『Abstract
Government policy continues to play a crucial role in the development
of wind power industry in China. The 2005 “Renewable Energy Law”
and related policies have driven the rapid increase in wind power
installed capacity in China over the past half-decade, with capacity
doubling annually since 2005. However, a large number of wind
farms generate electricity well below their installed capacity,
resulting in considerable wastage of resources. Non-grid-connected
wind power theory proposes that large-scale wind power output
does not necessarily have to fed into the grid, but can be used
directly in industrial production. Thus, the use of the theory
can promote the sustainable development of the wind power industry
by obviating the need for power grid. In this paper we analyze
the influence of government policy on wind power industry from
the perspective of institutional change, by employing the basic
theories of new i-nstitutional economics. A development model
for non-grid-connected wind power is proposed in order to implement
institutional change in accordance with the specific characteristics
of wind power industry in China. This model requires the government
to play an active role in institutional development by increasing
economic efficiency in order to promote the sustainable development
of wind power.
Keywords: Non-grid-connected wind power; Energy policy; New institutional
economics』
1. Introduction
2. Characteristics of institutional change in non-grid-connected
wind power
2.1. Mandatory institutional change
2.2. Induced institutional change
3. Analysis of impending institutional change for non-grid-connected
wind power
3.1. Transaction cost analysis under mandatory institutional
change
3.2. Transaction cost analysis under induced institutional change
4. Path of institutional change for non-grid-connected wind power
4.1. Transformation from supply-dominated type to demand-induced
type
4.2. Role of promotion in mandatory institutional change
4.3. Hybrid development mode of institutional change
5. Policy implications
5.1. Preferential policies of the government
5.2. Electricity market development
5.3. Market building in the wind power industry
5.4. Smart grid construction
6. Conclusions
References