Study on the Incentives Mechanism for the Development of Distributed Photovoltaic Systems from a Long-Term Perspective

Chenjun Sun, Zengqiang Mi, Hui Ren, Fei Wang, Jing Chen, David Watts and Jinling Lu
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Chenjun Sun: School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
Zengqiang Mi: School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
Hui Ren: School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
Fei Wang: School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
Jing Chen: School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China
David Watts: Department of Electrical Engineering, Pontificia Universidad Católica de Chile, Santiago 7820436, Chile
Jinling Lu: School of Electrical & Electronic Engineering, North China Electric Power University, Baoding 071003, China

Energies, 2018, vol. 11, issue 5, 1-18

Abstract: Sharing the benefits of distribution systems from the integration of distributed photovoltaic systems (DGPVs) with investors is vital to the coordinated development of DGPVs and active distribution systems (ADN). The investment and development of DGPVs, incentive policies, and the development of distribution system interact, and the interactions vary with the changes in the on-grid capacity of DGPVs. In this paper, an event-driven co-simulation platform is built to simulate the abovementioned interaction among DGPVs, ADN, and incentive policy under a long-term time frame. The platform includes an investment model of DGPV investors and an ADN model with consideration of the growth of the ADN. On this platform, we study how multiple factors, including incentive system, global horizontal radiance (GHR), and cost, affect the investment and integration of DGPVs in the future 10 years. Simulation and analysis showed that investors’ decisions are more sensitive to variation in GHR and cost, followed by variation in tariff system, subsidy, and self-use ratio. Distribution subsidies have certain impact on the development of DGPV and could partially replace the national and provincial capacity and generation subsidies. When the on-grid capacity reaches a certain level, the distribution subsidy reaches a dynamic equilibrium.

Keywords: distributed photovoltaic system (DGPV); incentive mechanism; sensitivity analysis; global horizontal radiance; feed-in tariff; long-term; systems dynamics; GridLAB-D TM simulation software (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: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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