Possible design with equity and responsibility in China's renewable portfolio standards

Feed-in tariff and renewable portfolio standards are two major policies for renewable power generation and China is the first country to adopt both policies at the national level. The black box for regional allocation of renewable portfolio standards, however, may lead to the instability and inefficiency of this policy. This paper introduces the principles of Management by Objective to build a clear policy framework for renewable portfolio standards in China and employs the entropy method to equally and reasonably assign regional responsibility for renewable energy development. A comparison is made between our allocation and the goal-directed policy to determine whether historical responsibility and infrastructure construction should be further considered in crafting renewable portfolio standards. The trends for regional renewable quotas are influenced by the twin-track approach of nearby utilization and external transmission. Finally, based on our analysis, the policy implications behind the new incentive are presented to urge the establishments of supporting facilities.