Impact of grid connection cost channeling mechanisms on the development of distributed photovoltaic: The case of China

Yuan Lyu, Yongxiu He, Shanzi Li, Jinghan Zhou and Bo Li

Energy Policy, 2024, vol. 187, issue C

Abstract: China’s current distributed photovoltaic grid connection cost channeling approach reduces the economic benefits of grid enterprises and brings unfairness among users. How to put forward appropriate distributed photovoltaic connection cost channeling methods according to the resource endowment and renewable energy consumption in different regions, achieving the promotion of distributed photovoltaic consumption while alleviating as much as possible the negative impacts of distributed photovoltaic connection on the grid and users are the aims of this paper. This paper firstly analyzes the cost composition of distributed photovoltaic grid connection in China as well as the channeling methods, and puts forward alternative channeling schemes; then it constructs a four-way evolutionary game model for roof providers, grid enterprises, photovoltaic enterprises, and the government under different channeling methods; at the same time, it also combines regional resource endowment, photovoltaic penetration rate, and other factors to construct a distributed photovoltaic grid-connection cost cross-subsidization indicator to categorize the regions, selects Hebei, Shanghai, and Guizhou for simulation in conjunction with the categorization results, at the same time, the impacts of grid costs, distributed photovoltaic costs, and other factors on the evolutionary results are took into account.

Keywords: DPV connection cost; Cost channeling mechanism; Evolution game model; Connection fees; Transmission and distribution tariff (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:187:y:2024:i:c:s0301421524000612

DOI: 10.1016/j.enpol.2024.114041

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