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Policies and economic efficiency of China's distributed photovoltaic and energy storage industry

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  • Yang, Fei-fei
  • Zhao, Xin-gang

Abstract

Storage energy is an effective means and key technology for overcoming the intermittency and instability of photovoltaic (PV) power. In the early stages of the PV and energy storage (ES) industries, economic efficiency is highly dependent on industrial policies. This study analyzes the key points of policies on technical support, management drive, and financial support. Focusing on the efficiency of PV power and the power load of users, including households and enterprises, in Shanghai City over 24 h in 2016, this study analyzes the costs, benefits, internal rates of return, and investment recovery periods of distributed PV (DPV) and ES systems in the current policy context. This study also discusses the influences of various policy variables, including the ES battery capacity, the peak-valley price ratio, feed-in tariffs for DPV, and the ratio of grid-connected surplus PV power, on economic efficiency. The results show that in China's current policy context, both household and enterprise users of PV power would gain some economic benefits if PV systems were fitted with aqueous sodium-ion batteries of an appropriate capacity. Finally, this study offers some additional government policy suggestions.

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  • Yang, Fei-fei & Zhao, Xin-gang, 2018. "Policies and economic efficiency of China's distributed photovoltaic and energy storage industry," Energy, Elsevier, vol. 154(C), pages 221-230.
    • Handle: RePEc:eee:energy:v:154:y:2018:i:c:p:221-230
    DOI: 10.1016/j.energy.2018.04.135
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    Cited by:

    1. Tang, Songlin & Zhou, Wenbing & Li, Xinjin & Chen, Yingchao & Zhang, Qian & Zhang, Xiliang, 2021. "Subsidy strategy for distributed photovoltaics: A combined view of cost change and economic development," Energy Economics, Elsevier, vol. 97(C).
    2. Liu, Jicheng & Lu, Yunyuan, 2022. "Research on the evaluation of China's photovoltaic policy driving ability under the background of carbon neutrality," Energy, Elsevier, vol. 250(C).
    3. Tomas Baležentis & Dalia Štreimikienė, 2019. "Sustainability in the Electricity Sector through Advanced Technologies: Energy Mix Transition and Smart Grid Technology in China," Energies, MDPI, vol. 12(6), pages 1-21, March.
    4. Di Zhu & Yinghong Wang & Fenglin Zhang, 2022. "Energy Price Prediction Integrated with Singular Spectrum Analysis and Long Short-Term Memory Network against the Background of Carbon Neutrality," Energies, MDPI, vol. 15(21), pages 1-20, October.
    5. 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.
    6. Li, Longxi & Cao, Xilin, 2022. "Comprehensive effectiveness assessment of energy storage incentive mechanisms for PV-ESS projects based on compound real options," Energy, Elsevier, vol. 239(PA).
    7. Liao, Maolin & Zhang, Ze & Jia, Jin & Xiong, Jiao & Han, Mengyao, 2022. "Mapping China's photovoltaic power geographies: Spatial-temporal evolution, provincial competition and low-carbon transition," Renewable Energy, Elsevier, vol. 191(C), pages 251-260.
    8. Zhou, Dequn & Chong, Zhaotian & Wang, Qunwei, 2020. "What is the future policy for photovoltaic power applications in China? Lessons from the past," Resources Policy, Elsevier, vol. 65(C).
    9. Chong, Zhaotian & Wang, Qunwei & Wang, Lei, 2023. "Is the photovoltaic power generation policy effective in China? A quantitative analysis of policy synergy based on text mining," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    10. Xin-gang, Zhao & Wei, Wang & Ling, Wu, 2021. "A dynamic analysis of research and development incentive on China's photovoltaic industry based on system dynamics model," Energy, Elsevier, vol. 233(C).
    11. Gao, Jianwei & Guo, Fengjia & Li, Xiangzhen & Huang, Xin & Men, Huijuan, 2021. "Risk assessment of offshore photovoltaic projects under probabilistic linguistic environment," Renewable Energy, Elsevier, vol. 163(C), pages 172-187.
    12. Koo, Choongwan & Si, Ke & Li, Wenzhuo & Lee, JeeHee, 2022. "Integrated approach to evaluating the impact of feed-in tariffs on the life cycle economic performance of photovoltaic systems in China: A case study of educational facilities," Energy, Elsevier, vol. 254(PB).
    13. Zhang, M. & Yang, X.N., 2021. "Administrative framework barriers to energy storage development in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    14. Zhang, Lei & Qin, Quande & Wei, Yi-Ming, 2019. "China's distributed energy policies: Evolution, instruments and recommendation," Energy Policy, Elsevier, vol. 125(C), pages 55-64.
    15. Han, Mengyao & Xiong, Jiao & Wang, Siyuan & Yang, Yu, 2020. "Chinese photovoltaic poverty alleviation: Geographic distribution, economic benefits and emission mitigation," Energy Policy, Elsevier, vol. 144(C).

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