Essay Example on Renewable Energy: Growing Demand & System Flexibility

Introduction

The demand for energy has resulted in the high growth of intermittent renewable energy technologies in many countries around the globe. The intermittent renewable energies like wind and solar energy have led to creating a great danger to the energy systems in countries where renewable energy is used in high quantity. There is a gradual increase in demand for flexibility of power systems to the timely reaction of residual forces and integrative sources of renewable energy (Pollitt, Yang, & Chen, 2017). There is conventional methods utilized in improving the flexibility of renewable energies. These methods range from creating flexibility in domestic energies, expanding energy grid investments, designing the interconnection transition with local grids making it more accessible, developing wind and solar energy forecasting, demand-side management establishment in the energy sector, and making a priority out of balancing between renewable energies demand and electricity. The paper analyzes energy transition markets and how they affect the productivity of energy by utilizing relevant instruments that are based on the market expansion and flexibility.

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Energy markets in China

China is the leading country in the world in the growth and installation of renewable energies. The fast growth has created a challenge in the integration of power energy transitions in the country. This has resulted in the curtailment of renewable energies in the country. The curtailment of wind energy stands at 17%, while that of solar energy stands at 10.3%, which is a contrast of the expected (Rose, Stoner, & Perez-Arriaga, 2016). In other countries where renewable energy has made considerable renovation, the curtailment is at 5%. The experiences recorded in China have been thought of as energy transitions and market disparities. There is a massive concentration of renewable energies from the loading centers in the eastern part of the country. There is also a lack of flexible power system plants in the country, a lack of enough transmission capacity to the general population in need of power, and poor construction of the transmission facilities in the country. There is imposed and uncoordinated energy trade barriers between provinces in the country that are negatively affecting the system and the transmission of power across different regions in the country by various organizations. Lack of a cross-provincial pricing planning mechanism in the country is also another factor that is affecting energy markets and transition in the country (Song et al., 2017).

The factors mentioned above have translated into defining the root course of the energy curtailment in the country as the highly regulated power transition across different regions and markets. In other countries like the United States and Denmark, renewable energy transmission has been accorded free market across regions by private organizations. Private energy companies have been granted the freedom to explore different markets at customized prices and rates that does not oppress the consumers (Wang et al., 2019).

Arguments have been made that China's ability to regulate power has gone beyond regulation, creating a barrier in transmitting energy in different regions (Li, Zhang, & Andrews-Speed, 2019). Such laws also make it impossible for other power companies to get in the renewable energy markets in the country with the fear of curtailment and lack of market flexibility (Meckling, Sterner, & Wagner, 2017).

The recommendations have been made for regulations that would give room for renewable energy flexibility and market freedom. With market freedom, power companies can install power in any part of the country without the worry of the market tariffs and restrictions (Pahle et al., 2018).

Conclusion

Renewable energy is the fastest-growing power technology in the world. The demand for clean energy asks the power companies to consider wind and solar energy that does not harm the environment. Curtailment of renewable energy in China has created a market crisis despite the high demand for energy. The problem can be solved by enacting regulations that would enhance renewable energy flexibility by enabling power transmission between provinces and hence allow a free market.

References

Li, S., Zhang, S., & Andrews-Speed, P. (2019). Using diverse market-based approaches to integrate renewable energy: Experiences from China. Energy policy, 125, 330-337.

Meckling, J., Sterner, T., & Wagner, G. (2017). Policy sequencing toward decarbonization. Nature Energy, 2(12), 918-922.

Pahle, M., Burtraw, D., Flachsland, C., Kelsey, N., Biber, E., Meckling, J., & Zysman, J. (2018). Sequencing to ratchet up climate policy stringency. Nature Climate Change, 8(10), 861-867.

Pollitt, M. G., Yang, C. H., & Chen, H. (2017). Reforming the Chinese Electricity Supply Sector: Lessons from International Experience. Cambridge Working Paper Economics. University of Cambridge.

Rose, A., Stoner, R., & Perez-Arriaga, I. (2016). Integrating market and bilateral power trading in the South African Power Pool (No. 2016/132). WIDER Working Paper.

Song, Y., Liu, T., Li, Y., & Liang, D. (2017). Region division of China's carbon market based on the provincial/municipal carbon intensity. Journal of Cleaner Production, 164, 1312-1323.

Wang, S., Shen, W., Tang, W., Wang, Y., Duffield, C. F., & Hui, F. K. P. (2019). Understanding the social network of stakeholders in hydropower project development: An owners' view. Renewable Energy, 132, 326-334.

Weng, Q., & Xu, H. (2018). A review of China's carbon trading market. Renewable and Sustainable Energy Reviews, 91, 613-619.