Energy efficiency in China: optimization and comparison between hydropower and thermal power

Abstract

Background: The energy generation efficiencies of thermal power and hydropower, which are the two main forces of electric power in China, are important factors affecting the energy conservation, emission reduction, and green development of the country’s whole power industry. Methods: Considering regional differences and multiple efficient decision-making units (DMUs), this research uses the meta-Frontier super-efficiency slack-based measure (meta-SE-SBM) undesirable model to comprehensively evaluate the efficiencies of hydropower and thermal power generation in China. The CO2 emissions of thermal power generation are taken as the undesirable output. Results: The ranking of the average meta-efficiency of thermal power generation in China is Eastern China > Central China > Western China, and all regions show an upward trend. However, the ranking of the average meta-efficiency of hydropower generation is Western China > Central China > Eastern China, and all these regions present a downward trend. In 2017, the technology gap ratio (TGR) values for the thermal power generation efficiency of the eastern and western regions showed a rising trend, while that for the central region showed a declining trend. The TGR values of the hydropower generation efficiency of the western region continued to increase, while those of the central and eastern regions decreased. The development trends of the TGR values of the thermal power or hydropower generation efficiencies of the three regions were not consistent with each other, indicating that technological convergence has not been achieved. In the three regions, the technology gaps in hydropower have slightly expanded, but the technology gaps in thermal power have gradually narrowed. The undesirable output CO2 of the thermal power energy efficiency of the three regions is in a surplus, and the generation of hydropower in the eastern and central regions is insufficient. Conclusions: The government and power industry managers should fully consider regional heterogeneity in the efficiency of hydropower and thermal power to reduce the technology gap in China. The thermal power industry is relatively mature, but its CO2 emissions should be controlled. The hydropower industry needs further policy support to promote an efficiency improvement in it under the condition of resource endowments.