Will off-grid PV systems reach grid parity in China?
The capacity of off-grid systems are 5–10 kW, which is determined by local solar radiation. By incorporating a learning curve, we forecast that off-grid PV systems for each of the five cities will reach grid parity over the next several decades. The estimation is used to offer policy recommendations for PV market diffusion in China. 1. Introduction
How can PV power generation improve grid parity in China?
As a result, traditional producers and PV power generation may move towards a fair competitive environment, which is more conducive to grid parity of PV power generation. In addition, China's carbon trading is fully implemented in 2017, covering eight sectors including power sector.
How are grid-connected and off-grid PV systems evaluated?
Grid-connected and off-grid PV systems are examined by techno-economic evaluation. The levelized cost of energy (LCOE) of PV systems is calculated for five regions. The grid parity of PV power generation in China is estimated using learning curves. Grid parity varies across regions based on solar radiation and electricity prices.
How is the grid parity of off-grid PV power generation estimated?
Two growth rates – a high (10%) and low (5%) growth rate – are set to estimate the grid parity of off-grid PV power generation across a range of possible futures. As shown in Fig. 13, the grid parity of off-grid PV power generation in five cities is estimated by the future cost of PV power generation and the retail price. Fig. 13.
How do off-grid PV systems produce more electricity?
The electricity generated by off-grid PV systems comes from the operation of PV modules and diesel generators. Thus, the off-grid system can produce more excess electricity. As shown in Fig. 8, the PV production of five grid-connected systems is more than 40% of the total power generation required by each city.
Is off-grid PV suitable for construction?
Therefore, the off-grid PV system is suitable for construction, including large-sized PV plants. China's electricity market is facing a series of reforms, which may further promote grid parity of PV power generation. The residential electricity price in China is controlled by the government based on cost-plus principle.
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