TY - JOUR
T1 - Analysis of feed-in tariff policies for solar photovoltaic in China 2011–2016
AU - Ye, Liang-Cheng
AU - Rodrigues, João F.D.
AU - Lin, Hai Xiang
N1 - Accepted Author Manuscript
PY - 2017/10/1
Y1 - 2017/10/1
N2 - 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.
AB - 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.
KW - Feed-in tariff (FIT)
KW - Internal rate of return (IRR)
KW - Learning curve
KW - Net present value (NPV)
KW - Solar photovoltaic (PV)
KW - System dynamics
UR - http://www.scopus.com/inward/record.url?scp=85021227406&partnerID=8YFLogxK
UR - http://resolver.tudelft.nl/uuid:812ed1f2-59c1-4aba-af7b-2b60bfa452a4
U2 - 10.1016/j.apenergy.2017.06.037
DO - 10.1016/j.apenergy.2017.06.037
M3 - Article
AN - SCOPUS:85021227406
SN - 0306-2619
VL - 203
SP - 496
EP - 505
JO - Applied Energy
JF - Applied Energy
ER -
