IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v132y2020ics1364032120302938.html
   My bibliography  Save this article

The expansion of China's solar energy: Challenges and policy options

Author

Listed:
  • Li, Jianglong
  • Huang, Jiashun

Abstract

Given that China is committed to peak its carbon dioxide emissions in or before 2030 under the Paris Agreement, promoting renewable energy to substitute coal is one critical solution to facilitate China to meet this commitment. Among various types of renewable energy, solar energy is an attractive choice that will significantly influence the future of energy supply and energy usage. We first provide an overview of the most recent development of solar energy in China, in which the changing pattern from stationary to distributive forms is highlighted. We show that the diversified prices and subsidies across regions may play an important role in the changing pattern. Furthermore, we find major challenges that might impede the future expansion of solar energy. To address these challenges, governments need to propose policies to develop technologies and meditate the benefits of stakeholders, especially grid companies and electricity end-users. Market-based policies are also expected to accelerate the learning-by-doing process through R&D investment, which will help reduce and ultimately eliminate solar subsidies.

Suggested Citation

  • Li, Jianglong & Huang, Jiashun, 2020. "The expansion of China's solar energy: Challenges and policy options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    • Handle: RePEc:eee:rensus:v:132:y:2020:i:c:s1364032120302938
    DOI: 10.1016/j.rser.2020.110002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032120302938
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2020.110002?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. repec:hal:spmain:info:hdl:2441/jff6fcqc8e6bbhnlvps4rou6 is not listed on IDEAS
    2. Harder, Elizabeth & Gibson, Jacqueline MacDonald, 2011. "The costs and benefits of large-scale solar photovoltaic power production in Abu Dhabi, United Arab Emirates," Renewable Energy, Elsevier, vol. 36(2), pages 789-796.
    3. Verdolini, Elena & Vona, Francesco & Popp, David, 2018. "Bridging the gap: Do fast-reacting fossil technologies facilitate renewable energy diffusion?," Energy Policy, Elsevier, vol. 116(C), pages 242-256.
    4. He, Gang & Kammen, Daniel M., 2016. "Where, when and how much solar is available? A provincial-scale solar resource assessment for China," Renewable Energy, Elsevier, vol. 85(C), pages 74-82.
    5. Ryan, Lisa & Dillon, Joseph & Monaca, Sarah La & Byrne, Julie & O'Malley, Mark, 2016. "Assessing the system and investor value of utility-scale solar PV," Renewable and Sustainable Energy Reviews, Elsevier, vol. 64(C), pages 506-517.
    6. Snyder, Brian & Kaiser, Mark J., 2009. "Ecological and economic cost-benefit analysis of offshore wind energy," Renewable Energy, Elsevier, vol. 34(6), pages 1567-1578.
    7. Zheng, Heran & Shan, Yuli & Mi, Zhifu & Meng, Jing & Ou, Jiamin & Schroeder, Heike & Guan, Dabo, 2018. "How modifications of China's energy data affect carbon mitigation targets," Energy Policy, Elsevier, vol. 116(C), pages 337-343.
    8. Peng, Wei & Yang, Junnan & Lu, Xi & Mauzerall, Denise L., 2018. "Potential co-benefits of electrification for air quality, health, and CO2 mitigation in 2030 China," Applied Energy, Elsevier, vol. 218(C), pages 511-519.
    9. Bazilian, Morgan & Onyeji, Ijeoma & Liebreich, Michael & MacGill, Ian & Chase, Jennifer & Shah, Jigar & Gielen, Dolf & Arent, Doug & Landfear, Doug & Zhengrong, Shi, 2013. "Re-considering the economics of photovoltaic power," Renewable Energy, Elsevier, vol. 53(C), pages 329-338.
    10. Nugent, Daniel & Sovacool, Benjamin K., 2014. "Assessing the lifecycle greenhouse gas emissions from solar PV and wind energy: A critical meta-survey," Energy Policy, Elsevier, vol. 65(C), pages 229-244.
    11. Sun, Honghang & Zhi, Qiang & Wang, Yibo & Yao, Qiang & Su, Jun, 2014. "China’s solar photovoltaic industry development: The status quo, problems and approaches," Applied Energy, Elsevier, vol. 118(C), pages 221-230.
    12. Xu, Mei & Xie, Pu & Xie, Bai-Chen, 2020. "Study of China's optimal solar photovoltaic power development path to 2050," Resources Policy, Elsevier, vol. 65(C).
    13. Abrell, Jan & Rausch, Sebastian, 2016. "Cross-country electricity trade, renewable energy and European transmission infrastructure policy," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 87-113.
    14. Yu, Hongwei & Duan, Jinhui & Du, Wei & Xue, Song & Sun, Jinghui, 2017. "China's energy storage industry: Develop status, existing problems and countermeasures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 767-784.
    15. Ma, Jinlong, 2011. "On-grid electricity tariffs in China: Development, reform and prospects," Energy Policy, Elsevier, vol. 39(5), pages 2633-2645, May.
    16. Zhao, Zhen-Yu & Chen, Yu-Long & Thomson, John Douglas, 2017. "Levelized cost of energy modeling for concentrated solar power projects: A China study," Energy, Elsevier, vol. 120(C), pages 117-127.
    17. Menegaki, Angeliki, 2008. "Valuation for renewable energy: A comparative review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(9), pages 2422-2437, December.
    18. Burandt, Thorsten & Xiong, Bobby & Löffler, Konstantin & Oei, Pao-Yu, 2019. "Decarbonizing China’s energy system – Modeling the transformation of the electricity, transportation, heat, and industrial sectors," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 255, pages 1-17.
    19. Zhi, Qiang & Sun, Honghang & Li, Yanxi & Xu, Yurui & Su, Jun, 2014. "China’s solar photovoltaic policy: An analysis based on policy instruments," Applied Energy, Elsevier, vol. 129(C), pages 308-319.
    20. Crago, Christine Lasco & Chernyakhovskiy, Ilya, 2017. "Are policy incentives for solar power effective? Evidence from residential installations in the Northeast," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 132-151.
    21. Jiashun Huang & Weiping Li & Xijie Huang & Lijia Guo, 2017. "Analysis of the Relative Sustainability of Land Devoted to Bioenergy: Comparing Land-Use Alternatives in China," Sustainability, MDPI, vol. 9(5), pages 1-13, May.
    22. Darghouth, Naïm R. & Wiser, Ryan H. & Barbose, Galen, 2016. "Customer economics of residential photovoltaic systems: Sensitivities to changes in wholesale market design and rate structures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 1459-1469.
    23. Zou, Hongyang & Du, Huibin & Ren, Jingzheng & Sovacool, Benjamin K. & Zhang, Yongjie & Mao, Guozhu, 2017. "Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 197-206.
    24. Sarasa-Maestro, Carlos J. & Dufo-López, Rodolfo & Bernal-Agustín, José L., 2013. "Photovoltaic remuneration policies in the European Union," Energy Policy, Elsevier, vol. 55(C), pages 317-328.
    25. Venkatachalam ANBUMOZHI & Alex BOWEN & Puthusserikunnel Devasia JOSE, 2015. "Market-Based Mechanisms to Promote Renewable Energy in Asia," Working Papers DP-2015-30, Economic Research Institute for ASEAN and East Asia (ERIA).
    26. Arthur van Benthem & Kenneth Gillingham & James Sweeney, 2008. "Learning-by-Doing and the Optimal Solar Policy in California," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 131-152.
    27. Edenhofer, Ottmar & Hirth, Lion & Knopf, Brigitte & Pahle, Michael & Schlömer, Steffen & Schmid, Eva & Ueckerdt, Falko, 2013. "On the economics of renewable energy sources," Energy Economics, Elsevier, vol. 40(S1), pages 12-23.
    28. Nian, Victor & Liu, Yang & Zhong, Sheng, 2019. "Life cycle cost-benefit analysis of offshore wind energy under the climatic conditions in Southeast Asia – Setting the bottom-line for deployment," Applied Energy, Elsevier, vol. 233, pages 1003-1014.
    29. Johansson, Per-Olov & Kriström, Bengt, 2019. "Welfare evaluation of subsidies to renewable energy in general equilibrium: Theory and application," Energy Economics, Elsevier, vol. 83(C), pages 144-155.
    30. Xin-gang, Zhao & Yi-min, Xie, 2019. "The economic performance of industrial and commercial rooftop photovoltaic in China," Energy, Elsevier, vol. 187(C).
    31. Darghouth, Naïm R. & Barbose, Galen & Wiser, Ryan, 2011. "The impact of rate design and net metering on the bill savings from distributed PV for residential customers in California," Energy Policy, Elsevier, vol. 39(9), pages 5243-5253, September.
    32. Huang, Jiashun & Li, Weiping & Guo, Lijia & Hu, Xi & Hall, Jim W., 2020. "Renewable energy and household economy in rural China," Renewable Energy, Elsevier, vol. 155(C), pages 669-676.
    33. Wang, Fengjuan & Xie, Yachen & Xu, Jiuping, 2019. "Reliable-economical equilibrium based short-term scheduling towards hybrid hydro-photovoltaic generation systems: Case study from China," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    34. Lin, Boqiang & Li, Jianglong, 2015. "Analyzing cost of grid-connection of renewable energy development in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1373-1382.
    35. Burandt, Thorsten & Xiong, Bobby & Löffler, Konstantin & Oei, Pao-Yu, 2019. "Decarbonizing China’s energy system – Modeling the transformation of the electricity, transportation, heat, and industrial sectors," Applied Energy, Elsevier, vol. 255(C).
    36. Ye, Liang-Cheng & Rodrigues, João F.D. & Lin, Hai Xiang, 2017. "Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016," Applied Energy, Elsevier, vol. 203(C), pages 496-505.
    37. Gregory F. Nemet & Erin Baker, 2009. "Demand Subsidies Versus R&D: Comparing the Uncertain Impacts of Policy on a Pre-commercial Low-carbon Energy Technology," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 49-80.
    38. Rao, K. Usha & Kishore, V.V.N., 2010. "A review of technology diffusion models with special reference to renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 1070-1078, April.
    39. You, Wei & Geng, Yong & Dong, Huijuan & Wilson, Jeffrey & Pan, Hengyu & Wu, Rui & Sun, Lu & Zhang, Xi & Liu, Zhiqing, 2018. "Technical and economic assessment of RES penetration by modelling China's existing energy system," Energy, Elsevier, vol. 165(PB), pages 900-910.
    40. Qin, Yue & Tong, Fan & Yang, Guang & Mauzerall, Denise L., 2018. "Challenges of using natural gas as a carbon mitigation option in China," Energy Policy, Elsevier, vol. 117(C), pages 457-462.
    41. Larry S. Karp & Christian P. Traeger, 2018. "Taxes Versus Quantities Reassessed," CESifo Working Paper Series 7331, CESifo.
    42. La Monaca, Sarah & Ryan, Lisa, 2017. "Solar PV where the sun doesn’t shine: Estimating the economic impacts of support schemes for residential PV with detailed net demand profiling," Energy Policy, Elsevier, vol. 108(C), pages 731-741.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Fa & Wang, Xunming & Sun, Fubao & Wang, Hong, 2022. "Correct and remap solar radiation and photovoltaic power in China based on machine learning models," Applied Energy, Elsevier, vol. 312(C).
    2. Wang, Qiang & Zhang, Xiaoming & Zhang, Haotian & Ma, Yinghan & Zhao, Shiyu, 2022. "Optimization of solar-assisted GWHP system based on the Trnsys model in cold regions," Renewable Energy, Elsevier, vol. 196(C), pages 1406-1417.
    3. Mao, Mingxuan & Chen, Siyu & Yan, Jinyue, 2023. "Modelling pavement photovoltaic arrays with cellular automata," Applied Energy, Elsevier, vol. 330(PB).
    4. Wei, Xiaolin & Shang, Yunfeng, 2023. "Modernization of governance at Chinese universities: Role of fossil fuels and green energy resource," Resources Policy, Elsevier, vol. 85(PB).
    5. Gong, Qipeng & Kou, Fangcheng & Sun, Xiaoyu & Zou, Yu & Mo, Jinhan & Wang, Xin, 2022. "Towards zero energy buildings: A novel passive solar house integrated with flat gravity-assisted heat pipes," Applied Energy, Elsevier, vol. 306(PA).
    6. Sun, Yanwei & Li, Ying & Wang, Run & Ma, Renfeng, 2022. "Measuring dynamics of solar energy resource quality: Methodology and policy implications for reducing regional energy inequality," Renewable Energy, Elsevier, vol. 197(C), pages 138-150.
    7. Li, Jianglong & Ho, Mun Sing & Xie, Chunping & Stern, Nicholas, 2022. "China's flexibility challenge in achieving carbon neutrality by 2060," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    8. Olabi, A.G. & Abdelkareem, Mohammad Ali, 2022. "Renewable energy and climate change," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    9. Zhang, Alex Hongliang & Sirin, Selahattin Murat & Fan, Conglai & Bu, Maoliang, 2022. "An analysis of the factors driving utility-scale solar PV investments in China: How effective was the feed-in tariff policy?," Energy Policy, Elsevier, vol. 167(C).
    10. Zhu, Zhishuang & Liao, Hua & Liu, Li, 2021. "The role of public energy R&D in energy conservation and transition: Experiences from IEA countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    11. An, Su & Wang, Honglei & Leng, Xiaoxia, 2022. "Optimal operation of multi-micro energy grids under distribution network in Southwest China," Applied Energy, Elsevier, vol. 309(C).
    12. Gao, Chengkang & Zhu, Sulong & An, Nan & Na, Hongming & You, Huan & Gao, Chengbo, 2021. "Comprehensive comparison of multiple renewable power generation methods: A combination analysis of life cycle assessment and ecological footprint," Renewable and Sustainable Energy Reviews, Elsevier, vol. 147(C).
    13. Liu, Chang & Liu, Linlin & Zhang, Dayong & Fu, Jiasha, 2021. "How does the capital market respond to policy shocks? Evidence from listed solar photovoltaic companies in China," Energy Policy, Elsevier, vol. 151(C).
    14. Li, Zeyun & Kuo, Tsung-Hsien & Siao-Yun, Wei & The Vinh, Luu, 2022. "Role of green finance, volatility and risk in promoting the investments in Renewable Energy Resources in the post-covid-19," Resources Policy, Elsevier, vol. 76(C).
    15. Yin, Linfei & Cao, Xinghui & Liu, Dongduan, 2023. "Weighted fully-connected regression networks for one-day-ahead hourly photovoltaic power forecasting," Applied Energy, Elsevier, vol. 332(C).
    16. Mao, Mingxuan & Chen, Siyu & Zhao, Liuqing & Feng, Xinying & Ma, Fuping, 2023. "Pavement PV array reconfiguration strategy based on traveling salesman problem," Energy, Elsevier, vol. 284(C).
    17. Su, Xing & Xu, Zehan & Tian, Shaochen & Chen, Chaoyang & Huang, Yixiang & Geng, Yining & Chen, Junfeng, 2023. "Life cycle assessment of three typical solar energy utilization systems in different regions of China," Energy, Elsevier, vol. 278(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zou, Hongyang & Du, Huibin & Brown, Marilyn A. & Mao, Guozhu, 2017. "Large-scale PV power generation in China: A grid parity and techno-economic analysis," Energy, Elsevier, vol. 134(C), pages 256-268.
    2. La Monaca, Sarah & Ryan, Lisa, 2017. "Solar PV where the sun doesn’t shine: Estimating the economic impacts of support schemes for residential PV with detailed net demand profiling," Energy Policy, Elsevier, vol. 108(C), pages 731-741.
    3. Zou, Hongyang & Du, Huibin & Ren, Jingzheng & Sovacool, Benjamin K. & Zhang, Yongjie & Mao, Guozhu, 2017. "Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 197-206.
    4. Wu, Qiyan & Zhang, Xiaoling & Sun, Jingwei & Ma, Zhifei & Zhou, Chen, 2016. "Locked post-fossil consumption of urban decentralized solar photovoltaic energy: A case study of an on-grid photovoltaic power supply community in Nanjing, China," Applied Energy, Elsevier, vol. 172(C), pages 1-11.
    5. Yu, Chin-Hsien & Wu, Xiuqin & Lee, Wen-Chieh & Zhao, Jinsong, 2021. "Resource misallocation in the Chinese wind power industry: The role of feed-in tariff policy," Energy Economics, Elsevier, vol. 98(C).
    6. Ruyin Long & Wenhua Cui & Qianwen Li, 2017. "The Evolution and Effect Evaluation of Photovoltaic Industry Policy in China," Sustainability, MDPI, vol. 9(12), pages 1-40, November.
    7. Sommerfeldt, Nelson & Madani, Hatef, 2017. "Revisiting the techno-economic analysis process for building-mounted, grid-connected solar photovoltaic systems: Part one – Review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 1379-1393.
    8. Grafström, Jonas & Poudineh, Rahmat, 2023. "No evidence of counteracting policy effects on European solar power invention and diffusion," Energy Policy, Elsevier, vol. 172(C).
    9. Wang, Xiaokui & Bamisile, Olusola & Chen, Shuheng & Xu, Xiao & Luo, Shihua & Huang, Qi & Hu, Weihao, 2022. "Decarbonization of China's electricity systems with hydropower penetration and pumped-hydro storage: Comparing the policies with a techno-economic analysis," Renewable Energy, Elsevier, vol. 196(C), pages 65-83.
    10. Carlos J. Sarasa-Maestro & Rodolfo Dufo-López & José L. Bernal-Agustín, 2016. "Analysis of Photovoltaic Self-Consumption Systems," Energies, MDPI, vol. 9(9), pages 1-18, August.
    11. Zhong, Teng & Zhang, Zhixin & Chen, Min & Zhang, Kai & Zhou, Zixuan & Zhu, Rui & Wang, Yijie & Lü, Guonian & Yan, Jinyue, 2021. "A city-scale estimation of rooftop solar photovoltaic potential based on deep learning," Applied Energy, Elsevier, vol. 298(C).
    12. Xin-gang, Zhao & Wei, Wang & Jieying, Wang, 2022. "The policy effects of demand-pull and technology-push on the diffusion of wind power: A scenario analysis based on system dynamics approach," Energy, Elsevier, vol. 261(PA).
    13. Ye, Liang-Cheng & Rodrigues, João F.D. & Lin, Hai Xiang, 2017. "Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016," Applied Energy, Elsevier, vol. 203(C), pages 496-505.
    14. Fuquan Zhao & Feiqi Liu & Han Hao & Zongwei Liu, 2020. "Carbon Emission Reduction Strategy for Energy Users in China," Sustainability, MDPI, vol. 12(16), pages 1-19, August.
    15. Chen, Han & Chen, Wenying, 2021. "Status, trend, economic and environmental impacts of household solar photovoltaic development in China: Modelling from subnational perspective," Applied Energy, Elsevier, vol. 303(C).
    16. Zhang, Sufang, 2016. "Analysis of DSPV (distributed solar PV) power policy in China," Energy, Elsevier, vol. 98(C), pages 92-100.
    17. Jeon, Chanwoong & Lee, Jeongjin & Shin, Juneseuk, 2015. "Optimal subsidy estimation method using system dynamics and the real option model: Photovoltaic technology case," Applied Energy, Elsevier, vol. 142(C), pages 33-43.
    18. Su, Xing & Xu, Zehan & Tian, Shaochen & Chen, Chaoyang & Huang, Yixiang & Geng, Yining & Chen, Junfeng, 2023. "Life cycle assessment of three typical solar energy utilization systems in different regions of China," Energy, Elsevier, vol. 278(C).
    19. Gyanendra Singh Sisodia & Einas Awad & Heba Alkhoja & Bruno S. Sergi, 2020. "Strategic business risk evaluation for sustainable energy investment and stakeholder engagement: A proposal for energy policy development in the Middle East through Khalifa funding and land subsidies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2789-2802, September.
    20. Oliva H., Sebastian & Passey, Rob & Abdullah, Md Abu, 2019. "A semi-empirical financial assessment of combining residential photovoltaics, energy efficiency and battery storage systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 105(C), pages 206-214.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:132:y:2020:i:c:s1364032120302938. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.