Abstract
Due to the issue of cost and benefit, the investment demand and consumption demand of micro-grids are insufficient in the early stages, which makes all parties lack motivation to participate in the development of micro-grid projects and leads to the slow development of micro-grids. In order to promote the development of micro-grids, the corresponding incentive mechanism should be designed to motivate the development of micro-grid projects. Therefore, this paper builds a multi-stage incentive model of micro-grid project development involving government, grid corporation, energy supplier, equipment supplier, and the user in order to study the incentive problems of micro-grid project development. Through the solution and analysis of the model, this paper deduces the optimal subsidy of government and the optimal cooperation incentive of the energy supplier, and calculates the optimal pricing strategy of grid corporation and the energy supplier, and analyzes the influence of relevant factors on optimal subsidy and incentive. The study reveals that the cost and social benefit of micro-grid development have a positive impact on micro-grid subsidy, technical level and equipment quality of equipment supplier as well as the fact that government subsidies positively adjust the level of cooperation incentives and price incentives. In the end, the validity of the model is verified by numerical analysis, and the incentive strategy of each participant is analyzed. The research of this paper is of great significance to encourage project development of micro-grids and to promote the sustainable development of micro-grids.
Highlights
The micro-grid as one of the most important utilization forms of renewable energy and clean energy, and as a result, it has received much attention
This paper puts forward that the government, the grid corporation, the energy supplier, the equipment supplier and the user are the main participants in the development of a micro-grid project, and analyzes and deduces the interest demands and return functions of the participants
The analysis concludes that the social benefits, the construction cost of the grid corporation and the construction cost of the energy supplier have a positive impact on the subsidy for the micro-grid project
Summary
The micro-grid as one of the most important utilization forms of renewable energy and clean energy, and as a result, it has received much attention. The efficiency and quality of these incentives directly affect the initiative and effort level of participants involved in micro-grid project development, so these aspects are important for the development of the micro-grid. If the incentive mechanism does not balance the interests of all parties, it will seriously affect the quality and efficiency of micro-grid project development. In the development of micro-grid projects, the corresponding incentive mechanism is required to motivate the participation of all parties and balance their interests. The three-stage incentive game model developed by a two-nested leader–follower model, involved five participants (government, grid corporation, energy investor, equipment supplier and user). Analysis of the results of the model have important reference for how to stimulate the investment demand and consumption demand of micro-grid projects and how to encourage all parties to actively and efficiently participate in micro-grid project development. The rest of the paper is arranged as follows: in Section 2, we introduce the literature review; in Section 3, we introduce the assumptions, build the models, and analyze incentive mechanisms based on multi-player games; in Section 4, we perform a numerical analysis to further analyze incentive strategy; and in Section 5, we draw the conclusions
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