China officially implemented the renewable portfolio standard (RPS) on 1 January 2019, and it remains uncertain as to whether this can effectively solve the problem of renewable energy consumption in China and ease the pressure of government subsidies. In order to study the impact of this policy on China's renewable energy power generation and explore RPS policy that is more suitable for the characteristics of China's renewable energy, we first develop a revenue function model based on the just released RPS policy to explore the effectiveness of the policy, the feasibility conditions for successful implementation, and the problems that may be encountered during the implementation process. Then, we propose policy recommendations based on the possible problems of the current policy and design an "incremental electricity price" supplementary policy to improve the possibility of successful implementation of the RPS policy. Finally, an evolutionary game model is established to simulate and verify the possibility of successful implementation of the supplementary policy. The main research results are: (1) the essence of the current RPS policy is the comprehensive implementation policy of the RPS and feed-in-tariff (FiT); (2) because of the characteristics of China's energy structure, the implementation of this policy reform is more resistant; (3) the quantitative research on the revenue function model shows that the current transaction price of the green certificate market is very low, which is not conducive to alleviating the state's subsidy pressure on renewable energy power generation; and (4) analysis of empirical data shows that the successful implementation of the "incremental electricity price" policy relies on the initial strategies of grid companies and users. , the feasibility of successful implementation, and the problems that may be encountered during implementation. Then, based on the above analysis, a policy more suitable for the development of China's renewable energy power generation is designed to improve the possibility of successful implementation of the RPS mechanism in China.
Review of the Literatures
Research on Renewable Portfolio Standard Policy ApplicationThe number of FiT adopters increased from 2 in 1990 to approximately 70 in 2018, while RPS adopters increased from 1 in 1999 to approximately 15 in 2018. Countries from every geographic region and income level have adopted these policies. Contrary to what rational self-interested actors would do based on costs, benefits, and utility maximization, some of the top oil exporters in the world have adopted RPS or FiT. These countries include Iran and the United Arab Emirates in the Middle East, Kazakhstan in Asia, Nigeria and Algeria in Africa, Norway and the United Kingdom in Europe, and Brazil in the Americas and so on [11][12][13].The analysis of an effective support policy is the basis for promoting the development of renewable energy. Like China, several other countries have also experienced policy reforms from RPS to FiT or from FiT to RPS. Ac...