Panel Paper:
Reforming China’s Power Generation Dispatch Rule: Why Is Merging Provincial Dispatch Zones Inherently Challenging Yet Absolutely Necessary?
*Names in bold indicate Presenter
Intrigued by the above policy imperative, this paper investigates the necessity and feasibility of merging China’s provincially fragmented dispatch operations into regional electricity markets. It is organized into three parts. First, given the lack of established knowledge in the existing literature, this paper describes, comprehensively, the historical, technical, economic and political contexts that give rise to China’s current generation dispatch practices. Rules and institutions that govern inter-provincial electricity flows are emphasized. Second, drawing on both theoretical and empirical studies that shed light on the design, operation and efficiency of regional electricity markets, this paper develops and proposes a conceptual framework for establishing regional electricity market institutions in China – its economic potentials and risks, political challenges and legal implications. Third, to verify the conceptual development with empirical findings, this paper analyzes three cases of the three ever regional wholesale electricity market pilots in China – two [1] of which were conducted between 2003 and 2006, and one [2] only recently in 2016. Descriptive documents, agency records and data from key stakeholder interviews are pulled together to construct these cases. Process tracing is employed for the analysis, and results reveal a few key lessons that are fundamental to institutionalizing functional regional electricity markets in China.
Full Paper:
- China's Power Generation Dispatch.pdf (1071.6KB)