Abstract

Government subsidy is a powerful tool to motivate the development of a new energy industry. At the early stage of microgrid development, for the sake of the cost and benefit issue, it is necessary for the government to subsidize so as to support and promote the development of microgrids. However, a big challenge in practice is how to optimize the operational efficiency of the microgrid industry chain with varying targets and methods of subsidy. In order to explore this problem, we construct a subsidy model based on the microgrid industry chain, involving government, investor, operator, equipment supplier, and user. Through calculation and solution of this model, we obtain price and return indicators of each microgrid industry chain participant when the subsidy target differs. Based on that, we contrast and compare the optimal subsidy strategy and influencing factors when operational efficiency indicators vary. Finally, we validate and analyze this model with numerical analysis and discuss the impact of development stage, technological level, and change in subsidy amount on the operational efficiency of the microgrid industry chain and on the returns of each participant. This result is of great significance to subsidy practice for microgrids and the development of microgrids.

Highlights

  • Optimizing energy structures and pursuing clean and low-carbon development are essential requirements for promoting energy revolution and social sustainable development, and are urgently needed for economic and social transformation and development

  • A big challenge in practice is how to optimize the operational efficiency of the microgrid industry chain with varying targets and methods of subsidy

  • The four price indicators of operational efficiency of the microgrid industry chain are all determined by five parameters

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Summary

Introduction

Optimizing energy structures and pursuing clean and low-carbon development are essential requirements for promoting energy revolution and social sustainable development, and are urgently needed for economic and social transformation and development. One stream of research has focused on the technological field of microgrids, such as the power system [8], energy storage technology [9], control and protection technology [10,11], energy exchange between the microgrid and a large grid [12], microgrid system scheduling [13,14], microgrid system optimization [15],and other key technologies Another stream has studied the microgrid from the perspective of economy and management, including the costs and benefits of investment [16], the market operation mechanism [17], and cooperation between stakeholders of microgrids [18,19]. We construct a multiplayer game model involving government, investor, operator, equipment supplier, and user, and create subsidy models under which the government subsidizes different participants in the microgrid industrial chain.

Literature Review
Problem Description
Solution of the Model
Comparative Analysis of the Models and Discussion of Results
Conclusion
Return Indicator for Equipment Supplier πe Because the parameter values
Numerical Analysis
Impact of Microgrid Technology Change on Returns of All Participants
Findings
Conclusions
Full Text
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