Is RPS Any Better Than FIT? Analysis of Policy Effects in a Deregulated Power Market

DOI

10.2991/assehr.k.210513.074How to use a DOI?

Keywords

Renewable Energy Price Policy, Power Generators, Capacity Investment, Policy Effects

Abstract

China implemented the Feed-in Tariff (FIT) policy in 2013, but now the Renewable Portfolio Standard (RPS) policy is in place in its deregulated power market. The FIT and RPS policy, as two most widely used renewable energy price policy, they both have successful and failure cases. This paper is aimed at presenting the function mechanism of these two renewable energy price policies in theory as well as the comparison of their policy effects. These two policies are modelled and introduced into the deregulated power market. The equilibrium results show that the government subsidy for renewable power with the FIT policy is more effective to promote the investment of renewable power and restrain the investment of traditional power. However, with the RPS policy, setting of the renewable power quota may be a challenge because it not only inhibits the investment of renewable but also the traditional power. In the comparison of the two policies in policy effects, we show that follow the FIT policy, the implementation of RPS policy will lead the power price increase, consumer surplus and social welfare decrease.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Cengceng Liu
AU  - Nan Li
AU  - Qin Zhang
PY  - 2021
DA  - 2021/05/14
TI  - Is RPS Any Better Than FIT? Analysis of Policy Effects in a Deregulated Power Market
BT  - Proceedings of the 6th International Conference on Education Reform and Modern Management (ERMM 2021)
PB  - Atlantis Press
SP  - 319
EP  - 327
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210513.074
DO  - 10.2991/assehr.k.210513.074
ID  - Liu2021
ER  -