A TOU Pricing Mechanism to Promote Renewable Energy Consumption: The Case of the Western Inner Mongolia Grid in China

Table 4

The marginal cost of captive coal-fired power plants.

Items	Value
Marginal production cost	0.15 Yuan/kWh
Reserve capacity expenses of power system	35 kV and below: 0.031 Yuan/kWh; 110 kV: 0.027 Yuan/kWh; 220 kV: 0.02 Yuan/kWh
Government funds
Rural grid loan repayment funds	0.02 Yuan/kWh
National large-scale water projects construction funds	0.004 Yuan/kWh
Large and medium-sized reservoir resettlement later support funds	0.0031 Yuan/kWh
Renewable energy price surcharges	0.019 Yuan/kWh
City public utilities surcharges	0.007 Yuan/kWh
Structural adjustment funds	0.0054 Yuan/kWh
Carbon price	14.59 Yuan/t
CO2 emissions	0.8066 kg/kWh

Note: carbon price data comes from Hubei carbon emission trading center. The reason is that, currently, there are seven pilot areas of carbon emission trading market in China, namely, Beijing, Tianjin, Shanghai, Chongqing, Hubei, Guangdong, and Shenzhen. The industrial structure of Inner Mongolia has a big difference with Beijing, Tianjin, Shanghai, Guangdong, and Shenzhen. And the Chongqing carbon emission trading center is lack of activity.