Electricity Subsidies Research Articles

Grid parity analysis of photovoltaic systems considering feed-in tariff and renewable energy certificate schemes in Hong Kong

The Hong Kong government has actively promoted the development of renewable energy with two local utility companies to achieve its renewable energy target. Accordingly, two crucial initiatives, the feed-in tariff (FiT) and renewable energy certificate (REC) schemes, have been launched to boost the installation of renewable energy systems, particularly photovoltaic (PV) systems. However, the efficiency and effectiveness of these schemes on grid parity achievement have not been investigated from the perspectives of different stakeholders. To fill this research gap, this study adopts the levelized cost of electricity (LCOE) models to evaluate the role of FiT and REC schemes on realising the grid parity from the residential PV installers' and utility companies’ perspectives, respectively. As a supplementary indicator, the levelized profit of electricity (LPOE) is applied to investigate the economic profitability. The superiority of this study is to expand a general LCOE model into context-specific LCOE and LPOE models considering different grid parity judgement standards from the two sectors. Through a comprehensive analysis, it is indicated that for residential PV installers, the achievement of grid parity is affected by the government electricity subsidy scheme, the trend of PV system capital cost as well as which utility companies they subscribe. For utility companies, the REC price is found sufficient to compensate the lifetime expenditures on large-scale PV systems. Sensitivity analysis indicates that unit capital cost and annual solar power generation are the most critical factors to reduce LCOE in order to achieve earlier grid parity years.

Predicting the Potential of China’s Geothermal Energy in Industrial Development and Carbon Emission Reduction

The goal of carbon peaking and carbon neutrality requires major systemic changes in the energy supply sector. As one of the major non-carbon-based energy sources, geothermal energy is characterized by large reserves, stability, and reliability. This paper summarizes the current situation of geothermal resource endowment and industrial development in China. Based on this, a system dynamics model of geothermal industrialization is established, and the potential of geothermal industrialization and carbon emission reduction in China is predicted. The prediction results show that the growth rate of geothermal heating and cooling areas in the next 40 years will follow a trend of acceleration followed by deceleration. China’s geothermal energy heating and cooling area will reach 11.32–14.68 billion m2 by 2060, an increase of about 9–12 times compared to 2020. The proportion of geothermal heating and cooling area to the total building area in China will reach 13.77–17.85%. The installed capacity of geothermal power generation will reach 14,452.80–20,963.20 MW by 2060 under the scenario with electricity subsidies. The proportion of geothermal energy in China’s primary energy consumption structure will reach 3.67–5.64%. The annual carbon emission reduction potential of the geothermal industry will reach 436–632 million tons, equivalent to 4.41–6.39% of China’s carbon emissions in 2020. The results of this study can provide a reference for the healthy and high-quality development of China’s geothermal industry and help to achieve carbon peaking and carbon neutrality goals.

Resilient clean cooking: Maintaining household clean cooking in Ecuador during the COVID-19 pandemic

Decades of government subsidies for LPG and electricity have facilitated near-universal clean cooking access and use in Ecuador, placing the nation ahead of most other peer low- and middle-income countries. The widespread socio-economic impacts of the COVID-19 pandemic has threatened the resilience of clean cooking systems globally, including by altering households' ability to purchase clean fuels and policymakers' considerations about continuing subsidy programs. As such, assessing the resilience of clean cooking in Ecuador during the pandemic can offer important lessons for the international community, especially other countries looking to ensure resilient transitions to clean cooking. We study household energy use patterns using interviews, newspaper reports, government data on household electricity and LPG consumption, and household surveys [N = 200 across two rounds]. The LPG and electricity distribution systems experienced occasional disruptions to cylinder refill delivery and meter reading processes, respectively, which were associated with pandemic-related mobility restrictions. However, for the most part, supply and distribution activities by private and public companies continued without fundamental change. Survey participants reported increases in unemployment and reductions in household income as well as increased use of polluting biomass as a secondary fuel. Ecuador's LPG and electricity distribution systems were resilient throughout the pandemic, with only minimal interruption of the widespread provision of low-cost clean cooking fuels. Our findings inform the global audience concerned about the resilience of clean household energy use on the potential for clean fuel subsidies to facilitate continued clean cooking even during the COVID-19 pandemic.

Examining the effectiveness of policies for developing battery swapping service industry

The transition to electric vehicles such as electric motorcycles is being encouraged by the government worldwide to improve energy saving and reduce greenhouse gas emissions. Nonetheless, several technical challenges – price, range and charging time – have​ hindered electric motorcycle adoption. Battery swapping is an alternative to overcome such challenges, allowing users to conveniently change their depleted battery for a fully charged battery at a designated charging station. Notwithstanding the advantages of battery swapping, the battery swapping service industry faces some issues that can make it less profitable—battery standardisation, infrastructure readiness and investment cost. This study explores approaches toward a profitable battery swapping service industry, focusing on examining the effectiveness of policies for developing the battery swapping service industry in the case of Indonesia. To this end, this study combines the policy analysis framework with the system dynamics modelling to analyse the dynamic complexity of the battery swapping service industry. This study reveals that price and infrastructure instruments are crucial in boosting battery swapping adoption, thus making the battery swapping service industry profitable. The subsidy on the battery swapping stations appears as the most effective policy for developing a profitable battery swapping service industry compared to the battery pack standardisation and electricity subsidy policies.

Analyzing the Effects of Governmental Policy and Solar Power on Facilitating Carbon Neutralization in the Context of Energy Transition: A Four-Party Evolutionary Game Study

For achieving carbon neutralization and promoting the coordinated development of solar and coal-fired power generations in the context of energy transition, this paper develops a public–private partnership project including the government, carbon exchange enterprise, solar thermal power plant and a coal-fired thermal power plant. Using the four-party evolutionary game theory method, the evolutionary stable strategies are evaluated. The influence estimate results of key factors show that a higher carbon emission penalty and a green electricity subsidy as well as a lower carbon trading tax rate will be beneficial to the carbon trading market, as well as facilitate carbon neutralization. In most instances, the government and carbon exchange enterprise can hold acceptable participating intention. For relatively suitable reference value ranges, the carbon emission quota sale price range of the solar thermal power plant sold to the carbon exchange enterprise is 5.5~6.0 USD/t, that of the carbon exchange enterprise sold to the coal-fired thermal power plant is 5.0~6.5 USD/t, that of the solar thermal power plant sold to the coal-fired thermal power plant is 5.0~5.5 USD/t, that sold to the coal-fired thermal power plant by outside organizations is 9.0~10.5 USD/t, and the carbon trading tax rate range is 6.0~6.2%.

How Do Street-Level Bureaucrats Drive Successful Environmental Policy Implementation?——Comparative Case Studies Based on Different Policy Implementation Models

How street bureaucrats as policy implementers comply with policies to achieve policy goals and maintain grassroots stability is a hot issue of concern in the field of public policy. Based on a two-dimensional analytical framework of goal congruence and interest conformity, we explore the typological differences in policy implementation among grassroots street-level bureaucrats. Through a multi-case analysis of policy implementation in the environmental protection policy area of town A, we find that there are differences in the policy compliance behaviors of local street-level bureaucrats, specifically in the heterogeneous implementation of environmental protection inspectors, the rigid implementation of burn ban policy, the flexible implementation of natural gas policy, and the successful implementation of electricity subsidy policy. Based on the subject chain of “policy maker-policy implementer-target group”, this paper enriches the research perspective of street-level bureaucrats’ policy implementation.

Review Of Electricity Subsidies In Indonesia 2015-2020

To meet the adequacy of electricity needs and help people's purchasing power, the government through the State Revenue and Expenditure Budget (APBN) provides cheap and affordable electricity services for certain segments of society every year. Electricity subsidies are assistance provided by the government to consumers in the form of electricity tariffs that are lower than their economic tariffs. The difference between the subsidized tariff and the economic tariff is borne by the Government, which is then paid to PT Perusahaan Listrik Negara (PT PLN Persero). This research will review the burden of subsidy spending that must be borne by the government and the journey of electricity subsidy reform on target. In addition, it will also review the role of electricity as an instrument in handling COVID-19 in 2020. Based on data on the realization of electricity subsidy spending for the last 5 years which have been audited (2015-2020), it can be seen that starting in 2015 there was a decline in spending as policy reforms began. more targeted electricity subsidies. However, since 2018 electricity subsidies have again increased due to one of the reasons for the increase in the cost of providing electricity (BPP) of electricity in FY 2018 compared to FY 2017 and a significant increase in the number of 450 VA customers. In 2020, an increase in electricity subsidies also occurred due to the electricity discount policy for certain groups of people and business entities as part of handling the impact of COVID-19.

Kenaikan Harga Minyak Dunia dan Implikasinya Terhadap Perekonomian Indonesia di Masa Pandemi Covid-19

At the beginning of 2020, the world was shaken by a health crisis due to the spread of the covid-19 virus. This not only has an impact on health, but also on the development of the world economy, one of which is Indonesia. Economic developments in the petroleum industry play a crucial role in the Indonesian economy, as a source of income in exports and imports for the state budget as well as a source of energy (especially petroleum) to drive various sectors of life throughout Indonesia. Restricted human movement directly causes a decrease in demand for petroleum. In addition to reducing consumption, Covid-19 has also had an impact on decreasing oil and gas prices and production, including the cessation of upstream activities and a reduction in refinery activities. The recommendations put forward are oil production under the influence of Covid-19 and the profits obtained from selling it. The impact of the increase in world oil prices on the State Budget is the increasing burden of fuel subsidies and electricity subsidies. This will trigger an increase in the budget deficit or in a broader perspective will spur fiscal sustainability.

Carbon Pricing, Clean Electricity Standards, and Clean Electricity Subsidies on the Path to Zero Emissions

Carbon Pricing, Clean Electricity Standards, and Clean Electricity Subsidies on the Path to Zero Emissions

Water-energy-food-environment nexus in action: Global review of precepts and practice

Abstract Using water-energy-food-environment (WEFE) nexus as the prism, this review explores evolution of groundwater governance in Iran, Saudi Arabia, Mexico, China, Bangladesh and India – which together account for two-thirds of the global groundwater-irrigated area. Global discourse has blamed widespread water scarcity squarely on supply-side policymaking and advocated a broader template of water governance instruments. Integrated Water Resources Management (IWRM) presented just such a template – with pricing, participation, rights and entitlements, laws, regulations, and river basin organizations – as additional water governance tools. However, the IWRM template faced disillusionment and pushback in many emerging economies. WEFE nexus, the new paradigm, prioritizes system-level optima over sectoral maxima by harnessing synergies and optimizing trade-offs between food, water, energy, soil, and eco-system sustainability within planetary boundaries. Realizing this vision presents a complex challenge in groundwater governance. Global groundwater economy comprises three sub-economies: (a) diesel-powered unregulated, as in Nepal terai, eastern India, Bangladesh, Pakistan Punjab and Sind, and much of Sub-Saharan Africa, where use-specific energy subsidies are impractical; (b) electricity-powered regulated, as in North America and Europe, where tubewells are authorized, metered and subject to consumption-linked energy charges; and (c) electricity-powered unregulated, as in geographies covered by our review – barring China, Bengal and Bangladesh – where unmeasured electricity subsidies have created a bloated groundwater economy. This last sub-economy represents the heartland of global groundwater malgovernance, least equipped to meet the sustainability challenge. It has an estimated 300 million horsepower of grid-connected electric pumps that are either unauthorized and/or unmetered and/or use free or heavily subsidized or pilfered power for irrigating 50–52 million hectares, nearly half of global groundwater-irrigated area. In (a) and (b), groundwater scarcity inspires water-energy saving behavior via increased energy cost of pumping. In sub-economy (c), users are immune to energy costs and impervious to groundwater depletion. Here, the WEFE nexus has remained blind to the irrigation realpolitik that catalyzes or constrains policy action. We explore why the political costs of rationalizing subsidies are prohibitive and exemplify how a smart transition from fossil to solar energy for pumping may offer an opportunity to turn the perverse WEFE nexus into a virtuous one.

Analyzing the effects of government policy and solar photovoltaic hydrogen production on promoting CO2 capture and utilization by using evolutionary game analysis

This study aims at proposing a public-private partnership project including the government (GOVT), coal-fired power plant (CTPP) and solar photovoltaic power plant (PVPP) toward carbon emission reduction and neutralization in China. The project is formed using the CO2 capture and utilization (CCU) and solar PV hydrogen production technologies. When all the participators cooperate, the influence of typical factors on the project is evaluated using the evolutionary game theory method. The results show that increasing the CCU subsidy can strengthen the participating intention of the CTPP but will reduce that of the GOVT. Improving the green electricity subsidy can strengthen the participating intention of the PVPP but will decrease that of the GOVT. To ensure the smooth running of the project, a relatively higher carbon emission penalty and a higher sales price of methanol should be ensured, the PVPP should control its daily working hours appropriately, and the proportion of electricity quantity of the PVPP used for hydrogen production should be increased. In this study, the suggested ranges of CCU and green electricity subsidy coefficients are 0.03–0.05 $/kWh and 0.0035–0.0045 $/kWh, the carbon emission penalty coefficient should be greater than 11 $/t, and the suggested range of daily working hours of the PVPP is 7–8 h.

Peran Pemerintahan Nagari dalam Proses Pelaksanaan Subsidi Listrik Tepat Sasaran (SLTS) di Nagari Kasang Kecamatan Batang Anai Kabupaten Padang Pariaman

This article aims to describe the role of the Nagari Government in the Implementation of Targeted Electricity Subsidies (SLTS) in Nagari Kasang, Batang Anai District, Padang Pariaman Regency. This study used qualitative research method. Data were obtained from informants through observation, interviews and documentation studies. The validity of the data was tested by means of triangulation of sources. The findings of this study indicate that the Nagari Government has a role in the distribution process of the Targeted Electricity Subsidy (SLTS) in Nagari Kasang. This role can be seen from the process of collecting data on residents who are entitled to receive subsidies, to receiving citizen complaints regarding electricity subsidies. The researcher's findings also show that in the process of implementing the Targeted Electricity Subsidy (SLTS), there are still several obstacles. These obstacles include the lack of socialization regarding electricity subsidies to the community, the existence of poor people who have not received electricity subsidies because of the rule that subsidies can only be given to residents who have previously received government assistance, there is still discrimination in the provision of electricity subsidies to residents, until there is no complaint post for electricity subsidy.

Multi-Criteria Decision Methods for Selecting a Wind Farm Site Using a Geographic Information System (GIS)

Wind energy is an economically, technically, and environmentally attractive option due to its cheapness and availability in different regions. The most important obstacle to developing renewable resources in Iran is subsidies for fossil fuels. The Iranian government has recently decided to reduce subsidies for electricity and fossil fuels, which has led to an increase in the prices of fossil fuels and electricity and makes renewable technologies more attractive to use. This study uses a multi-criteria decision method to identify wind energy potential in Khuzestan province. A GIS is used to determine the wind energy potential in this province. The technical, environmental, and economic criteria, which are a total of 14 layers of information, were examined by considering different values for each and from a Boolean point of view. The results show that, from the economic point of view, Shadegan city has the most potential and, from the technical point of view, Khorramshahr city has the highest amount of electricity production through wind energy. Furthermore, Dasht-e Azadegan city, due to its population, can supply the maximum amount of electricity it needs through wind energy. Among the three 550, 2500, and 8000 kW turbines, the 550 kW turbine has the most potential in the region.

Penerapan Metode Analitycal Hierarchy Process dalam Sistem Pendukung Keputusan Kelayakan Rumah Tangga Penerima Listrik Gratis

One of the government programs includes free electricity connection assistance for underprivileged households through the Targeted Electricity Subsidy (SLTS) program. In implementing the SLTS program, recipients of free electricity must meet several predetermined criteria to qualify as recipients. Every year there are a lot of registrants for RT candidates who receive free electricity in Gorontalo province, so obtaining information takes a long time because accuracy is required in the selection process to determine the eligibility of RT candidates to receive free electricity. The purpose of the study was to apply the AHP method to the decision support system for the eligibility of households receiving free electricity by calculating the value of the priority results of the sub-criteria and the feasibility value. The calculation process is carried out based on the criteria, the results of the priority sub-criteria are obtained where the applicant with a feasibility value = 1 gets a decent status. On the other hand, applicant 2 with a sub-criteria priority of 0.2983 and applicant 3 with a sub-criteria priority of 0.0847 gets an unfeasible status because the value obtained is < 1. So it can be concluded that the AHP method can be used in a decision support system to assist related parties in determining the eligibility of households receiving free electricity

Patterns and influencing factors analysis of electricity consumption in university dormitories based on balance point temperatures

The high energy density of university dormitories deserves attention for its huge energy-saving potential. To investigate the patterns and influencing factors of electricity consumption in university dormitories, this study presents a methodology that combines clustering and covariance method based on balancing point temperatures. The dataset of 1170 dormitories from a university in China's hot summer-warm winter region are analyzed. The main results are as follows. (1) Using the Joinpoint Regression (JPR) method, two balance point temperatures, 20.1 °C and 26.6 °C, that affect electricity consumption trend are identified. (2) Through cluster analysis of 3D data, the dormitories are grouped into three electricity use patterns. The phenomenon of the shift in electricity consumption patterns from the fall semester to the spring semester is discovered. (3) The impact of 8 non-behavioral factors on electricity consumption is investigated through covariance analysis. The results show that gender is the most influential factor in base electricity consumption, while three factors have the greatest impact on cooling electricity consumption: floor, occupancy and room location. (4) Based on the main influential factors of room cooling load, a hot season daily cooling electricity subsidy strategy is proposed to balance the difference in cooling electricity bills for different rooms. This study provides reliable information to support the design of potential electricity saving and management measures for dormitory buildings.

Optimal government policy-making for the electric vehicle adoption using the total cost of ownership under the budget constraint

Purchase subsidy is one of the most applied policies for electric vehicle adoption, which reduces the initial purchasing cost while imposing high expenses on governments. Although the purchasing price of the electric vehicle is higher than that of the fuel one, the lower operational costs of the former may compensate for the difference between vehicles' prices during the ownership period. In this way, governments can further persuade customers to purchase electric vehicles by adopting policies that make more reductions in operational costs, in addition to the purchase subsidy. This study optimizes the government policy-making in an electric-and-fuel automotive (i.e., passenger cars) market through designing a Stackelberg game model under the government budget constraint. Three subsidy scenarios are formulated: I) the purchase subsidy, II) the electricity subsidy, and III) the simultaneous purchase and electricity subsidies. Automotive manufacturers optimize their vehicles' selling prices following optimal government policy-making. A customer choice model is designed based on the total cost of ownership for vehicles with a random mileage and a new customer acceptance level parameter. Results lead to optimal subsidy plans for the government under various budget levels. When the available budget is very low, the electricity subsidy is the dominant policy, except for high customer acceptance levels and low fuel prices. The purchase subsidy is the dominant policy for low customer acceptance levels when low budgets are available. The government should subsidize both purchase and electricity costs in more than 50 % of possible situations concerning various customer acceptance levels and fuel prices. When the government adopts both types of subsidies, more than 70 % of the budget should be assigned to the purchase subsidy in more than 50 % of possible situations.

Shore side electricity subsidy policy efficiency optimization: From the game theory perspective

Shore Side Electricity (SSE) can help reduce emissions in ports effectively. However, the adoption of SSE is hindered by a financial dilemma. This paper aims to propose a Stackelberg game theory model for optimizing the government subsidy scheme considering the interactions among the government, port and ships, in order to maximize the subsidy efficiency calculated by environmental benefit per unit monetary subsidy. The port of Shanghai is selected as the sample. Results show that within the optimized government subsidy structure, the subsidy on ships should be prioritized more than that on the port. Besides, the decision of the government's subsidy on ships is usually consistent with the trend of social welfare evolution. It also indicates that a busier port and ships with longer service time and higher berthing power are more worthwhile to subsidize.

Comparison of groundwater costs calculated with different methods and the effect of electricity subsidy liberalization

In managing groundwater demand, pricing system reform plays an important role; however, changing water price faces political and social resistance for optimal pricing, it is necessary to calculate accurately the cost of water from wells. The present study aimed to calculate the actual cost of water from underground resources for various uses and study the impact of electricity price subsidies liberalization on it. In addition, the impact of choosing engineering economics and accounting methodologies on actual cost outcomes was examined. This study was conducted in Kohgiluyeh and Boyer-Ahmad province, Iran, in 2019 with data obtained from information on the annual budgets of provincial water companies. The results indicated that the actual cost of water for agricultural, drinking, and industrial uses was 1613, 2555, and 4739 Rials/m3, respectively, calculated with engineering economics methods, and 877, 2111, and 2848 Rials/m3, respectively, calculated with accounting methodologies. Furthermore, costs were found to be far different from the current tariffs received for water. Liberalizing electricity price subsidies for agricultural uses and their calculation based on public electricity tariffs increased actual water costs by 63% and could reduce water use by about 21%. Therefore, it is suggested that a policy of gradually reducing electricity subsidies, along with price discrimination among various uses, be considered in order to provide consumers with an opportunity to reform and update water use technologies.

Between insufficiency and efficiency: Unraveling households' electricity usage characteristics of urban and rural Indonesia

Indonesia has committed to achieving Sustainable Development Goal 7, namely to ensure access to affordable, reliable, sustainable, and modern energy for all. The Indonesian government improves electricity access through various programs, from the fast-track program for coal-fired power plants to the electricity subsidy for low-income households. In contrast, energy efficiency has been a crucial problem, given that most power plants work with coal. This study raised the electricity usage issue between insufficiency and efficiency by investigating factors associated with electricity consumption inequality using quantile regression in urban and rural areas. It revealed that most Indonesian households still encountered energy insufficiency. Households vulnerable to falling into the energy poverty category were low-income households characterized by: female-headed households in urban areas, non-educated household heads, renters in urban areas, elderlies, and self-employed in rural areas. On the other hand, energy efficiency may target high-usage households characterized by: urban self-employed, university-level education, and houses 2200 VA power outlet or more. However, only 1 % of households were electricity productive users. Therefore, the government should provide affirmative action by promoting access to affordable energy for energy-poor households while considering sustainable energy for future generations. This condition will mean clean and sustainable energy development must be embedded in the country's energy plan to increase the electrification ratio and consumption.

Critical pathways to renewable energy transitions in remote Alaska communities: A comparative analysis

The transition from fossil-fuel based power generation to renewable energy is well underway; however, this transition is highly uneven and not all regions and communities are engaging equally. The circumpolar north is one region where disparities in the uptake of community renewable energy (CRE) projects is evident. Many Northern, remote communities are not connected to national electricity grids and as a result, rely heavily on imported and expensive fuels for power generation. However, within this context, there are places in the US state of Alaska that have forged a leading path toward CRE. This paper investigates why some remote communities develop renewable energy projects while others do not. Using Qualitative Comparative Analysis (QCA), we compare 24 remote communities in Alaska to identify the combination of explanatory factors that can lead to CRE. We first identified 37 potential conditions, from which we drew three primary explanatory factors: community capacity, electricity subsidies, and pooled resources. Results show the absence of large electricity subsidies is a necessary condition to the development of CRE. It also shows that the presence of subsidies (above a state-wide program) stymies transitions. We also found that particular combinations of the absence of large subsidies, community capacity, and working collaboratively to pool resources across communities, were found to be key explanatory variables in the establishment of CRE. These findings may have implications for other communities both in the Circumpolar North and elsewhere, clarifying the conditions that support CRE development.