Abstract
China’s government launched a policy in October 2017 to permit the distributed generators to peer-to-peer trade their electricity generation on the market. Several clauses in the policy document are, however, unclear and ambiguous. This work identifies three vital but not clearly detailed issues in the policy document: (1) participation eligibility, (2) the grid fee calculation method, and (3) subsidy rates. Then, we carry out a comprehensive analysis of the economic impacts of the trade policy based on a case study of an eastern city in China. Sensitivity analyses on the impacts of the subsidy rates, transmission and distribution prices (TDPs), and end-user regulated prices are conducted. The results show that the trading policy will benefit the photovoltaic (PV) generators with more revenue by 6–11%, reduce the cost for end-users by 6–12%, and decrease the revenue of the power grid company by 32–55%.
Highlights
Distributed photovoltaic generation, either located on rooftops or ground-mounted, is by far one of the most important and fast-growing renewable energy technologies
In the No 1901 document, the calculation method of the grid fee is as follows: “Equals to the transmission and distribution prices (TDPs) of the voltage level at which the end-user is connected minus the TDP of the highest voltage level among the voltage levels which cover the Peer-to-Peer trade of the distributed PV generation”
Compared to high TDPs, the revenues of the power grid company will decrease by nearly 74% in Model A and decrease by 50% in MIondtehleBsiennlsoitwivTitDyPasn.aFloyrsitsh, ethPeVTgDePnseriantoArns haundi Ptrhoeveinndce-uasnedrsG, tuhaenegcdonoonmg iPcrcohvainncgeesaraeffaepctpeldiebdy, atsheshToDwPns baryeAsmppaelln, danixdAthTeaybcleasnAsh2aarendthAe 3im, apnadctws tehnroaumgehtthheembialast“ehraigl hneTgDotPias”tioanndm“elcohwanTisDmP.sI”n, rMesopdecetliCve,lTy.DFPigs udroe n9ostuamffmecatrtihzeesPtVhegdeniffeerraetnocrse’sainndthtehecopsotswoerrrgerviedncuoems bpeatnwye’senrehviegnhuaensdbelocwauTseDtPhse
Summary
Distributed photovoltaic generation, either located on rooftops or ground-mounted, is by far one of the most important and fast-growing renewable energy technologies. Driven by technological advancements and policy encouragement, the distributed photovoltaic generations have developed rapidly in China in recent years. According to the 13th Five-year plan for electric power development in China, the installed capacity of solar power is predicted to reach more than 110 GW by 2020, of which more than 60 GW is distributed generation [2,3]. The trading restriction of the power electricity has hindered the development of China’s distributed PV generation for a long time. HMaesabnewehnileim, aitletdhowugohrktthoe cpoomtepnrteihalenbseinveefliytsabnraoluyzgehthbeyetchoentormadice vpaolluiceyohf athve dbiesetnribwuitdeedlyphreoctogvnoilztaeidc,(tPhVer)egehnaesrbaetieonnluimnditerd work to comprehensively analyze the economic value of the distributed photovoltaic (PV) generation under different trading modes. This research takes a comprehensive analysis of the economic impacts on the PV generators, end-users, the power grid company, and the government from the peer-to-peer trade of the distributed PV generation.
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