Subsidy policies and operational strategies for multiple competing photovoltaic supply chains

Chen, Zhisong; Cheung, Keith C. K.; Qi, Xinyuan

doi:10.1007/s10696-020-09401-8

Cited by 13 publications

(5 citation statements)

References 25 publications

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“…The uncertainty of the investors' decision based on a realistic approach for the case in China is carried out in the study. In [8], the influence of subsidy policies and operational strategies on the photovoltaic supply chains and the overcapacity problems is assessed. Similar to these studies, the assessment of FiT and NM schemes on the grid-connected renewable resources and network conditions is also considered in some articles [9][10][11][12].…”

Section: Literature Reviewmentioning

confidence: 99%

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A bi‐level multistage distribution network expansion planning framework with the cooperation of residential private investors (A case study in Iran)

Ashoornezhad

Falaghi

Hajizadeh

et al. 2023

IET Renewable Power Gen

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In recent years, supporting schemes have been legislated by several governments to encourage private investors in installing renewable energy resources (RER). In such cases, the supportive policies are mainly enacted based on the either investor or distribution companies’ standpoint. In this paper, a distribution network expansion planning (DNEP) framework with the cooperation of residential private investors (RPI) is proposed. Due to the presence of a couple of main participants, the proposed framework is arranged in a bi‐level framework, where the RPI participation is optimized at the upper level, and the system structure is determined at the lower level. In order to assess the profitability of the project from the investors’ attitude, payback period years (PBY) is utilized. Meanwhile, due to the presence of uncertainty resources, fuzzy clustering method (FCM) is developed to catch the intermittency of the problem. The proposed framework is implemented on a real 81 bus distribution test system in Iran. Moreover, the existing scheme in Iran and also a modified plan are investigated to make cost‐effective decisions. Finally, sensitivity analysis is performed to reach a more beneficial result. Obtained results demonstrated how distribution companies can utilize the potential of residential customers in long‐term planning.

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Section: Literature Reviewmentioning

confidence: 99%

“…) as shown in (8). It should be mentioned that a fully yearly data is not required to consider at this level, since the maximum load of the system has the main influence on the status of the system structures.…”

Section: Lower-level Formulationmentioning

confidence: 99%

A bi‐level multistage distribution network expansion planning framework with the cooperation of residential private investors (A case study in Iran)

Ashoornezhad

Falaghi

Hajizadeh

et al. 2023

IET Renewable Power Gen

View full text Add to dashboard Cite

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“…Whereas most previous PV studies have focused on the demand side, only very few studies have focused on the supply side of the PV system. Chen et al [34] investigated the effect of the subsidy reallocation from households to the PV industry using the game theory approach, while Nasirov et al [35] explored the income tax credits for construction companies installing a PV system. The present study models both supply and demand aspects as well as their interactions.…”

Section: Modeling Energy Transitions Of Photovoltaicsmentioning

confidence: 99%

Simulating Socio-Technical Transitions of Photovoltaics Using Empirically Based Hybrid Simulation-Optimization Approach

2022

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Energy transitions as socio-technical processes involves interactions among different actors such as households, firms, and government, thus requiring an integrated approach to explore the transition’s dynamics. The present study aims to simulate the socio-technical transitions of photovoltaics (PV) in Indonesia using an empirically based hybrid simulation-optimization model. The model involves households’ decision-making, PV supply chain, and government interventions. The hybrid simulation-optimization model consists of integer linear programming to optimize PV’s supply chain configuration which was embedded within agent-based modeling and simulation (ABM). The empirical data involving 413 households from 34 provinces in Indonesia was acquired from a survey that was specifically designed based on the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2) to specify and parameterize the model. Export tariff regulation, incentives for PV investment, environmental campaigns, and the combinations of those interventions were evaluated. The findings demonstrate that all of the interventions increase the intention toward PV, but the intention is not necessarily translated into adoption due to either financial or facility constraints. The findings highlight the necessity to include both demand and supply aspects endogenously in the transition model. The export tariffs combined with the incentives, followed by the export tariffs combined with the campaigns, is found to be preferable due to low supply chain unit cost and high reduction of greenhouse gas. Managerial implications and future research are discussed.

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“…Most scholars believed that government subsidies were the main cause of overcapacity (Chen et al, 2021 ; Tang et al, 2021 ). They thought government subsidies distorted enterprises’ investment behavior, resulting in severe overcapacity (Dong, et al, 2021 ).…”

Section: Introductionmentioning

confidence: 99%

Can the cancellation of government subsidies alleviate the phenomenon of overcapacity in the photovoltaic module industry? From a dynamic perspective

Zhang

Zhao

Zhou

2023

Environ Dev Sustain

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The environmental pollution problem stimulates the photovoltaic industry’s vigorous development and further promotes the prosperity of the module manufacturing industry. After the cancellation of government subsidies, how the phenomenon of overcapacity that has always existed in the module manufacturing industry will develop is one of the essential issues that we need to consider. This paper constructs a systematic framework to analyze the driving mechanism of government subsidies on overcapacity. Then, a system dynamics model is established to predict the development trend of overcapacity after the cancellation of government subsidies. The result shows that: (i) By 2030, the production capacity will exceed 600 GW in China’s photovoltaic module industry, which is about two times that of 2021. Moreover, its price and cost will drop to 0.46 yuan/W and 0.41 yuan/W, which are down 67% and 60%, respectively, compared to 2021; (ii) After the cancellation of government subsidies, the phenomenon of overcapacity will not disappear soon, and it will continue until 2030. In 2030, the production capacity utilization rate will reach 80%, and the phenomenon of overcapacity will disappear; (iii) From the perspective of production factors, the impact of the labor factor on the production capacity is minimal. In the initial stage, technology and capital factors are vital. As the industry matures, the influence of the capital factor will gradually weaken. Finally, we have put forward corresponding policy implications.

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Subsidy policies and operational strategies for multiple competing photovoltaic supply chains

Cited by 13 publications

References 25 publications

A bi‐level multistage distribution network expansion planning framework with the cooperation of residential private investors (A case study in Iran)

A bi‐level multistage distribution network expansion planning framework with the cooperation of residential private investors (A case study in Iran)

Simulating Socio-Technical Transitions of Photovoltaics Using Empirically Based Hybrid Simulation-Optimization Approach

Can the cancellation of government subsidies alleviate the phenomenon of overcapacity in the photovoltaic module industry? From a dynamic perspective

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