TY - JOUR
T1 - Wind energy use under electricity supply guarantee rates
T2 - The impact of two incentive policies
AU - Wang, Xianjia
AU - He, Tianrun
AU - Zhang, Ling
PY - 2025/5/1
Y1 - 2025/5/1
N2 - Governments have adopted various incentives to promote wind energy, with Renewable Portfolio Standards and Emissions Trading Systems being among the most widely used policies. This paper explores the effects of these two incentive policies in different stages of wind energy development. We construct a regional power system consisting of a power retailer, a thermal power supplier, and a wind power supplier, where the wind power supplier needs to meet a specific guaranteed supply rate. Our findings reveal that Renewable Portfolio Standards policies lead to a 50% increase in the share of wind energy use in the early stages of wind energy development, compared to a 25% increase under Emissions Trading Systems policies. However, as wind energy technologies advance, the proportion of wind energy procured under Renewable Portfolio Standards exceeds the quota value, resulting in the policy's diminishing effectiveness in further promoting wind energy. Conversely, the boosting effect of Emissions Trading Systems policies grows with higher carbon trading prices but remains constrained when wind energy supply stability is low. We validate these insights using electricity data from U.S. states implementing Renewable Portfolio Standards and Emissions Trading Systems policies, demonstrating the nuanced roles these incentives play in shaping wind energy integration. © 2025 Elsevier Ltd.
AB - Governments have adopted various incentives to promote wind energy, with Renewable Portfolio Standards and Emissions Trading Systems being among the most widely used policies. This paper explores the effects of these two incentive policies in different stages of wind energy development. We construct a regional power system consisting of a power retailer, a thermal power supplier, and a wind power supplier, where the wind power supplier needs to meet a specific guaranteed supply rate. Our findings reveal that Renewable Portfolio Standards policies lead to a 50% increase in the share of wind energy use in the early stages of wind energy development, compared to a 25% increase under Emissions Trading Systems policies. However, as wind energy technologies advance, the proportion of wind energy procured under Renewable Portfolio Standards exceeds the quota value, resulting in the policy's diminishing effectiveness in further promoting wind energy. Conversely, the boosting effect of Emissions Trading Systems policies grows with higher carbon trading prices but remains constrained when wind energy supply stability is low. We validate these insights using electricity data from U.S. states implementing Renewable Portfolio Standards and Emissions Trading Systems policies, demonstrating the nuanced roles these incentives play in shaping wind energy integration. © 2025 Elsevier Ltd.
KW - Analytical modeling
KW - Emission trading system
KW - Game theory
KW - Renewable portfolio standard
KW - Sustainable operations
KW - Wind energy
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UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-86000759408&origin=recordpage
U2 - 10.1016/j.energy.2025.135067
DO - 10.1016/j.energy.2025.135067
M3 - RGC 21 - Publication in refereed journal
SN - 0360-5442
VL - 322
JO - Energy
JF - Energy
M1 - 135067
ER -