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DPV systems, typically small to medium-sized solar power installations on buildings, which primarily and directly supply electricity to industrial, commercial, or residential consumers in proximity. DPV is an advocated renewable substation for climate change and energy saving for merits of low installation costs, high energy efficiency, and the ability to provide decentralized power supply. Our research has theoretical significance in explaining and understanding the development and policy evolution of DPV in China and provide valuable suggestions for future industry policies during grid parity.
Technical summary
Since 2021, China has been phasing out its decade-long feed-in tariff policies, reducing the photovoltaic industry's dependency on subsidies. Despite the challenges posed by declining electricity prices and slowdown in economic growth, the authorities continue to prioritize the development of DPV due to its low investment costs, high energy efficiency, and decentralized power supply, and these technologies have already achieved demand-side parity. Driven by this phenomenon, this study examines the trajectory of DPV diffusion and the evolution of related policies over the last decade. It unravels the dynamic mechanism of DPV investment through theoretical analysis and develops a macro model to identify optimal installation strategies and renewable energy proportions. Our findings highlight the increasing role of green energy and suggest that green finance is crucial for stimulating DPV investment in the era of grid parity. The study concludes with practical recommendations for overcoming DPV challenges in China.
Social media summary
DPV has become a prominent renewable energy solution in other countries but not in China. We probe the system dynamics modeling to give explanation and solution during grid parity.
This chapter examines three main forms of proto-centralisation in energy governance, namely producer/consumer organisations by reference to the Organization of Petroleum Exporting Countries (OPEC), the International Energy Agency (IEA), the International Energy Forum (IEF) and the Gas Exporting Countries Forum (GECF); promotion organisations, by reference to the International Renewable Energy Agency (IRENA); and regional organisations, by reference to the EU Energy Union, the Latin American Organization on Energy Cooperation (OLADE) and the ASEAN Energy Cooperation framework.
In this pivotal chapter, I examine the 1.5°C emissions pathways urged upon us in the 2018 IPCC SR15 report. I compare those steeply plunging emissions pathways to emissions predictions over the next 30 years made by McKinsey and Bloomberg to demonstrate that the IPCC pathways are unlikely to obtain. To devise what seems a more likely scenario, I utilize the McKinsey/Bloomberg scenarios through 2050 and append to them subsequently the sort of emissions plummet that the IPCC would recommend we commence in 2021. Even in 2050, an emissions nose-dive seems an optimistic scenario but it illustrates a pathway to Net Zero Emissions by 2084. I then translate that emissions pathway into a temperature outcome that shows an increase of roughly 2.7°C above pre-industrial temperatures in the Net Zero year. More importantly, I illustrate that after Net Zero, temperatures and therefore resulting climate damages plateau rather than decline. Worse yet, sea levels would continue to rise for centuries. Having undertaken the enormous sacrifices necessary to achieve Net Zero, I assert that future generations are unlikely to find that state of affairs acceptable. They will demand further action to reduce temperatures and climate damages. They will demand climate intervention.
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