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Economic Assessment of the Peer-to-Peer Trading Policy of Distributed PV Electricity: A Case Study in China

Author

Listed:
  • Ying Wang

    (Key Laboratory of Measurement and Control of Complex Systems of Engineering, Ministry of Education, Southeast University, Nanjing 210096, China)

  • Lidan Tian

    (Key Laboratory of Measurement and Control of Complex Systems of Engineering, Ministry of Education, Southeast University, Nanjing 210096, China)

  • Junrong Xia

    (China Electric Power Research Institute, Nanjing 210003, China)

  • Weishi Zhang

    (School of Geographic and Environmental Sciences, Tianjin Normal University, Tianjin 300387, China
    Avation Technology Research Center, Aviation University, Tianjin 300204, China)

  • Kaifeng Zhang

    (Key Laboratory of Measurement and Control of Complex Systems of Engineering, Ministry of Education, Southeast University, Nanjing 210096, China)

Abstract

China’s government launched a policy in October 2017 to permit the distributed generators to peer-to-peer trade their electricity generation on the market. Several clauses in the policy document are, however, unclear and ambiguous. This work identifies three vital but not clearly detailed issues in the policy document: (1) participation eligibility, (2) the grid fee calculation method, and (3) subsidy rates. Then, we carry out a comprehensive analysis of the economic impacts of the trade policy based on a case study of an eastern city in China. Sensitivity analyses on the impacts of the subsidy rates, transmission and distribution prices (TDPs), and end-user regulated prices are conducted. The results show that the trading policy will benefit the photovoltaic (PV) generators with more revenue by 6–11%, reduce the cost for end-users by 6–12%, and decrease the revenue of the power grid company by 32–55%.

Suggested Citation

  • Ying Wang & Lidan Tian & Junrong Xia & Weishi Zhang & Kaifeng Zhang, 2020. "Economic Assessment of the Peer-to-Peer Trading Policy of Distributed PV Electricity: A Case Study in China," Sustainability, MDPI, vol. 12(13), pages 1-22, June.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5235-:d:377247
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    References listed on IDEAS

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