Business model of distributed photovoltaic energy integrating investment and consulting services in China

Abstract

To promote the renewable energy development and reduce the power grid safety risk, promoting the power local consumption generated by distributed photovoltaic energy has received increasing attentions. Moreover, with the power market development, integrating the power market trading with distributed photovoltaic energy is a trend in China. Aiming to these targets, the paper designs a business model integrating investment and consulting services into distributed photovoltaic energy system. First, to encourage the market trading and promote the power local consumption, the double layer power sale platform is designed consisting of both B to B and B to C platforms. And a discount power sale price for local consumption is carried out. In the power platform, power contracts with a punishment for power gap are signed before the power consumption. Second, the consulting services are cited to reduce the power gap caused by power market trading, consisting of power output, power load and annual new installed capacity prediction. Third, considering the local users' power demand increase brought by the discount power sale price, a dynamic investment is integrated in the business model. Moreover, the simulation model and a comparative analysis model of stakeholders' benefits of new business model is constructed. Finally, an empirical analysis is conducted. The results show that the new model not only can promote energy local consumption, improve environment quality, ensure power grid safety, but also increase distributed energy investors' benefits, and reduce users’ electricity expenses and government subsidies.