How to promote the effective implementation of China's Renewable Portfolio Standards considering non-neutral technology?

Renewable Portfolio Standards (RPS), as the strategic requirement effectively fits the top-level institution design of China's low-carbon energy transition, will help to promote China's energy structure optimization and power market reform. The success of its implementation depends on the scientific quasi parameters design of the system. At present, China's tradeable green certificate (TGC) market is still in the voluntary trading stage. There are differences in natural attributes and transaction prices, resulting in the market segmentation and market distortion of the TGC market. Considering the non-neutral technology, this paper uses system dynamics to construct a long-term trading model under China's RPS, and analyzes the impact of relevant system quasi-parameters on the market trading process. The results show that:(1) The scientific quasi-parameters design of the RPS, such as technical conversion coefficient, TGC valid period, TGC benchmark price and RPS quota, will encourage and guide manufacturers to conduct TGC transactions, which will promote the development of renewable energy. (2) The introduction of the technical conversion coefficient can effectively promote TGC transactions, improve China's social welfare and optimize the power source structure. Therefore, the scientific design of the relevant quasi-parameters and strengthening of the supervision mechanism are conducive to implementing the RPS effectively in China. (c) 2021 Elsevier Ltd. All rights reserved.

Automated summary

Renewable Portfolio Standards (RPS) as a strategic requirement that fits China's top-level institution design for low-carbon energy transition, will help promote China's energy structure optimization and power market reform. The successful implementation of RPS depends on the scientific quasi-parameters design of the system.