Open AccessAssessing the regional grid-parity potential of utility-scale photovoltaic in China
Author(s) -
Jingjing Liang,
Xing Gao
Publication year - 2020
Publication title -
iop conference series. earth and environmental science
Language(s) - English
Resource type - Journals
eISSN - 1755-1307
pISSN - 1755-1315
DOI - 10.1088/1755-1315/512/1/012022
Subject(s) - cost of electricity by source , grid parity , capital cost , photovoltaic system , subsidy , environmental economics , grid , business , economics , electricity generation , photovoltaics , engineering , macroeconomics , geography , market economy , electrical engineering , power (physics) , physics , geodesy , quantum mechanics
Chinese government announced to phase out photovoltaic (PV) generation subsidies in following years, which made analysis of economic feasibility of grid-parity crucial. We present an expression of levelized cost of electricity (LCOE) consistent with Chinese situation, which takes comprehensive life cycle cost, region-specific capital cost, and tax effect into consideration. Based on LCOE calculation, we make regional grid-parity estimation by comparing utility-scale PV LCOE to government benchmark price. Results show a constant progress to achieve grid-parity for utility-scale PV in China. By 2030, most regions will achieve grid-parity of large scale PV projects. More than half of the regions will achieve grid-parity before 2022. Policy suggestions are: (1) Policy should be made to improve developers’ access to low-cost financing; (2) To reduce investment cost, favourable mechanisms related to the profit sharing between land owner and developer could be developed. Local government could also support PV by lowering land tax and fees; (3) Government should plan to construct cross-regional transmission line for PV. In this way, northwest power could be transmitted to middle or eastern China and achieve remote grid-parity.