Rocky Mountain Institute (RMI) China

About us

Electricity market mechanism design simulation optimization project
As electrification continues to increase, increasing the share of non-fossil energy in the power sector and system efficiency is critical for China to achieve its 2030 carbon emissions targets. The Rocky Mountain Institute worked with local partners to simulate and quantify the economic impact of introducing a power market in China on various stakeholders in the system, and to study how to increase the integration of renewable energy into the grid and improve the efficiency of coal-fired power generation through market design. We aim to reduce the total cost of system operation by simulating the power market, analyzing the changes in the interests of all participants in the system, optimizing the dispatch design, and helping the smooth progress of China's power reform.

Partner

The Rocky Mountain Institute cooperated with the New Energy Research Institute of China Electric Power Research Institute to jointly conduct dispatch model analysis. Based on partner modeling technology and data resources, Rocky Mountain Institute leverages best practices in international electricity market reform to provide market design, economic analysis, and cost-benefit analysis.

In addition, based on this dispatch model analysis and extensive experience in global electricity market reform, Rocky Mountain Institute acts as a consultant to work with regulators at the national and provincial levels to ensure that electricity market design meets the unique needs of China's electricity system.
 
Project Progress

Using this model analysis, the Rocky Mountain Institute is evaluating the impact of different market scenarios on the earnings of different power generators, and proposes corresponding compensation schemes to help decision makers effectively balance the economic benefits of power generators, system stability, and reduce user consumption. electricity prices, reducing carbon emissions, ensuring economic growth and employment, among other factors. This will provide power system reform regulators, especially provincial-level regulators, with the tools needed for power market design, laying a solid foundation for China to accelerate renewable energy reform.

In addition to providing direct strategic advice, our team also engages closely with wider stakeholders in the power sector to improve their understanding of China's electricity reform and to drive these key stakeholders to contribute to China's energy transition.