China has built the world's largest power infrastructure. Those upgrading power grid facilities not only contribute to providing enough end-used energy for the world's factories, but also offering a basic guarantee for the clean strategy of Building a Beautiful China proposed by the Chinese government. The national grid system supported by extra-high voltage and ultra-high voltage grids as the backbone makes it possible for a non-dispatchable renewable energy source to be connected to the national grid and transmitted to terminal consumers in load centers. The aim of this paper is to test whether China's advanced power grids have played a positive role in promoting power generation of intermittent renewable energy source. A novel nonlinear estimation named panel smoothing transition regression is introduced to capture heterogeneous effects of grid-connecting renewable energy source across regions. The empirical results show that whereas power grid infrastructure generally enhances power generation of renewable energy source and consumption in energy bases and load centers, the effects change across different voltage levels of power grids. The extra-high voltage power grids show strong support for grid-connecting renewable energy source, while the effect of ultra-high voltage power grids is unexpectedly insignificant. The extra-high voltage power grids have not yet become the backbone of the national grid, which is the main reason for the inadequate grid-connected renewable energy source to the ultra-high voltage power grids, indicating the importance of upgrading the power grid infrastructure.
LinB. Power shortage, short-run response, and long-run consideration. Econ Res J2004; 4: 28–36.
3.
ZengMPengLFanQ,et al. Trans-regional electricity transmission in China: Status, issues and strategies. Renew Sustain Energy Rev2016; 66: 572–583.
4.
ZhangWQZhangXYHuangSW,et al. Evolution of a transmission network with high proportion of renewable energy in the future. Renew Energy2017; 102: 372–379.
5.
WangYYanWZhuangS, et al. Does grid-connected clean power promote regional energy efficiency? An empirical analysis based on the upgrading grid infrastructure across China. J Clean Prod2018; 186: 736–747.
6.
GrafCMarcantoniniC. Renewable energy intermittency and its impact on thermal generation. Energy Econ2016; 66: 421–430.
7.
CaoYWangXLiY,et al. A comprehensive study on low-carbon impact of distributed generations on regional power grids: a case of Jiangxi provincial power grid in China. Renew Sustain Energy Rev2016; 53: 766–778.
8.
LiYLukszoZWeijnenM. The impact of inter-regional transmission grid expansion on China’s power sector decarbonization. Appl Energy2016; 183: 853–873.
9.
HammonsTJ. Integrating renewable energy sources into European grids. Int J Electr Power2008; 30: 462–475.
10.
WangYYanWZhuangS,et al. Competition or complementarity? The hydropower and thermal power nexus in China. Renew Energy2019; 138: 531–541.
11.
KimHParkSLeeJ. Is renewable energy acceptable with power grid expansion? A quantitative study of South Korea’s renewable energy acceptance. Renew Sustain Energy Rev2021; 139: 110584.
12.
LiCShiHCaoY, et al. Comprehensive review of renewable energy curtailment and avoidance: a specific example in China. Renew Sustain Energy Rev2015; 41: 1067–1079.
13.
AbhyankarNLinJLiuX, et al. Economic and environmental benefits of market-based power-system reform in China: a case study of the southern grid system. Resour Conserv Recycl2020; 153: 104558.
14.
DavidsonMRZhangDXiongW, et al. Modelling the potential for wind energy integration on China’s coal-heavy electricity grid. Nature Energy2016; 1: 1–7.
15.
FanJLWangJXHuJW, et al. Optimization of China’s provincial renewable energy installation plan for the 13th five-year plan based on renewable portfolio standards. Appl Energy2019; 254: 113757.
16.
DagoumasASKoltsaklisNE. Review of models for integrating renewable energy in the generation expansion planning. Appl Energy2019; 242: 1573–1587.
17.
JoasFPahleMFlachslandC,et al. Which goals are driving the energiewende? Making sense of the German energy transformation. Energy Policy2016; 95: 42–51.
18.
FarrokhifarMNieYPozoD. Energy systems planning: a survey on models for integrated power and natural gas networks coordination. Appl Energy2020; 262: 114567.
19.
WangQKwanMPFanJ,et al.A study on the spatial distribution of the renewable energy industries in China and their driving factors. Renew Energy2019; 139: 161–175.
20.
LinBLiJ. Analyzing cost of grid-connection of renewable energy development in China. Renew Sustain Energy Rev2015; 50: 1373–1382.
21.
YangFZhangDSunC. China’s regional balanced development based on the investment in power grid infrastructure. Renew Sustain Energy Rev2016; 53: 1549–1557.
22.
PueyoA.What constrains renewable energy investment in sub-Saharan Africa? A comparison of Kenya and Ghana. World Dev2018; 109: 85–100.
23.
Inglesi-LotzRDoganE. The role of renewable versus non-renewable energy to the level of CO2, emissions a panel analysis of Sub-Saharan Africa’s big 10 electricity generators. Renew Energy2018; 123: 36–43.
24.
SchmidG. The development of renewable energy power in India: which policies have been effective?Energy Policy2012; 45: 317–326.
25.
ThopilMSBansalRCZhangL,et al. A review of grid connected distributed generation using renewable energy sources in South Africa. Energy Strateg Rev2018; 21: 88–97.
26.
MoriartyPHonneryD. Can renewable energy power the future?Energy Policy2016; 93: 3–7.
27.
KomiyamaRFujiiY. Assessment of post-Fukushima renewable energy policy in Japan’s nation-wide power grid. Energy Policy2017; 101: 594–611.
28.
HeldARagwitzMSensfußF, et al. How can the renewables targets be reached cost-effectively? Policy options for the development of renewables and the transmission grid. Energy Policy2018; 116: 112–126.
29.
WangJYaoDHeJ. A study on the characteristics, predictions and policies of China’s eight main power grids. Energy Convers Manage2014; 86: 818–830.
30.
YangXJHuHTanT, et al. China’s renewable energy goals by 2050. Environ Dev2016; 20: 83–90.
31.
PapaefthymiouGDragoonK. 2016.Towards 100% renewable energy systems: uncapping power system flexibility. Energy Policy2016; 92: 69–82.
32.
SchaberKSteinkeFHamacherT. Transmission grid extensions for the integration of variable renewable energies in Europe: who benefits where?Energy Policy2012; 43: 123–135.
33.
ErenA. Transformation of the water-energy nexus in Turkey: Re-imagining hydroelectricity infrastructure. Energy Res Soc Sci2018; 41: 22–31.
34.
MccauleyD. Reframing decommissioning as energy infrastructural investment: a comparative analysis of motivational frames in Scotland and Germany. Energy Res Soc Sci2018; 41: 32–38.
35.
BridgeGÖzkaynakBTurhanE. Energy infrastructure and the fate of the nation: introduction to special issue. Energy Res Soc Sci2018; 41: 1–11.
36.
JoosMStaffellI. Short-term integration costs of variable renewable energy: wind curtailment and balancing in Britain and Germany. Renew Sustain Energy Rev2018; 86: 45–65.
37.
AhmedTMekhilefSShahR,et al. ASEAN Power grid: a secure transmission infrastructure for clean and sustainable energy for South-East Asia. Renew Sustain Energy Rev2017; 67: 1420–1435.
38.
PoudinehRSenAFattouhB.2018.Advancing renewable energy in resource-rich economies of the Mena. Renew Energy2018; 123: 135–149.
39.
ZhaoZYChenYLChangRD. How to stimulate renewable energy power generation effectively? China’s incentive approaches and lessons. Renew Energy2016; 92: 147–156.
40.
CiforADenholmPElaE,et al. The policy and institutional challenges of grid integration of renewable energy in the western United States. Util Policy2015; 33: 34–41.
41.
YiBWXuJHFanY. Inter-regional power grid planning up to 2030 in China considering renewable energy development and regional pollutant control: a multi-region bottom-up optimization model. Appl Energy2016; 184: 641–658.
42.
JorgeRSHertwichEG. Grid infrastructure for renewable power in Europe: the environmental cost. Energy2014; 69: 760–768.
43.
GonzálezATeräsvirtaTVandijkD. Panel smooth transition regression models. Working Paper Series in Economics and Finance, Aarhus University, Denmark, 2005.
44.
ArimuraTHLiSNewellRG,et al. Cost-effectiveness of electricity energy efficiency programs. Discuss Pap2011; 33: 63–99.
45.
SongZNiuDDaiS,et al. Incorporating the influence of China’s industrial backward capacity elimination policies in electricity demand forecasting. Util Policy2017; 47: 1–11.
46.
CampbellA. Price and income elasticities of electricity demand: evidence from Jamaica. Energy Econ2018; 69: 19–32.
47.
DuarteRPinillaVSerranoA. Is there an environmental Kuznets curve for water use? A panel smooth transition regression approach. Econ Model2013; 31: 518–527.
48.
UbilavaDVilloriaNBTackJB. Smooth transitions across latitudes and longitudes: an application of a nonlinear panel regression to the climate—economics nexus. Econ Lett2019; 182: 114–117.
49.
CheikhNBZaiedYBChevallierJ. On the nonlinear relationship between energy use and CO2 emissions within an EKC framework: evidence from panel smooth transition regression in the MENA region. Res Int Bus Financ2021; 55: 101331.
50.
TongYZhouHJiangL. Exploring the transition effects of foreign direct investment on the eco-efficiency of Chinese cities: based on multi-source data and panel smooth transition regression models. Ecol Indic2021; 121: 107073.
51.
WangCWangYTongX,et al. Mapping potentials and bridging regional gaps of renewable resources in China. Renew Sustain Energy Rev2020; 134: 110337.
52.
ZengMLiHMaM, et al. Review on transaction status and relevant policies of southern route in China’s west to east power transmission. Renew Energy2013; 60: 454–461.
53.
ZhuYKeJWangJ,et al.Water transfer and losses embodied in the west–east electricity transmission project in China. Appl Energy2020; 275: 1–11.
54.
ZhouBLinHYangS. Multi-agent benefit equilibrium model for renewable energy in multi-energy complementary system. Smart Power2020; 48: 74–79.
55.
Balsalobre-LorenteDShahbazMRoubaudD. How economic growth, renewable electricity and natural resources contribute to CO2 emissions. Energy Policy2018; 113: 356–367.
