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Today, photovoltaic (PV) power generation accounts for a relatively small proportion of total power generation in China. If photovoltaic power can achieve grid parity, it can replace the original traditional thermal power generation, which has positive significance on the environment. The Levelized Cost of Energy (LCOE) is the main general economic indicator for the evaluation of power generation technology in the world. Based on the traditional LCOE evaluation model and considering the shortcomings of the previous LCOE evaluation models, the cost of photovoltaic power generation is refined in this paper. The cost of the taxation with calculating the depreciation, the loss, and the income of the Clean Development Mechanism (CDM) are taken into consideration. Hence, a more accurate and more comprehensive LCOE model is presented. Moreover, combined with other investment indicators, a photovoltaic power generation benefit model corresponding to the current development status is proposed. Taking a 3-MW distributed photovoltaic power station project in Nanjing as a case study, the sensitivity analysis of factors that affect the benefit of photovoltaic power generation is carried out to further explore the feasibility of photovoltaic power to grid parity.

Study on Feasibility of Photovoltaic Power to Grid Parity in China Based on LCOE