Regional Renewable Energy Installation Optimization Strategies with Renewable Portfolio Standards in China

Abstract

In this paper, we provide theoretical and policy support for quota-allocation strategies based on a national unified renewable energy (RE) power market. Renewable portfolio standards (RPSs) are of great significance in promoting the stable development of renewable energy and improving power market decision making in China’s power industry. To resolve the geographical, resource allocation, and power-grid problems of multi-regional RE power generation, we constructed a regional distribution optimization model with the lowest cost under the RPS policy and designed a set of dynamic distribution mechanisms based on the renewable energy power quota index. The results show that it is necessary to prioritize development of wind-generated power on the North China and Northeast Power Grids, solar energy on the Northwest Power Grid, and biomass energy generation on grids in other regions to plan specific task undertakings and allocate RE power generation to each grid. We propose a multi-regional power distribution model at the lowest cost under the RPS policy to provide solutions and references for renewable energy power market quota allocation.