Economic Assessment of the Peer-to-Peer Trading Policy of Distributed PV Electricity: A Case Study in China

Ying Wang, Lidan Tian, Junrong Xia, Weishi Zhang and Kaifeng Zhang
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Ying Wang: Key Laboratory of Measurement and Control of Complex Systems of Engineering, Ministry of Education, Southeast University, Nanjing 210096, China
Lidan Tian: Key Laboratory of Measurement and Control of Complex Systems of Engineering, Ministry of Education, Southeast University, Nanjing 210096, China
Junrong Xia: China Electric Power Research Institute, Nanjing 210003, China
Weishi Zhang: School of Geographic and Environmental Sciences, Tianjin Normal University, Tianjin 300387, China
Kaifeng Zhang: Key Laboratory of Measurement and Control of Complex Systems of Engineering, Ministry of Education, Southeast University, Nanjing 210096, China

Sustainability, 2020, vol. 12, issue 13, 1-22

Abstract: China’s government launched a policy in October 2017 to permit the distributed generators to peer-to-peer trade their electricity generation on the market. Several clauses in the policy document are, however, unclear and ambiguous. This work identifies three vital but not clearly detailed issues in the policy document: (1) participation eligibility, (2) the grid fee calculation method, and (3) subsidy rates. Then, we carry out a comprehensive analysis of the economic impacts of the trade policy based on a case study of an eastern city in China. Sensitivity analyses on the impacts of the subsidy rates, transmission and distribution prices (TDPs), and end-user regulated prices are conducted. The results show that the trading policy will benefit the photovoltaic (PV) generators with more revenue by 6–11%, reduce the cost for end-users by 6–12%, and decrease the revenue of the power grid company by 32–55%.

Keywords: distributed PV; trade policy; grid fee; PV subsidy (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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