An analysis on the effectiveness and determinants of the wind power Feed-in-Tariff policy at China’s national-level and regional-grid-level

Abstract

Wind Feed-in-Tariff (FIT) policy has been implemented in China since 2005. This paper aims to examine the effectiveness of the current wind FIT policy at a national-level, and to investigate the determinants of wind power development at a regional-grid-level. The determinants include substitutable fuel (coal consumption), economic development (GDP per capita), residential electricity price and efficiency of an economy (electricity intensity). It is found that the determinants on wind power development show great differences among six regional grids. It is also found that it is urgent to reform the wind FIT policy, especially segmented wind FIT policies rather than a national consolidated one should be considered for different regional grids.