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Energy Market Reform and Sustainability

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Energy Sustainability".

Deadline for manuscript submissions: closed (30 September 2021) | Viewed by 9181

Special Issue Editor


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Guest Editor
STM College, University of Saskatchewan, Saskatoon, Canada
Interests: energy and environment; innovation and productivity; applied economics; development economics

Special Issue Information

Dear Colleagues,

Energy is a major input in all economic activities and has contributed significantly to prosperity across the world, particularly in industrialized countries, for the past century. However, the growing concerns regarding the deteriorating environmental impacts of fossil fuel use have brought into question the sustainability of the existing models. In recent years, academia and policy makers around the world have been developing and trying new models for energy production and use with various degrees of success. Energy market reforms, which have been designed and implemented in different forms in both developed and developing countries, are at the center of these models. While the reforms in some countries have primarily focused on changing incentives through price mechanism, such as reducing subsidies or levying taxes on fossil fuels and allocating subsidies to renewable energy, they have targeted the market structure and institutions in other cases.

In this Special Issue of Sustainability, we aim to critically review the energy market reforms and the lessons learned from their successes and failures across the world. The issue will consist of both theoretical and empirical papers with novel methods applied to experiences in both developed and developing countries. The papers will also deal with different types of energy, i.e., fossil fuels, renewable energy, primary resources, final products, and different sectors of the economy, i.e., households, firms, manufacturing, agriculture, and transportation. Original research papers providing rigorous analysis of the heterogeneous impacts of energy reforms on households with different income groups and compensation package are also welcome.

Assoc. Prof. Saeed Moshiri
Guest Editor

Manuscript Submission Information

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Keywords

  • energy market reform
  • energy subsidies
  • fossil fuel
  • renewable energy
  • price reform
  • structural reform
  • environment
  • sustainability

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Published Papers (3 papers)

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Research

12 pages, 3234 KiB  
Article
Alterable Electricity Pricing Mechanism Considering the Deviation of Wind Power Prediction
by Qinqin Cai, Yongqiang Zhu, Xiaohua Yang and Lin E
Sustainability 2020, 12(5), 1848; https://doi.org/10.3390/su12051848 - 1 Mar 2020
Cited by 1 | Viewed by 1822
Abstract
Fluctuation and prediction errors of wind power would cause a large amount of automatic generation control (AGC) adjustment costs, which lead to the problem of power curtailment. A reasonable mechanism of grid-connection electricity price may encourage wind farms to take measures to reduce [...] Read more.
Fluctuation and prediction errors of wind power would cause a large amount of automatic generation control (AGC) adjustment costs, which lead to the problem of power curtailment. A reasonable mechanism of grid-connection electricity price may encourage wind farms to take measures to reduce the deviation between output power and schedule power, which is helpful for source-network coordination and reducing wind power curtailment. An alterable electricity pricing mechanism considering wind power deviation rate is proposed. In each schedule cycle, electricity price is adjusted according to the deviation rate and its historical change trend. In this way, wind farms will be encouraged to configure energy storage to promote the accordance of wind output power with schedule power to the greatest extent. Given the statistical characteristic of prediction errors of wind power, this paper proposes a schedule power model, taking least squares of output power deviation as objective function, and then puts forward an engineering application method for determining schedule power. This paper analyzes the overall cost and revenue of a wind farm to configure energy storage and determine the optimal energy storage capacity with the goal of maximizing the profit of the wind farm. In the case analysis, the effect of the deviation rate and its historical change trend, the deviation rate tolerance coefficient on electricity price is analyzed. The case analysis demonstrates the effectiveness of the proposed alterable electricity pricing mechanism and shows that the mechanism is helpful at reducing wind power output deviation and wind curtailment. Full article
(This article belongs to the Special Issue Energy Market Reform and Sustainability)
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24 pages, 2594 KiB  
Article
The Evolutionary Game of Stakeholders’ Coordination Mechanism of New Energy Power Construction PPP Project: A China Case
by Lei Gao and Zhen-Yu Zhao
Sustainability 2020, 12(3), 1045; https://doi.org/10.3390/su12031045 - 2 Feb 2020
Cited by 31 | Viewed by 4205
Abstract
The government, investors, and the public have formed a dynamic multi-game relationship on the Public-Private-Partnership (PPP) project, but few studies include them in a system to study their win–win solutions. Firstly, we constructed a tripartite game model of the government, investors, and the [...] Read more.
The government, investors, and the public have formed a dynamic multi-game relationship on the Public-Private-Partnership (PPP) project, but few studies include them in a system to study their win–win solutions. Firstly, we constructed a tripartite game model of the government, investors, and the public based on evolutionary game theory. Secondly, the evolutionary process of tripartite strategy behaviors was studied with the system dynamics (SD) model. Finally, the impact of changes in key factors on behavior strategies was studied through sensitivity analysis. The results show the following: (1) In the outsourcing of new energy and power construction PPP projects, the three parties will eventually reach the equilibrium state of {government supervision, public participation, investors effort}, the three parties achieve a win–win situation and the project benefits are the highest at this time, and the public participation will play an important role in promoting the smooth outsourcing of PPP projects. (2) The strategic choices of the government, investors, and the public are sensitive to changes in the corresponding exogenous variables. (3) The security factor plays a crucial role in the choice of public strategy. The public’s choice is not only affected by its own income and cost, but also by the amount of compensation promised by the government and the estimated damage caused by the investor. Full article
(This article belongs to the Special Issue Energy Market Reform and Sustainability)
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15 pages, 1021 KiB  
Article
Analysis and Design of Interruptible Gas Contract in China under Energy Market Reform
by Jian Chai and Liqiao Wang
Sustainability 2020, 12(2), 506; https://doi.org/10.3390/su12020506 - 9 Jan 2020
Cited by 2 | Viewed by 2701
Abstract
Under the background of economic development, energy security and environmental demands, the development of clean and low-carbon energy has promoted natural gas and non-fossil energy to become the main direction of world energy development. China’s natural gas consumer market has wide seasonal peaks [...] Read more.
Under the background of economic development, energy security and environmental demands, the development of clean and low-carbon energy has promoted natural gas and non-fossil energy to become the main direction of world energy development. China’s natural gas consumer market has wide seasonal peaks and valleys. Because China’s natural gas peak shaving practices have some problems, we concluded that interruptible gas management has become a viable short-term emergency peak shaving method for natural gas systems in the transition period. In this paper, we take Shaanxi Province as an example. From the perspective of option pricing, this paper explains the method of using interruptible gas management to deal with the short-term supply and demand imbalance of natural gas. Therefore, we propose an interruptible gas contract trading mode, discuss the content of the interruptible gas contract and the relevant market organization form, and try to use the Black–Scholes model to calculate the option price of the interruptible gas contract. Finally, based on the price of interruptible gas and the option price of the interruptible gas contract to meet the maximum capacity shortage constraint, a provincial natural gas pipeline network company’s optimal purchase model for the interruptible gas was established, and the model was solved using the dynamic queuing method. The results show that the interruptible gas contract can not only reduce the market risk of the provincial natural gas pipeline network company and maintain the stable operation of the gas pipeline, but also reduce the cost of the interruptible users and make up for gas shortage losses. Full article
(This article belongs to the Special Issue Energy Market Reform and Sustainability)
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