Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016

Ye, Liang-Cheng; Dias Rodrigues, J.F.; Lin, H.X.

doi:10.1016/j.apenergy.2017.06.037

Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016

Title

Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016

Author

Ye, Liang-Cheng (Universiteit Leiden)
Dias Rodrigues, J.F. (Universiteit Leiden)
Lin, H.X. (TU Delft Mathematical Physics; Universiteit Leiden)

Date

2017-10-01

Abstract

In 2011 China initiated policies to promote the adoption of solar photovoltaic (PV) using feed-in tariff (FIT) policies. Since then the PV domestic market expanded substantially. In the past six years, the FIT policies were updated (adjustment of tariff levels, division of three FIT regions, setting of installation quotas) to address emerging problems such as PV waste, explosive installation, unbalanced spatial distribution. This paper aims to investigate the historical development and implementation of FIT policies in China from 2011 to 2016. The tools of net present value (NPV)/internal rate of return (IRR), learning curve and the system dynamics are employed to show the degree of economic incentives of FIT policies, to understand the learning rate of centralized PV systems, and to study the dynamic mechanism of the FIT system. We conclude that in the near term the tariff levels should be adjusted more frequently to keep IRR values in the range of 8–12%, and a tight quota combined with the deployment of ultra-high voltage (UHV) lines should be continued for the provinces with severe PV waste.

Subject

Feed-in tariff (FIT)
Internal rate of return (IRR)
Learning curve
Net present value (NPV)
Solar photovoltaic (PV)
System dynamics

To reference this document use:

http://resolver.tudelft.nl/uuid:812ed1f2-59c1-4aba-af7b-2b60bfa452a4

DOI

https://doi.org/10.1016/j.apenergy.2017.06.037

Embargo date

2019-06-23

ISSN

0306-2619

Source

Applied Energy, 203, 496-505