Inconsistencies between China's wind power development and grid planning: An institutional perspective

Prior to 2002, the original State Power Corporation of China, integrating power plants and grids, focused more on power generation planning, causing the construction of grids lagging behind the development of power generation. After the split of plants and grids, power plants and grid companies become independent subjects of interest. So, multiple subjects of interests such as local governments, grids, electric power companies of provinces (autonomous regions) and wind power plants participate in the competition for their own benefits. In addition to the absence of governmental management in the wind power development and grid planning, the lack of a coordination mechanism between the Central Government and local governments and between the competent government departments results in the inconsistency between the wind power development and the grid planning and construction.

► We analyze the inconsistencies between the stakeholders in China’s wind power industry from the institutional perspective. ▶ New problems in China’s power generation development and grid planning come up after electric power system reform. ▶ We highlight the institutional causes for the inconsistence between wind power development and grid planning.