Cooperation and Profit Allocation Mechanism of Traditional and New Energy Complementary Power Generation: A Framework for Renewable Portfolio Standards

Abstract

To boost the sustainable development of energy and the environment, a new power system with clean energy sources has been proposed by the Chinese government and traditional coal-fired power units are being transformed into regulation service providers for this new energy power system. Then, in this study, complementary power generation cooperation between traditional coal-fired power and new energy power producers is analyzed and discussed, and the energy quota agents, power sellers, are also included. Based on the cooperation game idea, different decision-making models of the tripartite power entities are elaborately constructed. Then, according to the price linkage mechanism between new energy and traditional thermal power, the profit of all power subjects is calculated and the profit allocation process is also analyzed. The conclusions show that the similarity of the two wholesale power price coefficients verifies the symmetry of the cooperative status of power producers. For BPC and SPC quota patterns, for example, BPC is bundled with new energy power and green certificates, whereas SPC is separate. Under the SPC pattern, there is a critical value for effective cooperation between the two power producers in the price range of traditional thermal power or new energy, which can achieve a win–win situation of increasing economic benefits and the consumption scale. Under the BPC pattern, the dynamic benefit compensation mechanism, which is the corrected Shapley value based on the RPS quota ratio, can solve the compressed profit of traditional coal-fired power producers. In contrast, the overall effect of profit allocation using the nucleolar method is not ideal. This study aims to give full play to the elastic induction effect of RPS to promote the sustainable transformation of traditional thermal power energy, especially combining the market mechanism to encourage traditional coal-fired power units to improve green technology to advance the construction of the green power market in China.