Study On Price Subsidy Mechanism Of Renewable Energy Based On Carbon Emissions

In recent years,with the aggravation of greenhouse effect,the industry is constantly exploring new ways to alleviate this problem,which is considered as one of the main challenges in the 21st century.China’s Intended Nationally Determined Contributions（INDC）were announced to achieve a carbon dioxide（CO₂）emissions peak around 2030.Power sector is one of the most important sources of carbon emissions in China.In December 2017,the National Development and Reform Commission（NDRC）launch the national carbon emissions trading system（ETS）.At its initial stage,the system will only cover major emitters in the electricity generation sector.Under this background,the development of renewable energy power generation industry cannot be promoted by market alone.It is necessary for the government to formulate electricity price subsidy mechanism to stimulate the development of renewable energy power generation industry in order to achieve carbon emission reduction in electric power industry.The main work and results of the research conducted are summarized as follows:First of all,the study investigates a problem of allocation of carbon emission quotas based on Boltzmann distribution model for power supply area of China Southern Power Grid Company Limited（CSG）.The relationship between Boltzmann distribution parameters and carbon emission quotas and carbon emission demand is analyzed in detail,and the results of carbon quota allocation based on Boltzmann distribution and historical emission method are compared and analyzed.Research shows that,compared with the historical emission method,the difference ratio of allocation of carbon emission quotas based on Boltzmann distribution fluctuate in a smaller range,which shows that the method is more in line with the principle of fairness.Secondly,a multi-objective model for carbon emission allowance allocations in the power supply industry in Guizhou province by the method of allocation of carbon emission quotas based on Boltzmann distribution model is presented.After employing a weighted minimum module ideal point method,the multi-objective programming problem is simplified.The results shows that allocation schemes of carbon emission quotas for hydropower,thermal power,wind power and solar power generation with the different weights for multiple objectives.The method make the allocation of carbon emission quotas for the four different energy generators more flexible.Thirdly,under the constraint of carbon emission quotas,the Stackelberg game model of the renewable energy power producer and the power grid is established.This paper explores the effects of demand price sensitivity coefficient b on optimal electricity price subsidy^*,expected profit of the renewable energy generator and expected variance utility of the power grid.This paper also analyses the effects of optimal electricity price subsidy^*on the power generation,the expected profit of the renewable energy generator and the expected variance utility of the power grid.Based on the method of allocation of carbon emission quotas based on Boltzmann distribution model and carbon dioxide spillover effect,the profit optimization model of the non-renewable energy power producer is established.The relationship among demand price sensitivity coefficient b,carbon dioxide spillover effect parameterηand Boltzmann distribution parameterβis studied.Under the two conditions of considering carbon dioxide spillover effect and not considering carbon dioxide spillover effect,change trend and reason of expected profit of the non-renewable energy power producer with Boltzmann distribution parameterβare analyzed and compared.Subsequently,the relationships among optimal electricity price subsidy^*,carbon dioxide spillover effect parameterηand Boltzmann distribution parameterβare analyzed.When the Boltzmann distribution parameterβis constant,the relationship between carbon dioxide spillover effect and optimal price subsidy of renewable energy is studied.The results show that the carbon emission quotas compensated by areas where power is transmitted to areas where power is produced and optimal price subsidy of renewable energy both increase with the carbon dioxide spillover effect parameter.Finally,on the premise of free allocation of carbon emission quotas,the paper provides some policy suggestions for the allocation of carbon emission quotas for renewable energy generators and non-renewable energy generators and the formulation of electricity price subsidy mechanism for renewable energy generators in Guizhou Province.