深化电力体制改革_解决弃风限电问题（英文版）_38页_2mb

Summary of "Fixing Wind Curtailment with Electric Power System Reform in China"

Core Content

This report examines the issue of wind curtailment in China and its underlying institutional causes. Wind curtailment refers to the reduction in electricity generation below what a well-functioning wind turbine system is capable of producing, resulting in significant economic and energy efficiency losses. In 2016, China's wind curtailment reached 49.7 TWh, equivalent to the total annual electricity consumption of Bangladesh, and could have reduced CO₂ emissions by 42 million tons if fully utilized.

The report identifies the root causes of wind curtailment as being tied to the structure of China's electricity regulatory framework, which is characterized by a fragmented authoritarianism model. This model is defined by a rigid hierarchy, strong state control, and limited market mechanisms. The electricity sector is dominated by state-owned enterprises (SOEs), and power generation, transmission, and allocation are still largely managed by the government, especially at the provincial level.

Main Points

• Wind Curtailment Overview:

  • Wind curtailment is a recurring issue in China, with two major waves since 2010.
  • In 2016, the national average curtailment rate was 17.1%, and in some provinces like Gansu, it reached 43%.
  • Despite government measures, the problem persists, indicating institutional rather than technical causes.

• Economic and Environmental Impact:

  • Wind curtailment leads to substantial economic losses, with power producers losing 18.7 billion RMB in 2016.
  • It also results in significant energy waste and potential environmental benefits being unfulfilled, as wind could have replaced coal and reduced emissions.

• Institutional Causes:

  • Vertical Fragmentation: Regulatory authority is split between the central government and provincial governments, leading to inconsistent policies and poor coordination.
  • Horizontal Fragmentation: Responsibilities are scattered across different ministries and departments, creating inefficiencies and misalignments.
  • SOE Dominance: Grid companies and generation companies have strong bargaining power, further complicating the system.
  • Lack of Coordination: The absence of a unified national grid plan and the reliance on decentralized planning have led to transmission constraints, system imbalances, and overcapacity.

• Policy Context:

  • China has implemented several policies to address wind curtailment, including guaranteed minimum purchase hours, monitoring and warning mechanisms, and renewable quotas.
  • However, these policies have not been effective in reducing curtailment rates significantly, with many provinces failing to meet targets.

Key Players and Their Roles

Case Studies

• Jiuquan City, Gansu Province: Home to China's first 10-GW wind power base, it is a major center for wind curtailment due to its location in the Three North region and limited local demand.
• Tongyu County, Jilin Province: Part of a 10-GW wind power base in the northeast, it also experiences high wind curtailment rates due to similar institutional and regional challenges.

Policy Recommendations

• Establish Regional Spot Power Markets: To facilitate renewable energy integration and break down inter-provincial barriers.
• Expand Renewable Quotas and Green Certificates: To incentivize the utilization of wind power.
• Improve Coordination: Both vertically and horizontally, to align planning and ensure efficient transmission and distribution.
• Strengthen Market Mechanisms: Develop ancillary service trading and optimize power system structure to support a more mature and efficient power market.

Conclusion

China's wind curtailment problem is deeply rooted in its electricity regulatory framework, which is fragmented and dominated by SOEs. While the country has made significant investments in wind energy, the institutional structure has hindered the effective utilization of this resource. Addressing wind curtailment requires a more coordinated and market-oriented approach, including the development of regional spot markets and improved inter-provincial power transactions. The report emphasizes that without institutional reforms, the curtailment issue will continue to persist, despite technical improvements.