Low or No subsidy? Proposing a regional power grid based wind power feed-in tariff benchmark price mechanism in China

Zhang, R; Shimada, K; Ni, M; Shen, GQP; Wong, JKW

Low or No subsidy? Proposing a regional power grid based wind power feed-in tariff benchmark price mechanism in China

Zhang, R Shimada, K Ni, M Shen, GQP Wong, JKW

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Energy Policy, 2020, 146, pp. 111758-111758
Issue Date:: 2020-11-01

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Field	Value	Language
dc.contributor.author	Zhang, R
dc.contributor.author	Shimada, K
dc.contributor.author	Ni, M
dc.contributor.author	Shen, GQP
dc.contributor.author	Wong, JKW
dc.date.accessioned	2021-01-03T23:48:26Z
dc.date.available	2021-01-03T23:48:26Z
dc.date.issued	2020-11-01
dc.identifier.citation	Energy Policy, 2020, 146, pp. 111758-111758
dc.identifier.issn	0301-4215
dc.identifier.uri	http://hdl.handle.net/10453/145053
dc.description.abstract	© 2020 Elsevier Ltd The Chinese government plans to adopt a low or no subsidy policy mechanism on renewable energy power development in the future. To achieve a balance between reducing financial burden on the government and ensuring profitability of investors as well as to account for the regional differences in China, a novel regional wind power grid feed-in tariff benchmark price mechanism by Net Present Value (NPV) method and Real Option (RO) method is proposed in this paper. The results voice support on the appropriateness of gradually decreasing the wind feed-in tariff (FIT) benchmark price to as low as the coal-fired FIT. The proposed FIT price level is presented as a price range on the basis of a guaranteed Internal Rate of Return (IRR) falls in between 8% to 15% for wind power investors. The results indicate that the current FIT price should be readjusted and redistributed. Although the FIT price in Central and South China grids is recommended to be relatively high, the NPV of wind farm project value in six regional grids are at the same level.
dc.language	en
dc.publisher	Elsevier BV
dc.relation.ispartof	Energy Policy
dc.relation.isbasedon	10.1016/j.enpol.2020.111758
dc.rights	info:eu-repo/semantics/restrictedAccess
dc.subject.classification	Energy
dc.title	Low or No subsidy? Proposing a regional power grid based wind power feed-in tariff benchmark price mechanism in China
dc.type	Journal Article
utslib.citation.volume	146
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building
pubs.organisational-group	/University of Technology Sydney/Faculty of Design, Architecture and Building/School of Built Environment
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
dc.date.updated	2021-01-03T23:46:08Z
pubs.publication-status	Published
pubs.volume	146

Abstract:

© 2020 Elsevier Ltd The Chinese government plans to adopt a low or no subsidy policy mechanism on renewable energy power development in the future. To achieve a balance between reducing financial burden on the government and ensuring profitability of investors as well as to account for the regional differences in China, a novel regional wind power grid feed-in tariff benchmark price mechanism by Net Present Value (NPV) method and Real Option (RO) method is proposed in this paper. The results voice support on the appropriateness of gradually decreasing the wind feed-in tariff (FIT) benchmark price to as low as the coal-fired FIT. The proposed FIT price level is presented as a price range on the basis of a guaranteed Internal Rate of Return (IRR) falls in between 8% to 15% for wind power investors. The results indicate that the current FIT price should be readjusted and redistributed. Although the FIT price in Central and South China grids is recommended to be relatively high, the NPV of wind farm project value in six regional grids are at the same level.

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http://hdl.handle.net/10453/145053