Exploring Opportunities and Challenges of Solar PV Power under Carbon Peak Scenario in China: A PEST Analysis

Hengtian Wang, Xiaolong Yang, Xinxin Xu and Liu Fei
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Hengtian Wang: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Xiaolong Yang: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Xinxin Xu: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Liu Fei: China Energy Conservation and Environmental Protection Group (CECEP), Beijing 100082, China

Energies, 2021, vol. 14, issue 11, 1-28

Abstract: China has experienced rapid social and economic development in the past 40 years. However, excessive consumption of fossil fuel energy has caused an energy shortage and led to severe environmental pollution. To achieve sustainable development, China is striving to transform its growth mode. Adopting renewable energy (RE) including solar photovoltaic (PV) power is an effective measure. How to promote the further development of solar PV power under the scenario of China’s aspirational target of carbon peak by 2030 and 20% RE ratio in the energy mix remains a theme that need to be addressed. This paper analyzes the potential opportunities and challenges confronting solar PV power in China. The analysis covers the dimensions of political, economic, social, and technological (PEST). The results revealed a significant prospect for the further deployment of solar PV power in the coming decades. The aggressive estimated installed capacity of solar PV power is expected to reach 80+ GW annually. To successfully achieve the goal of 80+ GW, barriers that hinder the further development of solar PV power have to be eliminated. Suggestions for policymakers include maintaining enforceability and continuity of policies, favorable financial supports, mandatory RE quotas for all parties, and supporting fundamental R&D. Suggestions for the solar PV industry include full utilization of integrated applications, set up an after-sales service network, collaborative innovation among the industry chain, and engaging in storage and hydrogen technology. The findings are greatly beneficial for policymakers and the solar PV industry.

Keywords: carbon peak; renewable energy; solar PV power; China; PEST analysis; incentive policy (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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