Power Crisis and the Corresponding Strategies Available online at www.sciencedirect.com Energy Procedia 5 (2011) 1153–1157 1876–6102 © 2011 Published by Elsevier Ltd. doi:10.1016/j.egypro.2011.03.202 IACEED2010 Power Crisis and the Corresponding Strategies Li Yanbin, Wang Qingzhuang , Chen Xiaojie North China Electric Power University, Beijing, 102206 Abstract Power crisis today contains not only the p henomenal of p ower storage, but also the p roblem of env ironment p ollution caused by electric p ower industry . China has exp erienced fast develop ment in the p ast 30 y ears and cor resp ondingly , p eop le’s livin g level is high er than the p ast . As a result, with the fast develop ment of economy , the p eop le’s demand on energy and p ower is more and larger than the p ast . In p ractice, although the burden of p ower supp ly has released in certain degr ee via buildin g more p ower stations, p ower crisis is still in existence because of the flaw in electricity industry structure and technique asp ects. In the p ap er, we analy ze national stage of China in electricity industry asp ect, and then we p rovide two typ ical cases about Power Crisis and cop ing strategies. Finally , we p resent relevant p olicies and strategies to tackle with the corresp onding p roblem of China p ower crisis. Keywords: power crisis; power installed capacity; renewable energy 1. Introduction In 21st century, all countries are facing the challenge of energy. Power crisis is one of the greatest crises in energy. Many experts and scholars have researched in energy policies to against electric energy crisis. Engineering education in general and power engineering education in particular is discussed by Jorge. F. Dopazo and Alberto m. Sasson (1978)[1]. H.L. Zhou [2] and J.X. Liu[3] had researched wind power industry. Grid-connected PV systems are researched by Muhammad Qua mruzza man and Kari Mujibur Rah man (2008)[4]. U.A. Korde had researched ocean wave in his paper (2002)[5]. Shi Yongqian had talked about nuclear power in h is paper [6]. The Corresponding Strategies to against electric energy crisis will be researched in the future. In th is paper, many strategies have been given. It contains Wang Qingzhuang. Tel.: 15901260751 E-m ail address: wqzhuang@yeah.net. Open access under CC BY-NC-ND license. © 2011 Published by Elsevier Ltd. Selection and peer-review under responsibility of RIUDS Open access under CC BY-NC-ND license. http://creativecommons.org/licenses/by-nc-nd/3.0/ http://creativecommons.org/licenses/by-nc-nd/3.0/ 1154 Li Yanbin et al. / Energy Procedia 5 (2011) 1153–1157 structural strategic adjustment of powe r industry, designing more reasonable grid layout, constructing new power plant, renewable energy construction, developing intelligent power grid and so on. 2. Current situation of electric power industry in china As it is shown, the proportion of thermal powe r in national installed capacity is further higher than other energy power. Wind power and nuclear powe r doesn’t reach 3% of the total installed capacity. As we a ll know, the main material to p roduce therma l power is coa l which wou ld let out large a mount of Carbon dio xide and Su lphur dio xide. According to statistics of 2006, Ch inese power industry’ Herfindahl-type of inde x is 0.1833. In china, the central government ma kes all kinds of relative plans of the development of power industry. However, power technology of china is further behind of developed countries. In 2007, each KWH e lectric power needs fuel 334g coal in china, which is higher 29g than American. Furthermore, in western china, there is enough energy, espe cially hydro energy. Northeast of China has little energy, but in these places, the power consumption is large. Tabl e 1. S tatistics of Power installed capacity in C hina, 2007-2009 [7 ] 3. Case analys is 3.1. California's failure case In 1970s, A merica power industry was still trad itional public utilit ies. In o rder to improve enterprise’ yielding and operational effic iency, states successively introduce relative regulations to encourage independent power plants to construct new power plants.. After 1980s, A merican energy e xperience fast development. Natural gas and coal are the main raw materia ls of power generation. Their prices are consistently down. Because public utility co mpanies and independent power plants signed long-term contract, public utility companies faced heavy losses. Reform polic ies of the federal energy regulatory commission and California government: first, the federa l energy regulatory co mmission ’s allo wed public utility co mpanies re move contract with independent power plants and compensated precipitation cost to independent power plants. Second, commission considered that spot trading is the best way to keep effectiveness of market and banned forward transaction. California ’ power crises [8]. 3.2. Success case of Japan to coping with power crises In the past Second World War, Japan had e xperienced twice power crises . The first crisis was happened in the period of Japan economy soaring. In the period of 1955-1972, average growth rate of GDP of Japan was high to 9%. Ho wever, powe r supply couldn’t follow the step of economy development. The second power crisis was happened under the background of twice Oil c risis . Positive measures of Japanese government: for the first power crises , the government of Japan main ly resorted to policy of developing electric ity, put power industry on the core position of energy industry and adjusted structure of energy. For the second power crises the Japanese government adopted comprehensive energy policy that considers economic development and environmental protection. Therm al power hydropower wind power Nuclear power The total 2009 6.5205 2008 6.0132 2007 5.5442 1.9679 0.1613 0.0908 8.7407 1.7000 0.1200 0.0910 7.9253 1.4526 0.0403 0.0885 7.1329 Li Yanbin et al. / Energy Procedia 5 (2011) 1153–1157 1155 4. China’s corresponding s trategies and policies 4.1. Institutional reform in electricity mark et First, China’s government should promu lgate reform laws to c lear the direction of re form and the status of the power industry and set up technical indicators to track and predict the feasibility of laws. Second, Because of the co mple xity and specialty of the powe r industry’ reform, a mong developed countries, the reform must be improved by governments, and be supported by technology. SERC should increasingly improve and consummate its regulatory functions. Third, the reform should contain decomposition of business and management of centralization. Brea king the monopoly and introducing competition are the core of re form o f power industry. So the authority should clearly define monopoly and competition, make t he part of co mpetition follow the laws of value, demand and supply, make the part of monopoly regulated by SERC. Fourth, the reform should be paid more attention to coordinate prices of coal and electricity, carry out the new mechanism of bidding, and strength Market-oriented consumer guide. Fifth, The government should make up National Powe r Technology Innovation System and put power technological innovation as the important force for power industrial upgrading and the develop ment of new industries. 4.2. Exploit renewable energy-power As we a ll know that fossil energy source is the ma in reason of e mission of Ca rbon dio xide. Exp loitation of new energy is an efficient strategy [9]. Exploit Hydropower Hydroelectric power is one category of the power industry. Ch ina has abundant water resources . However, the utilization rate of water resource is only about 35%, the degree of explo itation is far lower in Ch ina than developed countries . The generation of Hydropower is only less than conventional energy sources of coal. With the pressure of reducing e missions of carbon dio xide is increasing, the ro le of Hydropower in the aspect of reducing carbon dioxide emissions is becoming more important. Therefore, the government of Ch ina should ma ke re lated polic ies to develop Hydropower, to strengthen the protection of ecological environment and improve our existing system. Fi gu re 1. U.S. El ectric Power In dustry Fi gu re 2. C omparison of Greenhouse Gas Ne t S ummer C apacity, 2008 [ 2] Emi ssion i n Whole En e rgy Chain [10] Exploit wind power W ind power [6] as one of clean and renewable energy, countries of the world is increasingly pay attention to develop it. The total storage of wind power is about 2.74×109MW in the pl anet. In 2009, the 1. C oal; 2.fossil oil; 3.natural gas;4. Hydropower; 5. Nuclear power; 6wind power; 7.solar thermal power; 8. Biomass power 1 2 3 4 5 6 7 8 Carbon dioxide emissions g/(kwh) Max Min 1156 Li Yanbin et al. / Energy Procedia 5 (2011) 1153–1157 generation of wind power 157,900 MW. Therefore , the government should build a co mbining technical innovation system which involves business -oriented, industry, academia, and research . Exploit solar thermal power Abundant solar radiation is an important source of energy. Solar energy is ine xhaustible, clean, cheap, and free to use human energy. In recent years, generation of solar therma l powe r has achieved a series of breakthroughs in technology. Cost has significantly reduced. More than 20 b locks large-scale solar therma l powe r plant in the world is running. Many scientists predict that by the end of the century and the beginning of the ne xt century, solar power and conventional electric ity price may be reduced to the same level. Exploit nuclear power Nuclear powe r plant can produce large a mounts of electricity and only e xpend little nuclea r fue l. The cost per kWh is lo wer t 20% than thermal power p lant. Nuclea r power station still can reduce traffic volume of fuel. Fo r e xa mple , a coal-fired powe r plant of 100 million kilowatts consumes 3 -4 million tons of coal in every year. While the sa me nuclear powe r p lant only e xpend 30-40 tons uranium fuel each year. Another advantage of nuclear power is clean, no pollution, is almost zero emissions. Develop rural renewable energy power In China, rura l a reas have abundant hydropower, solar, wind, b io mass, etc. In this art icle, we take Biomass power generation as an example to prove the potential of rural renewable energy power. The so-called bio mass power generation is that using cotton rod, straw stalks and other agricultural and forestry wastes as raw materia ls to generate electricity. The whole process of power generation link together to form a co mprehensive utilization of b io mass power generation, building green chains of straw, which will ring the origina l agricultura l production chain which can be recycled into a c losed -loop chain, is a completely turning waste into eco -economic model. 4.3. Comprehensive management of energy demand ‘De mand side manage ment’ [11]re fers to using an effective incentive measures to guide users of electric powe r to change the way of consuming electric powe r, and imp rove the end-use efficiency, optimize resources, improve and protect the environ ment, to achieve the min imu m cost of e lectric ity services provided by the power management activities. Management strategies of electric ity power demand: First, formu late and modify relevant la ws, regulations and polic ies to ensure administrative measures to be put into practice. In a global perspective, countries with better De mand Side Management, there are stringent laws and regulations. For e xa mp le, the government of USA has introduced the “National Energy policy-act”, “Public Se rvice Management Po licy -act” and other laws and regulations, and developed a large number of mandatory energy efficiency standard to power companies and electricity consumers. Second, reform and imp rove the system of e lectric price. Adopt a fle xib le price that is di ffe rent price in different time and widen gap of seasonal prices, and improve the load rate of power grid. Third, construct mu lti-incentive mechanis m. Govern ment could adopt price an d economy means to enhance motivation of power companies and electricity customers for demand side manage ment. Government could make a found for demand side management subsidies. 4.4. Cultivate high-quality power talents With the progress of technology and reform of manage ment mechanism, powe r enterprises are gradually transforming fro m the original manufacturer into integration in production, manage ment and service. When power industry is experiencing fast development, the structural contradictions of human Li Yanbin et al. / Energy Procedia 5 (2011) 1153–1157 1157 resource in power industry gradually appear. Labour Depart ment and e lectric ity power enterprises should cooperate to cultivate high-skill talents Power Engineering Education [1] is specialized to tra in high sophisticated professional of power system. With the development of power industry, more and more intelligent products will replace the original products. So the require ment to professional’ ma jor knowledge is increasingly high such as low - carbon technologies, the technologies of intelligent po wer grid and so on. It not only requires electrical engineers to grasp the power’ majo r knowledge, but also requires them proficient in mathemat ics and computer knowledge. The government should establish a special education fund and co mbine with appropriate incentives to support the training of power engineers. 5. Conclusions Th is paper is started with the national stage of China’s power industry and the international hot topic about coping electric energy crisis. Then two typical cases about corresponding with strategies against power crisis are given. Lastly, the paper is fro m the aspects of institutional reform in e lectricity ma rket , technological innovation and energy conservation , explo iting renewable energy-power, developing rural renewable energy power, co mprehensive management of energy demand and cultivating high-quality power talents to discuss how to cope with power crisis. Acknowledgement The authors are very grateful to the anonymous referees for the insightful comments and suggestions. This research is supported by the Natural Science Foundation of China under Grant No.70971039 , the Project Supported by Chinese Universities Scientific Fund No. 09M R46 and Hu manit ies and Social Sciences Fund Projects of Ministry of Education No.10YJA630088. References [1] JORGE F. DOPAZO, ALBERTO M. SASSON, P ersonal Views on Power Engineering Educat ion from an Indust ry Vantage P oint [J]. Transctions on education, AUGUST 1978,21(3); [2] U.S. Energy Information Administ ration, Form EIA-860, “Annual Electric Generator Report; [3] J.X. Liu, “On t he St at us Quo of t he Wind P ower Generat ion and t he Incentives of It s Development and Ut ilizat ion,” Taxation Research, No.279, August , 2008. 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