1. Real options analysis for regional investment decisions of household PV-ESS in China.
- Author
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Yang, Changhui, Fu, Yuting, He, Lijun, Jiang, Qi, and Cui, Yangyu
- Subjects
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CARBON offsetting , *INVESTMENT analysis , *ENERGY subsidies , *HOUSEHOLDS , *CARBON emissions , *ELECTRIC power distribution grids - Abstract
This paper takes 30 provinces in China as the research subjects and constructs a real options model to explore the impact of carbon emissions trading market, energy storage subsidies, and their synergy on the optimal investment decision of household PV-ESS projects. The results show that a single factor has a catalytic effect on project investment, and both together have a better effect. And, project investment benefits are better in areas with abundant light resources and higher than average electricity prices. In addition, a sensitivity analysis is conducted on the initial investment cost, CO 2 price, and energy storage subsidies. The results show that immediate investment in all provincial projects can be achieved when the initial investment cost is reduced by 50%, or the CO 2 price is increased by about 33 times, indicating that the current environment is insufficient to attract investors. The results provide a reference framework for investment in household PV-ESS projects. • Use real options methods to assess investment decisions for household PV-ESS projects. • Explore the role of carbon trading market and energy storage subsidies on investment. • Research the impact of different regional power grids on investment value. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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