Socially optimal deployment strategy and incentive policy for solar photovoltaic community microgrid: A case of China

Chen, Weidong; Wei, Pengbang

doi:10.1016/j.enpol.2018.01.056

Cited by 26 publications

(15 citation statements)

References 35 publications

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“…This has boosted the usage of such energy with respect to other renewable energies due to new competitive prices. The growth of installed power of global PV energy increases between 20-25% every year [28][29][30][31].…”

Section: Photovoltaic Energy Generatorsmentioning

confidence: 99%

Autonomous Photovoltaic LED Urban Street Lighting: Technical, Economic, and Social Viability Analysis Based on a Case Study

Orejón-Sánchez¹,

Díaz²,

Calderón³

2021

Sustainability

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This paper analyzes the technical and economic viability and sustainability of urban street lighting installation projects using equipment powered by photovoltaic (PV) energy. First, a description of the state-of-the-art of the technology is performed, studying the components involved in solar LED luminaires for street lighting application and examples of autonomous PV systems installed in different countries. Later, a case study a based on a renovation project of the street lighting installation at a 5000-inhabitant municipality in Lanzarote (Spain) is presented. Two alternatives are analyzed: underground channeling of the previous aerial electrical grid and the installation of LED luminaires, and, on the other hand, the installation of autonomous LED solar luminaires. Simulations concluded that a PV lighting installation proposal guarantees the existing M3 lighting requirements (EN 13201-2:2015) and represents a saving in the material execution budget of 43.78% with respect to the channeled power grid option. Finally, a statistical study has been carried out to assess the social acceptance of Spanish citizens of this autonomous PV technology in urban environments. This considers strengths and weakness of the technology: sustainability, robustness, visual impact, or risk of vandalism. In general, most subjects of all age segments are aware of the problem that means having aerial wiring running at facades (95%) and considers the use of PV in urban lighting sustainable (88%). However, 47% of those surveyed consider that shutdowns due to lack of energy harvesting is problematic and 17% consider this very problematic. This major drawback (visual impact of PV equipment is mostly evaluated as neutral) gives rise to social reluctance, especially in people younger than 50 who remarked this as more problematic than senior segments. Thus, guaranteed operational service is fundamental to have social agreement for PV technology implementation.

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Section: Photovoltaic Energy Generatorsmentioning

confidence: 99%

Autonomous Photovoltaic LED Urban Street Lighting: Technical, Economic, and Social Viability Analysis Based on a Case Study

Orejón-Sánchez¹,

Díaz²,

Calderón³

2021

Sustainability

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“…This type of subsidy proved to be essential to make the system financially effective and the considered technologies viable. In [38] a leader-follower Stackelberg game approach was used to investigate the effects FiT and emission trading policies on the investment decision of a solar photovoltaic-powered community microgrid (SPCM). The case study focused on China and demonstrated that in some specific cases governmental policies such as FiT and certified emission reductions may induce the development of SPMC.…”

Section: Literature Reviewmentioning

confidence: 99%

The Effects of Capital and Energy Subsidies on the Optimal Design of Microgrid Systems

2020

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Microgrids constitute an attractive solution for the electrification of areas where grid extension is not technically feasible or prohibitively expensive. In recent years, national governments have implemented various support policies to encourage the deployment of renewable energy systems (RES) and microgrid hybrid-powered systems. A fundamental aspect during the design and disposition of these types of units is the determination of the optimal configuration and sizing of each power generation component. Furthermore, the optimal design of microgrids is strongly dependent on technological parameters, local meteorological conditions, among other factors. In this context, this paper investigates the effects of different policy measures on the optimal configuration of microgrids functioning in islanded mode. A computable model is employed to carry out a set of sensitivity analyses and assess the impact of capital and fuel subsidies on the levelized cost of electricity of various systems. The model employed for this study minimizes the total life cycle costs (TLCC) over the 20-year lifetime of the microgrid project. Besides, as meteorological conditions are crucial parameters to consider while designing microgrids, a sensitivity analysis is conducted to examine the effect of wind speed and solar irradiation on the capacities of each distributed generation units. Our results indicate that capital subsidies, as well as fuel price variations, have a substantial effect on the final design of microgrid systems for rural electrification.

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“…Haghi et al [27] analyzed the effects of a feed-in tariff (FIT) and capital grants on hydrogen production in a microgrid and found that it is more cost-efficient for a government to incentivize hydrogen production with grid electricity than with wind power, while hub operators prefer incentives for wind power. Chen et al [28] investigated the impact of certified emission reductions on the deployment of solar photovoltaic community microgrids and verified that certified emission reductions can turn some unprofitable areas of deploying microgrids into profitable areas. Lo Prete et al [29] used cooperative game theory to explore the optimal regulated electricity price for formulating microgrid cooperation among market players in a small electricity network.…”

Section: Literature Reviewmentioning

confidence: 99%

“…We substituted Equations (27) and (28) into Equation (29) and took the derivative of Equation (29) with respect to e. The optimal subsidy rate can be found at ∂W I /∂e = 0 since there is ∂ 2 W I /∂e 2 < 0:…”

Section: Analysis Of Government Interventionmentioning

confidence: 99%

The Impact of Government Subsidy on Renewable Microgrid Investment Considering Double Externalities

Yong

2019

Sustainability

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Since microgrids require public support to make economic sense, governments regularly subsidize renewable microgrids to increase their renewable energy market penetration. In this study, we investigated the optimal subsidy level for governments to correct the market failure of microgrids and analyzed the impacts of regulation on the interaction between a microgrid and a distribution network operator (DNO). Specifically, we proposed economic rationales for government subsidies for microgrids regarding public interest benefits in relation to double externalities (learning spillover effect and environmental externality). We incorporated the double externalities into a three-echelon game model in an electricity supply chain with one regulator, one microgrid, and one DNO, in which the regulator decides the subsidy level to achieve maximal social welfare. We found that the double externalities and double marginalization caused underinvestment in microgrid capacity in the scenario without government intervention. The government could choose the appropriate subsidy level to achieve the system optimum, which led to a triple win for the microgrid, the DNO, and the social planner. Our analytical results also showed that the microgrid gained more benefits from regulation than the DNO. The microgrid may offer a negative wholesale price to the DNO in exchange for more opportunities to import electricity into the grid, especially when the investment cost is sufficiently low. Our study suggests that supporting microgrids requires a subsidy phase-out mechanism and alternative market-oriented policies with the development of the microgrid industry.The smart energy management system and storage devices enable microgrids to manage intermittent renewable energy and realize real-time power balancing within the system.Microgrids can provide cooling, heating, and electricity at the same time (e.g., the combined cooling, heating, and power, CCHP, system), which satisfies multidimensional service requirements [1].Since microgrids can operate either grid-connected or islanded, they are more flexible, controllable, and reliable than distributed generation systems [2]. This helps to reduce the effects of major power disruption events and buffer the impact of intermittent renewable energy generation on power grids, which increases the opportunities for microgrids to access the power network.Microgrids can provide differentiated services for sensitive users who may require higher power quality and a more resilient energy system (e.g., hospitals and data centers) [3].The market practice of combining battery swap stations for electric vehicles and microgrids provides a possible channel to efficiently shift the peak electricity load [4].China realized that its energy structure heavily relied on thermal power for its rapid economic growth, which limited high-quality development and green innovation in Chinese industry. China is devoted to supporting the efficient utilization of renewable energy and making efforts to deepen power system reform. The...

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Socially optimal deployment strategy and incentive policy for solar photovoltaic community microgrid: A case of China

Cited by 26 publications

References 35 publications

Autonomous Photovoltaic LED Urban Street Lighting: Technical, Economic, and Social Viability Analysis Based on a Case Study

Autonomous Photovoltaic LED Urban Street Lighting: Technical, Economic, and Social Viability Analysis Based on a Case Study

The Effects of Capital and Energy Subsidies on the Optimal Design of Microgrid Systems

The Impact of Government Subsidy on Renewable Microgrid Investment Considering Double Externalities

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