Abstract

There are still residents without access to electricity in some remote and less developed areas of China, which lead to low living standards and hinder sustainable development for these residents. In order to achieve the strategic targets of solving China’s energy poverty, realizing basic energy service equalization, and comprehensively building up a moderately prosperous society, several policies have been successively promulgated in recent years, which aim to solve the electricity access issue for residents living in remote and less developed areas. It is of great importance to determine the most economical mode of power supply in remote and less developed areas, which directly affects the economic efficiency of public investment projects. Therefore, this paper focuses on how to select the most economical power supply mode for rural electrification in China. Firstly, the primary modes to supply electricity for residents living in the remote and less developed areas are discussed, which include power grid extension mode and micro-grid mode. Secondly, based on the levelized cost of electricity (LCOE) technique, the life cycle economic cost accounting model for different power supply modes are built. Finally, taking a minority nationality village in Yunnan province as an example, the empirical analysis is performed, and the LCOEs of various possible modes for rural electrification are accounted. The results show that the photovoltaic (PV)-based independent micro-grid system is the most economical due to the minimum LCOE, namely 0.658 RMB/kWh. However, other power supply modes have much higher LCOEs. The LCOEs of power grid extension model, wind-based independent micro-grid system and biomass-based independent micro-grid system are 1.078 RMB/kWh, 0.704 RMB/kWh and 0.885 RMB/kWh, respectively. The proposed approach is effective and practical, which can provide reference for rural electrification in China.

Highlights

  • Energy is necessary for the production and operation of modern society, which is the important material basis for human survival and important driving force for the development of human society as well as economy [1,2]

  • A number of policies have been promulgated in succession to promote the electric universal service for providing electric energy to residents living in remote and less developed areas, such as ‘China’s Energy Policy (2012)’ promulgated by the State Council of China [8], ‘Three-year action plan for comprehensively solving electric usage problems for rural residents (2013–2015)’ issued by the National Energy Administration [9], and ‘Implementation opinions of speeding up energy development in poor areas to promote poverty alleviation (2016)’ proclaimed by the National Energy Administration [10]

  • On the basis of levelized cost of electricity (LCOE) technique, this paper proposes an optimal selection approach regarding power supply modes for rural electrification, which can achieve comparative analysis on economic cost of different power supply modes and determine the most economical power supply mode

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Summary

Introduction

Energy is necessary for the production and operation of modern society, which is the important material basis for human survival and important driving force for the development of human society as well as economy [1,2]. On the basis of LCOE technique, this paper proposes an optimal selection approach regarding power supply modes for rural electrification, which can achieve comparative analysis on economic cost of different power supply modes (namely power grid extension mode and micro-grid mode) and determine the most economical power supply mode It can provide references for the reasonable construction of power supply project in remote and less developed regions and effective implementation of electric universal service policy in China. Another type of power load is small factory-related electrical load, such as the electrical load of individual workshops and food processing plants operated by residents For this kind of power load, the electric energy needs to be stepped down by 10 kV/380 V distribution transformer and conveyed through three-phase 380 V low-voltage transmission line. When the rural electrification is realized by power grid extension mode, tchoerpdorisattriioFbFniiugg.tuuiroreen33..lSiSnccheheemmanaatdtiicc dddiiiaasggtrrriaabmmutooifof rrnuurratarllaeenlleesccfttorrirififmiccaeattriioonanrbbeyytntaaekkeiindnggedppoowtwoeerrcggorrniiddsteerxxuttecentnssibiooynnmmeoloeddceet.r.ic power

Micro-Grid Mode
Method
The Basic Theory of LCOE
LCOE Model for Power Grid Extension Mode
Power Generation LCOE
Power Transmission LCOE
Power Distribution LCOE
LCOE of Power Grid Extension Mode
LCOE Model for Micro-Grid Mode
Empirical Analysis
LCOE Accounting of Power Generation
LCOE Accounting of Power Transmission
LCOE Accounting of Power Distribution
LCOE Calculation for Micro-Grid Mode
Findings
The Most Economical Mode Selection
Full Text
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