IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v11y2018i5p1291-d147657.html
   My bibliography  Save this article

Study on the Incentives Mechanism for the Development of Distributed Photovoltaic Systems from a Long-Term Perspective

Author

Listed:
  • Chenjun Sun

    (School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
    State Grid Hebei Electric Power Supply Co., Ltd., Shijiazhuang 050022, China)

  • Zengqiang Mi

    (School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • Hui Ren

    (School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
    State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, Baoding 071003, China)

  • Fei Wang

    (School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
    State Key Laboratory of Alternate Electrical Power System with Renewable Energy Sources, Baoding 071003, China)

  • Jing Chen

    (School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China)

  • David Watts

    (Department of Electrical Engineering, Pontificia Universidad Católica de Chile, Santiago 7820436, Chile
    Centro de Energía UC, Santiago 7820436, Chile)

  • Jinling Lu

    (School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China)

Abstract

Sharing the benefits of distribution systems from the integration of distributed photovoltaic systems (DGPVs) with investors is vital to the coordinated development of DGPVs and active distribution systems (ADN). The investment and development of DGPVs, incentive policies, and the development of distribution system interact, and the interactions vary with the changes in the on-grid capacity of DGPVs. In this paper, an event-driven co-simulation platform is built to simulate the abovementioned interaction among DGPVs, ADN, and incentive policy under a long-term time frame. The platform includes an investment model of DGPV investors and an ADN model with consideration of the growth of the ADN. On this platform, we study how multiple factors, including incentive system, global horizontal radiance (GHR), and cost, affect the investment and integration of DGPVs in the future 10 years. Simulation and analysis showed that investors’ decisions are more sensitive to variation in GHR and cost, followed by variation in tariff system, subsidy, and self-use ratio. Distribution subsidies have certain impact on the development of DGPV and could partially replace the national and provincial capacity and generation subsidies. When the on-grid capacity reaches a certain level, the distribution subsidy reaches a dynamic equilibrium.

Suggested Citation

  • Chenjun Sun & Zengqiang Mi & Hui Ren & Fei Wang & Jing Chen & David Watts & Jinling Lu, 2018. "Study on the Incentives Mechanism for the Development of Distributed Photovoltaic Systems from a Long-Term Perspective," Energies, MDPI, vol. 11(5), pages 1-18, May.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:5:p:1291-:d:147657
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/11/5/1291/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/11/5/1291/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Dahai & Wang, Jiaqi & Lin, Yonggang & Si, Yulin & Huang, Can & Yang, Jing & Huang, Bin & Li, Wei, 2017. "Present situation and future prospect of renewable energy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 865-871.
    2. Yuan, Jiahai & Sun, Shenghui & Zhang, Wenhua & Xiong, Minpeng, 2014. "The economy of distributed PV in China," Energy, Elsevier, vol. 78(C), pages 939-949.
    3. 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.
    4. Kannan, Nadarajah & Vakeesan, Divagar, 2016. "Solar energy for future world: - A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1092-1105.
    5. Fei Wang & Zengqiang Mi & Shi Su & Hongshan Zhao, 2012. "Short-Term Solar Irradiance Forecasting Model Based on Artificial Neural Network Using Statistical Feature Parameters," Energies, MDPI, vol. 5(5), pages 1-16, May.
    6. Jo, J.H. & Loomis, D.G. & Aldeman, M.R., 2013. "Optimum penetration of utility-scale grid-connected solar photovoltaic systems in Illinois," Renewable Energy, Elsevier, vol. 60(C), pages 20-26.
    7. Zhang, Sufang & He, Yongxiu, 2013. "Analysis on the development and policy of solar PV power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 393-401.
    8. Shafiee, Shahriar & Topal, Erkan, 2009. "When will fossil fuel reserves be diminished?," Energy Policy, Elsevier, vol. 37(1), pages 181-189, January.
    9. Jeon, Chanwoong & Shin, Juneseuk, 2014. "Long-term renewable energy technology valuation using system dynamics and Monte Carlo simulation: Photovoltaic technology case," Energy, Elsevier, vol. 66(C), pages 447-457.
    10. Chen, Zhisong & Su, Shong-Iee Ivan, 2014. "Photovoltaic supply chain coordination with strategic consumers in China," Renewable Energy, Elsevier, vol. 68(C), pages 236-244.
    11. Bustos, Cristian & Watts, David & Ayala, Marysol, 2017. "Financial risk reduction in photovoltaic projects through ocean-atmospheric oscillations modeling," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 548-568.
    12. Guo, Xiaodan & Guo, Xiaopeng, 2015. "China's photovoltaic power development under policy incentives: A system dynamics analysis," Energy, Elsevier, vol. 93(P1), pages 589-598.
    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. Chenjun Sun & Zengqiang Mi & Hui Ren & Zhipeng Jing & Jinling Lu & David Watts, 2019. "Multi-Dimensional Indexes for the Sustainability Evaluation of an Active Distribution Network," Energies, MDPI, vol. 12(3), pages 1-24, January.

    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. Xiaodan Guo & Dongxiao Niu & Bowen Xiao, 2016. "Assessment of Air-Pollution Control Policy’s Impact on China’s PV Power: A System Dynamics Analysis," Energies, MDPI, vol. 9(5), pages 1-23, May.
    2. Kayser, Dirk, 2016. "Solar photovoltaic projects in China: High investment risks and the need for institutional response," Applied Energy, Elsevier, vol. 174(C), pages 144-152.
    3. Chenjun Sun & Zengqiang Mi & Hui Ren & Zhipeng Jing & Jinling Lu & David Watts, 2019. "Multi-Dimensional Indexes for the Sustainability Evaluation of an Active Distribution Network," Energies, MDPI, vol. 12(3), pages 1-24, January.
    4. Guo, Xiaodan & Guo, Xiaopeng, 2015. "China's photovoltaic power development under policy incentives: A system dynamics analysis," Energy, Elsevier, vol. 93(P1), pages 589-598.
    5. Zhang, Sufang, 2016. "Analysis of DSPV (distributed solar PV) power policy in China," Energy, Elsevier, vol. 98(C), pages 92-100.
    6. 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).
    7. 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.
    8. 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.
    9. Luo, Guo-liang & Long, Cheng-feng & Wei, Xiao & Tang, Wen-jun, 2016. "Financing risks involved in distributed PV power generation in China and analysis of countermeasures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 63(C), pages 93-101.
    10. 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.
    11. Aotian Song & Lin Lu & Zhizhao Liu & Man Sing Wong, 2016. "A Study of Incentive Policies for Building-Integrated Photovoltaic Technology in Hong Kong," Sustainability, MDPI, vol. 8(8), pages 1-21, August.
    12. Yang, Ying & Campana, Pietro Elia & Yan, Jinyue, 2020. "Potential of unsubsidized distributed solar PV to replace coal-fired power plants, and profits classification in Chinese cities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 131(C).
    13. Li, Yunwei & Chen, Kui & Ding, Ruixin & Zhang, Jing & Hao, Yu, 2023. "How do photovoltaic poverty alleviation projects relieve household energy poverty? Evidence from China," Energy Economics, Elsevier, vol. 118(C).
    14. Tang, Lei & Guo, Jue & Zhao, Boyang & Wang, Xiuli & Shao, Chengcheng & Wang, Yifei, 2021. "Power generation mix evolution based on rolling horizon optimal approach: A system dynamics analysis," Energy, Elsevier, vol. 224(C).
    15. Zhang, Lingxian & Wang, Jieqiong & Wen, Haojie & Fu, Zetian & Li, Xinxing, 2016. "Operating performance, industry agglomeration and its spatial characteristics of Chinese photovoltaic industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 65(C), pages 373-386.
    16. 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.
    17. Dong, Rentao & Xu, Jiuping & Lin, Bo, 2017. "ROI-based study on impact factors of distributed PV projects by LSSVM-PSO," Energy, Elsevier, vol. 124(C), pages 336-349.
    18. 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.
    19. Green, Jemma & Newman, Peter, 2017. "Citizen utilities: The emerging power paradigm," Energy Policy, Elsevier, vol. 105(C), pages 283-293.
    20. Yuzhuo Zhang & Xingang Zhao & Yi Zuo & Lingzhi Ren & Ling Wang, 2017. "The Development of the Renewable Energy Power Industry under Feed-In Tariff and Renewable Portfolio Standard: A Case Study of China’s Photovoltaic Power Industry," Sustainability, MDPI, vol. 9(4), pages 1-23, March.

    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:gam:jeners:v:11:y:2018:i:5:p:1291-:d:147657. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.