Publication Type

Journal Article

Version

acceptedVersion

Publication Date

1-2021

Abstract

With the deepening of power market reform, distributed power generation is gaining momentum. This paper tests the distributed photovoltaic (DPV) economy under different business models by taking three provinces to stand for typical resource zones. The Internal return rate (IRR) is used to measure the economy, while the improved levelized cost of electricity (LCOE) is used to model the generation cost. Three business modes, namely pure producer (all generation sold to the grid), prosumer (self-use and the rest sold to the grid), and peer-to-peer trade (P2P, all generation traded via the grid) are studied. Results show that peer-to-peer trade is more profitable and is a win-win solution to both DPV owner and electricity consumers. However, peer-to-peer trade is possible only when power grid's role is properly defined in China's power sector reform. Electricity trading mechanism should be improved to facilitate peer-to-peer trade. (C) 2020 Elsevier Ltd. All rights reserved.

Keywords

Distributed photovoltaic, Business model, Prosumer, Peer-to-peer trade

Discipline

Energy Policy | Environmental Sciences | Numerical Analysis and Scientific Computing | Operations and Supply Chain Management

Publication

Journal of Cleaner Production

Volume

280

First Page

1

Last Page

13

ISSN

0959-6526

Identifier

10.1016/j.jclepro.2020.124500

Publisher

Elsevier

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1016/j.jclepro.2020.124500

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