind power development planning in time based on the changes in power grid planning and power market in order to realize the overall planning and coordinated development of large-scale wind power and power grids.
3. We suggest that the Chinese central government should, based on making overall arrangements for wind power and power grid planning and construction, identify the power market of large-scale wind power transregional transmission and accommodation and define the electricity price in an overall and coordinated way in order to promote the sustained, stable, and healthy development of large-scale wind power bases.
4. We should, based on the central government's general idea on wind power transmission and market accommodation, strictly implement the overall wind power planning and annual wind power construction plans and standardize the pre-phase, approval, and construction management of wind power projects.
9.2.2. Improve Wind Power Integration Technical Standard System
We suggest strengthening wind power integration technical standard system construction and improving the integration technical performance of wind farms and wind turbines in order to alleviate the effect of large-scale wind power bases on the safe and stable operation of the power system.
Currently, the active power control, reactive power control, and low-voltage ride of wind turbines produced in China are generally poor. With the constant increase in the proportion of installed wind power capacity, it is difficult to only rely on the power grid's existing regulation and control technologies for meeting the technical requirements of rapid wind power development. The inadequate active power, reactive power, and security and stability control capabilities of large-scale wind power bases have become important factors in restricting wind power transmission and accommodation. We need to fully tap the technical potentials of wind turbines, wind farms, and other power sources to gradually improve their ability to assume wind power–related technical responsibilities.
Therefore, we suggest that the Chinese central government should improve the wind power integration technical standard and supporting policy system as soon as possible, establish the compulsory market access system, and provide guidance for enterprises in developing power grid–friendly wind power technologies.
9.3. Improve Power System Dispatching Administration and Policy
9.3.1. Stick to the Power System Dispatching Policy of Promoting Wind Power Accommodation
In order to promote wind power accommodation, we suggest that the Chinese central government should constantly improve wind power operation dispatching and stick to the principles of energy-saving dispatching, economic dispatching, and “open, fair and impartial dispatching” to ensure that the power system can have priority for wind power accommodation and accommodate wind power efficiently.
1. Implement energy-saving power generation dispatching and give precedence to ensuring wind power integration. It is clearly stipulated in the Renewable Energy Law of the People's Republic of China (Amendment) that given China implements the protective full acquisition system for renewable energy power generation, power grid enterprises should acquire all the on-grid power in integrated renewable energy power generation projects meeting integration technical standards within the scope covered by their power grids. Regulatory Measures for Grid Enterprises' Full Purchase of Renewable Energy Electricity (Order No. 25 of the State Electricity Regulatory Commission) and Administration on Energy-Saving Power Generation Dispatching (Trial) (Document No. 53 of Information Office of the State Council) further stipulate that power grid enterprises should give precedence to dispatching renewable energy power units and fully purchasing power generated from renewable energy. According to Administration on Energy-Saving Power Generation Dispatching (Trial), power grid enterprises should give precedence to dispatching renewable power generation resources on the principle of energy conservation and economy on the premise of ensuring reliable supply of power.
2. Implement economic dispatching to realize the optimization of comprehensive energy conservation and emission reduction benefits and social and economic benefits. We suggest that on the premise of ensuring the safe operation of the power system, the government should consider various additional effects on and costs of the operation of the power system after wind power integration and reasonably balance the following three objectives: (1) minimization of the operation cost of the power system (which can reflect the economic benefit of enterprises in the power system); (2) maximization of average on-grid wind power electricity of wind farms (which can reflect the economic benefit of wind power projects); (3) maximization of total on-grid wind power electricity (which can reflect the social and economic benefit). Reasonably construct safe, economic, and coordinated wind power operation dispatching model, strategy, and policy.
9.3.2. Improve Wind Power Forecasting System
As an important technical guarantee for making various power generation scheduling, balancing power generation and supply, and regulating peak load of the power grid, wind power forecasting is conducive to reasonably regulating the operation mode of other power units, balancing wind power fluctuation, reducing reserve capacity, and increasing the power system's capability to transmit and accommodate wind power. We suggest regarding wind power forecasting as an important part of future power system construction, constantly improving the forecasting accuracy and reducing the demand of wind power integration for the power system's peak-valley regulation capacity so as to improve the economic efficiency of the power grid operation and the power grid's capability to accommodate wind power.
In order to promote the application of the wind power forecasting system, we suggest that with the centralized forecasting of the power grid's dispatching department as the main mode, wind power enterprises should provide basic data for power grid enterprises in carrying out wind power forecasting.
9.3.3. Improve Peak-Valley Regulation-Oriented Ancillary Services of the Power System
The power system's peak-valley regulation capability is one of the important factors in the wind power accommodation of the power system. With the growing installed wind power capacity, we suggest strengthening and improving peak-valley regulation services.
9.3.3.1. Integrate wind power into the power grid ancillary service assessment and compensation system
After wind power is integrated into the power grid ancillary service assessment and compensation system, wind power will undertake basic ancillary services, but wind power ancillary service assessment standard should be made independently. When the whole power grid assessment fee is insufficient to pay ancillary service rewards, the total power grid ancillary service cost should be allocated to wind power based on the proportion of electricity quantity.
We suggest conducting output forecasting-based wind power peak-valley regulation assessment. The main assessment content includes “deviation between the forecasted output and the actual output of wind farms.” If the actual wind power output is lower than the forecasted output, the wind power project needs to be assessed; if the actual wind power output is identical to the forecasted output curve and the wind farm still needs to provide peak-valley regulation capacity by reducing its loads according to the requirements of the power grid, then the wind farm needs to be compensated. Reactive power control, frequency control, and black start need not be assessed.
According to China's electricity price reform requirement of “gradually implementing the mechanism of providing compensable ancillary services,” currently this part of cost is not included in the feed-in tariff of wind power. We suggest that after the ancillary service charging mechanism is established, this part of cost should be borne by wind power enterprises. Ancillary service cost can be allocated in the following ways. (1) being allocated to the whole power grid. Make compensation standards for compensable ancillary services based on the currently used principle of compensation cost and reasonable profit. For the insufficient part, ancillary service cost should be allocated to all integrated power plants to which the Detailed Rules for Implementation is applicable based on the proportion of electricity quantity on the principle of revenue based on expenditure. (2) Take into consideration the capacity value of different power sources and integrate ancillary service cost into the regional benchmark electricity price. The proportion of power units with powerful regulation capability such as pump storage units and gas turbines in the power source structure is still quite low. Power units undertaking ancillary services of the power system are still mainly conventional thermal power units and hydropower units. Therefore, thermal power and hydropower that mainly provide ancillary services should not be evaluated only based on the quantity of electricity that they provide. Instead, factors such as reduced power generation efficiency resulting from providing ancillary services and transferring power generation hours should be integrated into the assessment of electricity price formation factors so as to truly reflect the value of various ancillary services such as peak-valley regulation and frequency control. (3) Implementing the separate peak and valley electricity price mechanism, which can reflect the peak and valley power generation cost, value, relationship between power supply and demand, and actual benefits of quick adjusting power sources in the power system.
9.3.3.2. Promote transprovincial and transregional ancillary services
Conduct multilevel and multizone management on the demand and transfer of ancillary services. We suggest regulating peak load within a larger scope through transprovincial and transregional wind power transmission to alleviate the peak-valley regulation pressure in some areas. Further improve transprovincial and transregional ancillary service cost allocation mechanism and reasonably compensate transprovincial and transregional ancillary service cost through transfer payment of ancillary service cost.
9.3.3.3. Improve ancillary service trading mechanism
In the initial stage of ancillary service market construction, the supplier of ancillary services should be reasonably compensated for the cost of ancillary services. With the continuous improvement of market rules and operation mechanisms, we suggest appropriately introducing some varieties of ancillary services through which competition is easily achieved to formulate the unified ancillary service market where the compensation mode and competition mode coexist. Then continue increasing the market share of ancillary services and explore the experience of constructing competitive ancillary service market in operation. Wind farms can fulfill their ancillary service responsibilities by purchasing them in the market or negotiate with other kinds of power plants for purchasing ancillary services. The demand for ancillary services that cannot be purchased in the market should be met through the dispatching of ancillary services.
9.3.4. Strengthen Adjustable Power Sources and Transregional Power Grid Construction
Although China has established a relatively strong power system, generally it is still in the development stage and has difficulty in meeting the demand for the rapid development of large-scale wind power.
Wind power's capability to adapt to the power grid operation can be improved by means of strengthening wind power forecasting and improving the performance of wind turbines. However, the fluctuation and randomness of wind power still need to be balanced by the power grid and adjustable power sources. Therefore, we suggest that wind power development should be integrated into the unified planning of the power system, and the future development of wind power and other power sources and the power grid in China should be planned as early as possible, which includes: strengthening the power grid construction in areas where wind power is concentrated; focusing on the layout and construction of power sources with powerful regulation abilities (such as pump storage and gas power generation); encouraging the production and application of thermal power equipment with deep regulation abilities; and meanwhile accelerating the construction of tie lines of transregional power grids in order to improve the power grids' overall regulation capability within a larger scope and meet the requirements for developing large-scale wind power and photovoltaic power bases.
9.3.5. Reasonably Curtail Marginal Wind Power in Extreme Conditions
We suggest allowing a certain degree of wind power curtailment in special periods. Although some marginal wind power is lost, the power system is prevented from paying expensive marginal cost of peak-valley regulation for ensuring the power system security. It is economical from the perspective of the whole power system.
There must be a protective system for wind power curtailment. (1) Study and determine wind power curtailment conditions. Determine wind power curtailment conditions based on load characteristics and peak-valley regulation capabilities. (2) Suggest reasonably compensating wind power enterprises for wind power curtailment. (3) Identify the overall wind power base construction planning and determine the reasonable construction of power grid supporting facilities to reduce wind farms' wind power curtailment maximally.
9.3.6. Make Rewarding and Punishment Policy Based on Wind Power Integration Technical Performance
China has yet to establish the incentive mechanism to improve wind power integration technical performance. We suggest making power grid–friendly and electricity price–focused reward and punishment policy based on wind power projects. On the basis of improving wind power forecasting, further make the power grid–friendly incentive policy based on wind power output forecasting. For example, for wind farms that meet wind power planning and technical regulations of the power system and whose forecasting accuracy reaches a certain standard, make normal settlement and give precedence to them in purchasing wind power. If the forecasting error exceeds a certain rate, the part of the generated wind power exceeding the forecasted quantity should not be purchased and the wind farm should be punished. In order to encourage renewable energy power generation enterprises to improve their management level, we suggest developing and using advanced new technologies such as wind turbines, energy storage technologies, on-grid output regulation, and reactive power control that can improve the integration technical performance of renewable energy power generation projects and studying and making difference-oriented electricity price and economic compensation policy based on the quality of renewable energy power.
9.4. Reasonably Guide Local High Energy Power Load
9.4.1. Application of Wind Power in the High Energy Load Field and Its Operation Mode
Wind power can be directly used in high energy load industries mainly including nonferrous metals industry focusing on electrolytic aluminum, salt chemical and chlor-alkali industry, large-scale desalination of sea water, deep-processing industry chain with nonmetal as raw materials, electric vehicle manufacturing industry, and large-scale electrolytic hydrogen production. In addition, make choices based on the industrial structure and planning of the area where the wind power base is located. For example, for the application of high energy load in the steel, petrochemical, and silicon industries, after the peak-valley regulation, wind power can be bundled with other power sources or accommodated on a large scale.
Wind power directly used in high energy load industries has many operation modes:
1. Wind power–grid power mode. Wind power can be operated together with grid supply. Try to focus on wind power and use grid power as an accessory power supply to formulate wind power–high energy load industry chain.
2. Wind power–power storage mode. With technical progress, the economic efficiency of large-scale energy storage technology application has prominently improved. In areas where wind power does not fluctuate much, formulate the power supply mode of relying on wind power for supply and on stored power for regulation to greatly improve the equilibrium of wind power and power quality. Residential power consumption will be completely supplied by wind power.
3. Wind power–grid power–power storage combination mode. This mode can give full play to the characteristics of three power sources. In this mode the three power sources can complement each other's advantages and wind power can be accommodated maximally.
4. Wind power–peak-valley regulation power source mode. Construct supporting peak-valley regulation power sources near wind power bases and wind power will be supplied to load after peak-valley regulation.
5. Wind power–captive power plant peak-valley regulation mode. Many high energy-consuming enterprises have their own captive power plants used for power supply, heating, and comprehensive use of resources. Captive power plants that focus on power supply and have no surplus heat, gas, or load adhered to their main business can be directly or after technical reconstruction used for wind power peak-valley regulation to improve wind power accommodation capability.
6. Wind power direct current (DC) power supply mode. The DC power transmitted by wind power is delivered to DC loads to reduce inversing and rectifying the circuit. This mode is characterized by low loss and high stability. If it can be combined with large-scale energy storage, their advantages can be exploited to the full.
9.4.2. Application of Wind Power to High Energy Load in the Nonintegration Mode
The nonintegration mode, namely, using wind power directly for terminal load, refers to the mode in which wind power is directly supplied to consumers instead of entering the public power grid. There are two kinds of nonintegration mode: (1) supplying DC and (2) supplying alternating current (AC) through the inversing technology. The conceptual test of this mode was completed in Tsinghua University in 2006, and other relevant tests were completed in Northeastern University State Key Laboratory of Aluminum and Magnesium in 2007. Results indicate that with proper supplementation of the power grid, wind power can be used for the normal production of electrolytic aluminum in which wind power accounts for 81% of power consumption.
Directly applying wind power to high energy load is an effective way to alleviate large-scale wind power accommodation pressure. However, the nonintegration mode is only a special means of integrated wind power operation and it will be difficult to make substantial progress in large-scale wind power base application in the near future.
9.4.3. Application of Wind Power to High Energy Load in the Integration Mode
The grid integration mode refers to the mode in which wind farms send wind power into the public power grid and then supply power to loads through the power grid. There are two kinds of integration mode: One is the “direct power supply” mode, namely, wind power enterprises sign power supply agreements with consumers, transmit power through the public power grid, and directly supply designated consumers with power without peak-valley regulation or with peak-valley regulation of peak load regulating power source. The other is the general power supply mode in which with no designated consumer, the wind power is integrated into other conventional power after being transmitted into the power grid that supplies power to local consumers.
Compared with the “nonintegration power supply” mode, with the support of the public power grid, the integration power supply mode is characterized by better flexibility, ensured power quality, and lower requirements for consumers' peak-valley regulation capability. Wind power purchased by the power grid can be used for local general industrial load in the general mode or be supplied to designated industrial consumers in the “direct power supply” mode. In the general power supply mode wind power enterprises and consumers do not directly form the supply and demand relationship. The power demand and quality of consumers is mainly met by the power grid. The calculation of wind power accommodated by consumers will be measured by the power grid company based on supply-and-demand load variations. In the “direct power supply” mode wind power enterprises and industrial consumers sign the power purchase agreement to determine the quantity and price of power to be purchased, and the power grid company transmits power at the price stipulated in the agreement.
9.4.4. Application of Wind Power in the High Energy Load in the Direct Power Purchase Mode
The direct power purchase mode can be used for wind power accommodation in the following ways:
1. For the stock load of high energy load enterprises with captive power plants that should be shut down, wind power can be accommodated through trading of generation rights, combination of construction rights of peak load regulating power source, and direct power purchase. For captive thermal power plants that should be shut down, the transaction mode of transferring generation rights can be adopted. Power generation enterprises purchase the generation rights of captive power plants to construct peak load regulating thermal power and directly supply “wind power bundled with thermal power” to owners of the original captive power plants at the agreed-upon price lower than the benchmark price.
2. For the stock load of those high energy load enterprises with large captive thermal power plants that cannot be shut down at present, encourage enterprises to reduce their own power generation and consumption and to purchase more wind power or wind power bundled with other power sources after peak-valley regulation.
Although the direct wind power purchase mode used for high energy load is conducive to solving the problem of large-scale wind power accommodation, direct power purchase pilot projects still have some problems. What's more, it is estimated that it will be difficult to promote it universally in large-scale wind power bases.
9.5. Encourage Green Electricity Consumption
9.5.1. Establish Green Electricity Market Based on Voluntary Purchase
The term “green” in the green electricity refers to the power generation process. Compared with thermal power generation, renewable energy power generation does less damage to the environment. For consumers who purchase electricity through the power grid, it is difficult for them to tell whether the electricity they use is from wind farms or thermal power plants. With the people's rising environmental protection awareness and green product awareness, the market demand for green electricity products is gradually being formed.
9.5.2. Main Content of Green Electricity Market
9.5.2.1. Green electricity market positioning
Potential consumers of green electricity include governments (especially main government departments that can promote renewable energy development and environmental protection), schools, green environmental protection organizations, world top 500 enterprises' branches or offices in China, residential consumers with strong environmental protection awareness and high income, and enterprises facing green barriers.
9.5.2.2. Green electricity product design
In developed countries such as Holland and the US renewable energy power is regarded as a special power product different from common power. It has separate product design and is usually launched in the form of a green electricity price project. We suggest learning from these foreign countries and dividing green electricity market products voluntarily purchased into two kinds:
2. In addition to meeting power consumption, green electricity including electricity generated from renewable energy such as wind power and photovoltaic power is supplied to special groups of people.
9.5.2.3. Green electricity price
In view of China's present electricity price structure, we suggest adopting the principle of difference pricing. To be specific, for renewable energy power generation projects in the green electricity market, the electricity price is composed of two parts. The part equivalent to the average feed-in tariff is sold to the power grid through normal power purchase and sales channels, and the part higher than the feed-in tariff should be purchased by consumers voluntarily. If consumers purchase a certain amount of green electricity, in addition to the original electric charge, they should pay some additional cost (the difference between the green electricity price and the feed-in tariff × the amount of green power purchased).
In the short term, the difference between the green electricity price and the feed-in tariff will still be determined and approved by relevant government departments. After the power market develops into a mature stage, the difference between the green electricity price and the feed-in tariff will be decided by the supply and demand in the power market. In other words, if consumers are willing to pay an additional price for the green electricity, green electricity manufacturers will decide whether they have the motivation to provide green electricity at this price.
9.5.2.4. Green electricity product marketing
Green electricity product marketing refers to the management process in which, in order to promote sustainable development and achieve the unification of economic benefits, consumers' demand, and environmental benefits, the main body of the market has other main bodies of the market meet the demand by creating and exchanging products and value. Different from traditional marketing, it is a kind of marketing activity focusing on environmental responsibility and with the sustainable development of the society and enterprises as the ultimate goal.
9.5.3. Supporting Policies of Promoting Green Electricity Consumption
Due to Chinese citizens' lack of knowledge about green electricity, we suggest strengthening promotion of knowledge about green energy and environmental protection awareness. In addition, the biggest barrier to implementing the trading mechanism of green electricity that is voluntarily purchased in China is the higher green electricity price. As a result, we put forward the following suggestions for implementing a green electricity trading mechanism in China:
1. Promotion policy. Strengthen promotion about green electricity and have more consumers understand green electricity through continuous public promotion and consumer education. Provide people with guidance for using green electricity products and cultivate consumers' green consumption concept through the expressing, exhibiting, and promoting of appeals such as limited resources, seriously damaged ecology, and the social value and economic value of green consumption.
2. Green electricity trading policy. We suggest, before the full linearization of the retail power market, promoting the opening of green electricity market, encouraging power grid companies to offer electricity consumers the green electricity choice, and setting demonstration areas with proper conditions where the difference between the green electricity price and feed-in tariff is decided through market competition; gradually establishing a green electricity certification system; having power grid companies make public to consumers relevant environmental information, for example, the combination of electricity generation modes. The government should take the lead in purchasing green electricity and play an exemplary role in the market.
3. Fostering a green electricity market. Surveys indicate that in China's major cities there is huge potential demand for green power consumption. However, the market share of green electricity is quite low in the real market. We need to further strengthen the organization and planning for the green electricity market and change consumers' potential consumption intention into the real market share.
4. Policy of encouraging green electricity consumption. We suggest that the government should take various measures to provide green electricity consumers with material rewards and spiritual encouragement. Give incentive to green electricity trading based on voluntary purchase of green electricity by consumers, including providing prominent green electricity consumers with honorary titles and some tax preferences and motivating enterprises and individuals to consume green electricity.
5. Reducing cost. We suggest that the government should take some measures and issue some policies to change external environmental cost into internal cost, narrow the price difference between renewable energy and conventional energy, and reduce customers' monetary cost of green electricity consumption. Simplify operation process as much as possible, maximally reduce consumers' time and spiritual cost of purchasing green electricity, and reduce consumers' nonmonetary cost.
6. Green electricity product policy. We suggest that in the present stage green electricity products in China should mainly include wind power, photovoltaic power, and biomass power to reduce consumers' sensitivity to price.
7. Green electricity price policy. We suggest coordinating with other taxes related to ecological environment protection in determining future green electricity price policies.
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