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. The electricity price cannot reflect scale of product/service and market supply and demand .
Finally, the PV systems in different regions in China are expected to achieve grid parity between 2020 and 2032. In other words, within the next decade, grid parity of solar PV systems in China is forecasted to be achieved.
China's power industry mainly relies on the consumption of coal. With the intensification of China's environment problems and rapid economic development, the retail electricity price will increase continuously. According to the previous studies and historical retail electricity price, the interval of price adjustment is 3 years .
Daglish et al. (2021) studied the influence of electricity marketization reform on the future development trend of China’s on-grid price from the perspective of supply and demand. Moreover, the majority of scholars have addressed challenges within the PV industry through the application of econometrics and game theory methodologies.
At least 20 of China’s 35 provinces and regions have adopted electricity rate regimes that reduce prices in the middle of the day and raise them in peak morning and evening hours, according to trade publication International Energy Network.
Although not all the PV projects are included in our dataset, the electricity generation of the projects in this dataset reaches 351.19 GWh, accounting for 53.1% of the total PV electricity generation in China; the installed capacity of these projects is 26.14 GW p, accounting for 33.8% of the total PV installed capacity in China.
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