Financial assessment of government subsidy policy on photovoltaic systems for industrial users: A case study in Taiwan

Chou, Shuo‐Yan; Nguyen, Thi Anh Tuyet; Yu, Tiffany Hui‐Kuang; Phan, Nguyen Ky Phuc

doi:10.1016/j.enpol.2015.09.039

Cited by 21 publications

(6 citation statements)

References 20 publications

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“…Unlike previous studies [24,25], this paper has presented longitudinal studies on the investability of PV systems when subsidies and investment costs descend. It could shed lights on future possible energy policies and returns which may assist prospective investors in identifying a potential PV market and making investment decisions.…”

Section: Discussionmentioning

confidence: 99%

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The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case

Chen

Yang

2021

Energies

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The Taiwanese government has set an energy transition roadmap of 20% renewable energy supply by 2025, including a 20 GW installed PV capacity target, composed of 8 GW rooftop and 12 GW ground-mounted systems. The main trend of feed-in tariffs is downwards, having fallen by 50% over a ten-year period. Predicting the future ten-year equity internal rate of return (IRR) in this study, we examine the investability of PV systems in Taiwan when subsidies and investment costs descend. We have found that the projected subsidies scheme favours investment in small-sized PV systems. Unless the investment costs of medium-sized PV systems fall or subsidies rise over the next decade, investing in medium-sized PV systems will be less attractive. Nonlinear and linear degradation causes slight IRR differences when using higher-reliability modules.

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Section: Discussionmentioning

confidence: 99%

“…In general, previous studies have been done on feed-in tariffs in Taiwan from different viewpoints, including policy [17][18][19][20][21][22], economy [23], financial assessment [24], and investors [25]. The purpose of this paper is to examine the investability of PV systems in Taiwan when subsidies and investment costs descend.…”

Section: Introductionmentioning

confidence: 99%

The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case

Chen

Yang

2021

Energies

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“…For example, maximum power of a solar photovoltaic (PV) energy system is calculated based on solar radiation ( Ip), output power of the module under standard conditions ( P0), temperature coefficient ( αt), ambient temperature ( Ta), irradiance on module plane at nominal operating cell temperature (NOCT) ( IP.NOCT), module operating temperature in NOCT conditions ( TNOCT), ambient temperature in NOCT conditions ( Ta.NOCT), electrical efficiency at PV cell temperature ( ηref), efficiency correction coefficient temperature ( βref), and transmittance of glazing ( τα), as expressed in equation (11). 5,54,55 The maximum power of a wind energy system is calculated based on roughness length ( z0), altitude above se...…”

Section: Proposed Methodologymentioning

confidence: 99%

“…To improve the effectiveness of renewable energy portfolio selection, many studies have focused on developing energy models to explore the relationship between energy and economics. [3][4][5] For example, Chung et al 6 proposed an approach to evaluate the economic feasibility of renewable energy investment and optimize renewable energy system design in microgrid, off-grid, and on-grid cases. The results demonstrated that integrating multiple energy system sources can effectively increase energy system sustainability.…”

Section: Literature Reviewmentioning

confidence: 99%

Fusion of interval-valued neutrosophic sets and financial assessment for optimal renewable energy portfolios with uncertainties

Nguyen

Chou

2021

Energy & Environment

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Renewable energy has been actively researched and developed in many countries to replace the conventional energy resources that come from fossil fuels. As social and environmental awareness of the renewable energy has grown, it is essential to address both quantitative factors and qualitative factors in determination of the optimal renewable energy portfolio. This paper proposes a novel approach to integrate a financial model and a fuzzy model to analyze both quantitative and qualitative factors. The financial model is utilized to calculate the quantitative factors, thereby assisting experts make judgments more accurately in the fuzzy model. The fuzzy model is utilized to evaluate the qualitative factors based on the expert judgements. Moreover, this paper proposes multi-segment judgment model that analyzes the evaluation of different groups, including government, investor and user groups. The results show that each group has different priority order. For example, the highest-priority factor of Government, Investor and User is environmental (with a score of 0.665), economic (with a score of 0.854), and technological criteria (with a score of 0.771), respectively. The results also indicated that small-scale onshore wind energy, large-scale onshore wind energy and solar energy is the best option for Government, Investor and User, respectively.

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“…Subsidy policies have been extensively implemented to promote new energy development [24,25]. The government will face a trade-off in this type of project: achieving maximum social benefit subsidies while minimizing the total subsidy.…”

Section: Introductionmentioning

confidence: 99%

Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power

Wang

Liu

et al. 2017

Sustainability

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Abstract:The increasing development of combined heat and power (CHP) plants is exacerbating the wind power curtailment problem in regional power grids during the winter heating season. Electric boilers (EBs) were proposed to be employed within CHP plants to relieve this problem. However, CHP plants usually have no incentive for investing in EBs. Therefore, CHP plants must be incentivized to make such investments through appropriate compensation from beneficiaries, i.e., government and wind farms, although this has not previously been discussed. We propose a game theory model to simulate the impact of government subsidies on EB investment. We analyzed the utilization of the involved parties with the marginal cost and average cost and applied game theory to simulate the investment decisions. Then, an approximate enumeration technique was developed to identify the optimum government subsidy. An actual case of a regional power grid in northern China was investigated to validate the proposed method. A minimum government subsidy to maximize total social benefit was calculated; this subsidy can incentivize wind farms and CHP plants to invest in and use EBs.

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Financial assessment of government subsidy policy on photovoltaic systems for industrial users: A case study in Taiwan

Cited by 21 publications

References 20 publications

The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case

The Investability of PV Systems under Descending Feed-In Tariffs: Taiwan Case

Fusion of interval-valued neutrosophic sets and financial assessment for optimal renewable energy portfolios with uncertainties

Optimum Subsidy to Promote Electric Boiler Investment to Accommodate Wind Power

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