@article{32262,
  keywords = {China, CO2 emissions, Southern grid, Power Market reforms, Dispatch modeling},
  author = {Nikit Abhyankar and Jiang Lin and Xu Liu and Froylan Sifuentes},
  title = {Economic and environmental benefits of market-based power-system reform in China: A case study of the Southern grid system},
  abstract = {<p>China, whose power system accounts for about 13% of global energy-related CO2 emissions, has begun implementing market-based power-sector reforms. This paper simulates power system dispatch in China’s Southern Grid region and examines the economic and environmental impacts of market-based operations. We find that market-based operation can increase efficiency and reduce costs in all Southern Grid provinces—reducing wholesale electricity costs by up to 35% for the entire region relative to the 2016 baseline. About 60% of the potential cost reduction can be realized by creating independent provincial markets within the region, and the rest by creating a regional market without transmission expansion. The wholesale market revenue is adequate to recover generator fixed costs; however, financial restructuring of current payment mechanisms may be necessary. Electricity markets could also reduce the Southern Grid’s CO2 emissions by up to 10% owing to more efficient thermal dispatch and avoided hydro/renewable curtailment. The benefits of regional electricity markets with expanded transmission likely will increase as China’s renewable generation increases.</p>},
  year = {2020},
  journal = {Resources, Conservation and Recycling},
  volume = {153},
  pages = {104558},
  month = {01/2020},
  issn = {09213449},
  doi = {10.1016/j.resconrec.2019.104558},
  language = {eng},
}