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Research on Electricity Price Subsidy Policy of Biomass Energy in Shandong Province of China by CGE Model

In recent years, due to the reform of the energy structure, the energy consumption per 10,000 yuan of Gross Domestic Product (GDP) in Shandong Province in China has been decreasing year by year. Increasing the proportion of renewable energy in energy is a demand for development in the new era and a guarantee for sustainable development. Biomass energy is one of the most extensive renewable energy sources in the world. All energy production stages of this kind of energy can be intervened manually, and can even assist other energy peaking. In contrast, wind energy and solar energy do not have this advantage and power generation must cooperate with peak shaving. Therefore, the main research object of this study is biomass energy in Shandong Province.In this paper, researchers first built a Computable General Equilibrium (CGE) model of renewable energy policy in Shandong Province according to the current development. Then, by simulating the increase of biomass price electricity price subsidies by 5%, 10%, 15%, 20%, 25%, 30% compared with the base year, researchers analyzed the effects of electricity price subsidies on economic development, energy consumption, and carbon emission reduction. Finally, suggestions were proposed which can provide a reference for the promotion and development of renewable energy in Shandong Province.