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Socially optimal deployment strategy and incentive policy for solar photovoltaic community microgrid: A case of China

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  • Chen, Weidong
  • Wei, Pengbang

Abstract

Aiming to meet the increasingly diversified demand of electricity and abate emissions of electricity sector, the solar photovoltaic-powered community microgrid (SPCM) is encouraged in China. Based on an understanding of the distributed solar radiation intensity (SRI) in China, this paper explored the socially optimal deployment strategies of SPCM. And by formulating a leader–follower Stackelberg game, we investigated the role that emission permits trade policy can play in inducing the choice of SPCM. The empirical results show that not all the areas in China are suitable for the promotion of SPCM. And the social emissions concern (ε) has a big impact on the socially optimal deployment strategy of SPCM. Two factors determine whether the SPCM is inducible in a specific area: the located SRI and the incentive policy. And for a specific area, resident makes the choice based on whether the SPCM could be profitable. The results also demonstrate that a high price of CERs can achieve the effect of feed-in tariff policy in inducing SPCM, and emission permits trade policy as a market incentive mechanism can also internalize the external costs of CO2 emissions.

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  • Chen, Weidong & Wei, Pengbang, 2018. "Socially optimal deployment strategy and incentive policy for solar photovoltaic community microgrid: A case of China," Energy Policy, Elsevier, vol. 116(C), pages 86-94.
    • Handle: RePEc:eee:enepol:v:116:y:2018:i:c:p:86-94
    DOI: 10.1016/j.enpol.2018.01.056
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    Cited by:

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    4. Deng Xu & Yong Long, 2019. "The Impact of Government Subsidy on Renewable Microgrid Investment Considering Double Externalities," Sustainability, MDPI, vol. 11(11), pages 1-15, June.
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    6. Pablo Benalcazar & Adam Suski & Jacek Kamiński, 2020. "The Effects of Capital and Energy Subsidies on the Optimal Design of Microgrid Systems," Energies, MDPI, vol. 13(4), pages 1-23, February.
    7. Li, Wei & Lu, Can & Zhang, Yan-Wu, 2019. "Prospective exploration of future renewable portfolio standard schemes in China via a multi-sector CGE model," Energy Policy, Elsevier, vol. 128(C), pages 45-56.
    8. Shiva Amini & Salah Bahramara & Hêmin Golpîra & Bruno Francois & João Soares, 2022. "Techno-Economic Analysis of Renewable-Energy-Based Micro-Grids Considering Incentive Policies," Energies, MDPI, vol. 15(21), pages 1-19, November.
    9. Rami David Orejon-Sanchez & Jose Ramon Andres-Diaz & Alfonso Gago-Calderon, 2021. "Autonomous Photovoltaic LED Urban Street Lighting: Technical, Economic, and Social Viability Analysis Based on a Case Study," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    10. Younes Zahraoui & Ibrahim Alhamrouni & Saad Mekhilef & M. Reyasudin Basir Khan & Mehdi Seyedmahmoudian & Alex Stojcevski & Ben Horan, 2021. "Energy Management System in Microgrids: A Comprehensive Review," Sustainability, MDPI, vol. 13(19), pages 1-33, September.
    11. Chang, Ruidong & Cao, Yuan & Lu, Yujie & Shabunko, Veronika, 2019. "Should BIPV technologies be empowered by innovation policy mix to facilitate energy transitions? - Revealing stakeholders' different perspectives using Q methodology," Energy Policy, Elsevier, vol. 129(C), pages 307-318.
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