ABSTRACT

Despite government support for developing the clean energy industry, many challenges still prevent the sources from being adopted on a large scale. Chief among these diculties are a geographical mismatch between resource supply centers and energy demand centers, a lack of adequate infrastructure to transport the generated power, unintended eects of policy, misaligned incentives, and large costs despite government support. Furthermore, coal generation facilities are characterized by long ramp-up times and therefore provide little exibility to grid operators in balancing the variability of renewable sources. is will be an especially large problem for China in its future integration of renewables. Increasing the

proportion of natural gas and hydropower, two sources with short startup times, can help balance out variability as more renewables are added to the mix.