IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v118y2018icp555-564.html
   My bibliography  Save this article

Dynamic subsidy model of photovoltaic distributed generation in China

Author

Listed:
  • He, Yongxiu
  • Pang, Yuexia
  • Li, Xinmin
  • Zhang, Minhui

Abstract

The differences in resources between regions and the environmental benefit are not currently considered in the subsidy policy on the photovoltaic distributed generation in China. To promote a further development of distributed generation, this paper establishes dynamic subsidy models for photovoltaic distributed generation from the aspect of the emission reduction benefit, based on a dynamic generation cost simulation, which is combined with the learning curve of cost. For projects that their internal rate of return does not reach the basic rate, a certain proportion of the initial investment subsidy will be provided. The calculated results show that with the gradual progress of photovoltaic power generation technology, the emission reduction benefit subsidy will be reduced with the reduction of unit cost. Moreover, factors such as the resources level, the proportion of generation internal consumption by the project and subsidies, all have an important impact on the internal rate of return of photovoltaic distributed generation projects.

Suggested Citation

  • He, Yongxiu & Pang, Yuexia & Li, Xinmin & Zhang, Minhui, 2018. "Dynamic subsidy model of photovoltaic distributed generation in China," Renewable Energy, Elsevier, vol. 118(C), pages 555-564.
    • Handle: RePEc:eee:renene:v:118:y:2018:i:c:p:555-564
    DOI: 10.1016/j.renene.2017.11.042
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148117311436
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2017.11.042?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. Zhang, Fang & Deng, Hao & Margolis, Robert & Su, Jun, 2015. "Analysis of distributed-generation photovoltaic deployment, installation time and cost, market barriers, and policies in China," Energy Policy, Elsevier, vol. 81(C), pages 43-55.
    2. Wiser, Ryan & Millstein, Dev & Mai, Trieu & Macknick, Jordan & Carpenter, Alberta & Cohen, Stuart & Cole, Wesley & Frew, Bethany & Heath, Garvin, 2016. "The environmental and public health benefits of achieving high penetrations of solar energy in the United States," Energy, Elsevier, vol. 113(C), pages 472-486.
    3. Ma, Zhixiao & Xue, Bing & Geng, Yong & Ren, Wanxia & Fujita, Tsuyoshi & Zhang, Zilong & Puppim de Oliveira, Jose A. & Jacques, David A. & Xi, Fengming, 2013. "Co-benefits analysis on climate change and environmental effects of wind-power: A case study from Xinjiang, China," Renewable Energy, Elsevier, vol. 57(C), pages 35-42.
    4. Theo, Wai Lip & Lim, Jeng Shiun & Ho, Wai Shin & Hashim, Haslenda & Lee, Chew Tin, 2017. "Review of distributed generation (DG) system planning and optimisation techniques: Comparison of numerical and mathematical modelling methods," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 531-573.
    5. Dong, Jun & Feng, Tian-tian & Sun, Hong-xing & Cai, Hong-xin & Li, Rong & Yang, Yisheng, 2016. "Clean distributed generation in China: Policy options and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 753-764.
    6. Umamaheswaran, Swarnalakshmi & Rajiv, Seth, 2015. "Financing large scale wind and solar projects—A review of emerging experiences in the Indian context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 166-177.
    7. Liou, Hwa Meei, 2015. "Comparing feed-in tariff incentives in Taiwan and Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1021-1034.
    8. Simpson, Genevieve & Clifton, Julian, 2016. "Subsidies for residential solar photovoltaic energy systems in Western Australia: Distributional, procedural and outcome justice," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 262-273.
    9. Hong, Sungjun & Chung, Yanghon & Woo, Chungwon, 2015. "Scenario analysis for estimating the learning rate of photovoltaic power generation based on learning curve theory in South Korea," Energy, Elsevier, vol. 79(C), pages 80-89.
    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. D'Adamo, Idiano & Gastaldi, Massimo & Morone, Piergiuseppe, 2020. "The post COVID-19 green recovery in practice: Assessing the profitability of a policy proposal on residential photovoltaic plants," Energy Policy, Elsevier, vol. 147(C).
    2. Shali Wang & Jiaxi Wu & Yunan Peng & Jane Xu & Lisa Leinonen & Yuyu Wang & Zheng Meng, 2022. "Influence of Residential Photovoltaic Promotion Policy on Installation Intention in Typical Regions of China," Sustainability, MDPI, vol. 14(14), pages 1-30, July.
    3. Xu, Zhitao & Elomri, Adel & Al-Ansari, Tareq & Kerbache, Laoucine & El Mekkawy, Tarek, 2022. "Decisions on design and planning of solar-assisted hydroponic farms under various subsidy schemes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    4. Yu Zeng & Weidong Chen, 2019. "The Determination of Concession Period for Build-Operate-Transfer Solar Photovoltaic Power Project under Policy Incentives: A Case Study of China," Energies, MDPI, vol. 12(18), pages 1-23, September.
    5. 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.
    6. 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.
    7. Xu, Xinkuo & Guan, Chengmei & Jin, Jiayu, 2018. "Valuing the carbon assets of distributed photovoltaic generation in China," Energy Policy, Elsevier, vol. 121(C), pages 374-382.
    8. D’Adamo, Idiano & Falcone, Pasquale Marcello & Gastaldi, Massimo & Morone, Piergiuseppe, 2020. "The economic viability of photovoltaic systems in public buildings: Evidence from Italy," Energy, Elsevier, vol. 207(C).
    9. Zhang, M.M. & Zhang, C. & Liu, L.Y. & Zhou, D.Q., 2020. "Is it time to launch grid parity in the Chinese solar photovoltaic industry? Evidence from 335 cities," Energy Policy, Elsevier, vol. 147(C).
    10. Xin-gang, Zhao & Yi-min, Xie, 2019. "The economic performance of industrial and commercial rooftop photovoltaic in China," Energy, Elsevier, vol. 187(C).
    11. 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).
    12. Xu, Li & Zhang, Qin & Wang, Keying & Shi, Xunpeng, 2020. "Subsidies, loans, and companies' performance: evidence from China's photovoltaic industry," Applied Energy, Elsevier, vol. 260(C).
    13. Luo, Shunjun & Zhang, Shaohui, 2022. "How R&D expenditure intermediate as a new determinants for low carbon energy transition in Belt and Road Initiative economies," Renewable Energy, Elsevier, vol. 197(C), pages 101-109.
    14. Zhang, Mingming & Liu, Liyun & Wang, Qunwei & Zhou, Dequn, 2020. "Valuing investment decisions of renewable energy projects considering changing volatility," Energy Economics, Elsevier, vol. 92(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. Sioshansi, Ramteen, 2016. "Retail electricity tariff and mechanism design to incentivize distributed renewable generation," Energy Policy, Elsevier, vol. 95(C), pages 498-508.
    2. Hayibo, Koami Soulemane & Pearce, Joshua M., 2021. "A review of the value of solar methodology with a case study of the U.S. VOS," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    3. 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.
    4. Cabrera-Tobar, Ana & Bullich-Massagué, Eduard & Aragüés-Peñalba, Mònica & Gomis-Bellmunt, Oriol, 2016. "Review of advanced grid requirements for the integration of large scale photovoltaic power plants in the transmission system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 971-987.
    5. Kwag, Kyuhyeong & Shin, Hansol & Oh, Hyobin & Yun, Sangmin & Kim, Tae Hyun & Hwang, Pyeong-Ik & Kim, Wook, 2023. "Bilevel programming approach for the quantitative analysis of renewable portfolio standards considering the electricity market," Energy, Elsevier, vol. 263(PD).
    6. Xu, Li-jun & Fan, Xiao-chao & Wang, Wei-qing & Xu, Lei & Duan, You-lian & Shi, Rui-jing, 2017. "Renewable and sustainable energy of Xinjiang and development strategy of node areas in the “Silk Road Economic Belt”," Renewable and Sustainable Energy Reviews, Elsevier, vol. 79(C), pages 274-285.
    7. Lan, Haifeng & Gou, Zhonghua & Yang, Linchuan, 2020. "House price premium associated with residential solar photovoltaics and the effect from feed-in tariffs: A case study of Southport in Queensland, Australia," Renewable Energy, Elsevier, vol. 161(C), pages 907-916.
    8. Kumar, Pankaj & Brar, S.K. & Pandove, Gulab & Aulakh, C.S., 2021. "Bioformulation of Azotobacter spp. and Streptomyces badius on the productivity, economics and energetics of wheat (Triticum aestivum L.)," Energy, Elsevier, vol. 232(C).
    9. Iribarren, Diego & Martín-Gamboa, Mario & Navas-Anguita, Zaira & García-Gusano, Diego & Dufour, Javier, 2020. "Influence of climate change externalities on the sustainability-oriented prioritisation of prospective energy scenarios," Energy, Elsevier, vol. 196(C).
    10. Ahmed S. Alahmed & Lang Tong, 2022. "Integrating Distributed Energy Resources: Optimal Prosumer Decisions and Impacts of Net Metering Tariffs," Papers 2204.06115, arXiv.org, revised May 2022.
    11. Yushchenko, Alisa & Patel, Martin Kumar, 2017. "Cost-effectiveness of energy efficiency programs: How to better understand and improve from multiple stakeholder perspectives?," Energy Policy, Elsevier, vol. 108(C), pages 538-550.
    12. Krzysztof Mik & Paweł Zawadzki & Jan Tarłowski & Marcin Bugaj & Piotr Grygiel & Sebastian Bykuć, 2021. "Multifaceted Analyses of Four Different Prototype Lightweight Photovoltaic Modules of Novel Structure," Energies, MDPI, vol. 14(8), pages 1-16, April.
    13. Da Liu & Kun Sun & Han Huang & Pingzhou Tang, 2018. "Monthly Load Forecasting Based on Economic Data by Decomposition Integration Theory," Sustainability, MDPI, vol. 10(9), pages 1-22, September.
    14. Chun Chih Chen, 2021. "The path to a 2025 nuclear-free Taiwan: An analysis of dynamic competition among emissions, energy, and economy," Energy & Environment, , vol. 32(4), pages 668-689, June.
    15. Arifa Tanveer & Shihong Zeng & Muhammad Irfan & Rui Peng, 2021. "Do Perceived Risk, Perception of Self-Efficacy, and Openness to Technology Matter for Solar PV Adoption? An Application of the Extended Theory of Planned Behavior," Energies, MDPI, vol. 14(16), pages 1-24, August.
    16. Chiara Modanese & Hannu S. Laine & Toni P. Pasanen & Hele Savin & Joshua M. Pearce, 2018. "Economic Advantages of Dry-Etched Black Silicon in Passivated Emitter Rear Cell (PERC) Photovoltaic Manufacturing," Energies, MDPI, vol. 11(9), pages 1-18, September.
    17. Hamed Moazami Goodarzi & Mohammad Hosein Kazemi, 2017. "A Novel Optimal Control Method for Islanded Microgrids Based on Droop Control Using the ICA-GA Algorithm," Energies, MDPI, vol. 10(4), pages 1-17, April.
    18. Sumarno, Theresia B. & Sihotang, Parulian & Prawiraatmadja, Widhyawan, 2022. "Exploring Indonesia's energy policy failures through the JUST framework," Energy Policy, Elsevier, vol. 164(C).
    19. Yang, Jin & Chen, Bin, 2016. "Energy–water nexus of wind power generation systems," Applied Energy, Elsevier, vol. 169(C), pages 1-13.
    20. Craig, Michael T. & Jaramillo, Paulina & Hodge, Bri-Mathias & Williams, Nathaniel J. & Severnini, Edson, 2018. "A retrospective analysis of the market price response to distributed photovoltaic generation in California," Energy Policy, Elsevier, vol. 121(C), pages 394-403.

    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:renene:v:118:y:2018:i:c:p:555-564. 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.journals.elsevier.com/renewable-energy .

    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.