Levelized cost of electricity (LCOE) of renewable energies and required subsidies in China

Energy Policy

Volumn 70, Issue , 2014, Pages 64-73

  Ouyang, Xiaoling ^b   Lin, Boqiang ^a,b  

^a MINJIANG UNIVERSITY   (China)

^b XIAMEN UNIVERSITY   (China)

Author keywords

Feed in tariffs; Levelized cost of electricity; Renewable energy

Indexed keywords

ELECTRIC POWER GENERATION; ELECTRICITY; EMISSION CONTROL; INVESTMENTS; CARBON; COSTS; SOLAR POWER GENERATION;

CARBON EMISSIONS REDUCTIONS; DEVELOPMENT AND UTILIZATIONS; FEED-IN TARIFF; LARGE-SCALE DEVELOPMENT; LEVELIZED COST OF ELECTRICITIES; RENEWABLE ENERGIES; RENEWABLE POWER GENERATION; SOLAR PHOTOVOLTAIC ENERGIES;

COSTS; COST ESTIMATING;

ALTERNATIVE ENERGY; BIOMASS POWER; ELECTRICITY GENERATION; ELECTRICITY SUPPLY; PHOTOVOLTAIC SYSTEM; RENEWABLE RESOURCE; SOLAR POWER; STRATEGIC APPROACH; SUBSIDY SYSTEM; WIND POWER; INVESTMENT;

CHINA;

EID: 84899910427     PISSN: 03014215     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.enpol.2014.03.030     Document Type: Article

References (58)

1. ACORE, 2011. U.S.-China quarterly market review. Available at: http://www.acore.org/wp-content/uploads/2011/12/ACORE_QMR-fall2011_FNLhipdf%20%5baccessed%205.25.13%5d.
2. Branker K., Pathak M.J.M., Pearce J.M. A review of solar photovoltaic levelized cost of electricity. Renew. Sustain. Energy Rev. 2011, 15:4470-4482.
3. Chen H.H., Lee A.H., Chen S. Strategic policy to select suitable intermediaries for innovation to promote PV solar energy industry in China. Appl. Energy 2014, 115:429-437.
4. China Meteorological Administration, 2009. Detailed survey and evaluation of wind energy resources has made new progress. Available at: (in Chinese) (accessed 25.05.13.). http://www.gov.cn/jrzg/2009-12/31/content_1501282.htm.
5. Chung-Ling Chien J., Lior N. Concentrating solar thermal power as a viable alternative in China[U+05F3]s electricity supply. Energy Policy 2011, 39(12):7622-7636.
6. Congressional Budget Office, 2012. Federal financial support for the development and production of fuels and energy technologies. Available at: (accessed 25.05.13.). http://www.cbo.gov/sites/default/files/cbofiles/attachments/03-06-FuelsandEnergy_Brief.pdf.
7. Couture T., Gagnon Y. An analysis of feed-in tariff remuneration models: implications for renewable energy investment. Energy Policy 2010, 38(2):955-965.
8. CWEA, 2012. China[U+05F3]s installed capacity of wind power in 2012. China Wind Energy Association. China Renewable Energy Society (CRES), Beijing, China.
9. Darling S.B., You F.Q., Veselka T., Velosa A. Assumptions and the levelized cost of energy for photovoltaics. Energy Environ. Sci. 2011, 4:3133-3139.
10. Dinica V. Renewable electricity production costs-a framework to assist policy-makers[U+05F3] decisions on price support. Energy Policy 2011, 39(7):4153-4167.
11. Elliston B., Macgill I., Diesendorf M. Least cost 100% renewable electricity scenarios in the Australian National Electricity Market. Energy Policy 2013, 59:270-282.
12. European Commission, 2008. Commission Staff Working Document, Brussels. Available at: (accessed 25.05.13.). http://ec.europa.eu/energy/climate_actions/doc/2008_res_working_document_en.pdf.
13. Flores N.E., Carson R.T. The relationship between the income elasticities of demand and willingness to pay. J. Environ. Econ. Manag. 1997, 33(3):287-295.
14. Huo M.L., Zhang D.W. Lessons from photovoltaic policies in China for future development. Energy Policy 2012, 51(12):38-45.
15. IEA World Energy Outlook 2011 2011, International Energy Agency, Paris, France.
16. IRENA, 2012a. Renewable power generation costs. Available at: (accessed 25.05.13.). http://www.irena.org/DocumentDownloads/Publications/Renewable_Power_Generation_Costs.pdf.
17. IRENA, 2012b. Renewable energy technologies: cost analysis series-Solar photovolatics. IRENA Working Paper 1 (4/5). Available at: (accessed 25.05.13.). http://www.irena.org/DocumentDownloads/Publications/RE_Technologies_Cost_Analysis-SOLAR_PV.pdf.
18. Jenner S., Groba F., Indvik J. Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries. Energy Policy 2013, 52(1):385-401.
19. Jiang Z.J., Lin B.Q. China[U+05F3]s energy demand and its characteristics in the industrialization and urbanization process. Energy Policy 2012, 49:608-615.
20. Khatib H. Review of OECD study into "Projected costs of generating electricity-2010 Edition". Energy Policy 2010, 38(10):5403-5408.
21. Klein, A., Held, A., Ragwitz, M., Resch, G., Faber, T., 2008. Evaluation of different feed-in tariff design options: best practice paper for the international feed-in cooperation, Fraunhofer ISI, under the National Development and Reform Commission, IEA, 2011. Energy technology roadmap: China wind power development roadmap 2050. Available at: (accessed 25.05.13.). http://www.iea.org/publications/freepublications/publication/china_wind.pdf.
22. Lesser J.A., Su X.J. Design of an economically efficient feed-in tariff structure for renewable energy development. Energy Policy 2008, 36(3):981-990.
23. Li A.J., Lin B.Q. Comparing climate policies to reduce carbon emissions in China. Energy Policy 2013, 60:667-674.
24. Li A.J., Zhang A.Z. Will carbon motivated border tax adjustments function as a threat?. Energy Policy 2012, 47:81-90.
25. Li A.J., Zhang A.Z., Cai H.B., Li X.F., Peng S.S. How large are the impacts of carbon motivated border tax adjustments on China and how to mitigate them?. Energy Policy 2013, 63:927-934.
26. Li W., Song G., Beresford M., Ma B. China[U+05F3]s transition to green energy systems: the economics of home solar water heaters and their popularization in Dezhou city. Energy Policy 2011, 39(10):5909-5919.
27. Lin B.Q. Energy Shortage in China: A Rethinking 2012, Science Press, Beijing, China, Beijing, China, (in Chinese).
28. Lin B.Q., Li A.J. Impacts of carbon motivated border tax adjustments on competitiveness across regions in China. Energy 2011, 36(8):5111-5118.
29. Lin B.Q., Li A.J. Impacts of removing fossil fuel subsidies on China: how large and how to mitigate?. Energy 2012, 44(1):741-749.
30. Mabee W.E., Mannion J., Carpenter T. Comparing the feed-in tariff incentives for renewable electricity in Ontario and Germany. Energy Policy 2012, 40(1):480-489.
31. Martinot E. Renewable power for China: past, present, and future. Front. Energy Power Eng. China 2010, 4(3):287-294.
32. Ming Z., Ximei L., Na L., Song X. Overall review of renewable energy tariff policy in China: evolution, implementation, problems and countermeasures. Renew. Sustain. Energy Rev. 2013, 25:260-271.
33. Moore S., Durant V., Mabee W.E. Determining appropriate feed-in tariff rates to promote biomass-to-electricity generation in Eastern Ontario, Canada. Energy Policy 2013, 63:607-613.
34. National Energy Administration, 2012. The 12th Five-Year Plan on the development of biomass (in Chinese). Available at: (accessed 25.05.13.). http://www.gov.cn/zwgk/2012-12/28/content_2301176.htm.
35. NDRC, 2009. Notice on perfection of policy regarding feed-in tariff of power generated by wind. National Development and Reform Commission, China. Available at: (accessed 25.05.13.). http://www.sdpc.gov.cn/zcfb/zcfbtz/2009tz/t20090727_292827.htm.
36. NDRC, 2010. Notice on perfection of policy regarding feed-in tariff of power generated by biomass. National Development and Reform Commission, China. Available at: (accessed 25.5.13.). http://www.ndrc.gov.cn/zcfb/zcfbtz/2010tz/t20100728_363362.htm.
37. NDRC, 2011. Notice on perfection of policy regarding feed-in tariff of power generated by solar PV. National Development and Reform Commission, China. Available at: (accessed 25.05.13.). http://www.gov.cn/zwgk/2011-08/01/content_1917358.htm.
38. NREL, 2004. Renewable energy in China. Available at: (accessed 25.05.13.). http://www.nrel.gov/docs/fy04osti/35789.pdf.
39. NREL, 2013. System Advisor Model (SAM) version 2013.1.15. Washington, D.C. Available at: (accessed 25.05.13.). https://sam.nrel.gov/.
40. OECD, NEA/IEA Projected Costs of Generating Electricity: 2010 edition 2010, Organisation for Economic Co-operation and Development, Nuclear Energy Agency/International Energy Agency, Paris, France.
41. 2 emissions impact of renewable energy development in China. Energy Policy 2014, 68:60-69.
42. Roth I.F., Ambs L.L. Incorporating externalities into a full cost approach to electric power generation life-cycle costing. Energy 2004, 29(12-15):2125-2144.
43. Schuman S., Lin A. China[U+05F3]s Renewable energy law and its impact on renewable power in China: progress, challenges and recommendations for improving implementation. Energy Policy 2012, 51(12):89-109.
44. SERC, 2011. State Electricity Regulatory Commission.Annual Report of Electricity Regulation in 2011. Available at: (accessed 25.05.13.). http://www.serc.gov.cn/jggg/201208/P020120817333010586438.pdf.
45. Singh P.P., Singh S. Realistic generation cost of solar photovoltaic electricity. Renew. Energy 2010, 35(3):563-569.
46. Tegen S., Hand M., Maples B., Lantz E., Schwabe P., Smith A. 2010 Cost of Wind Energy Review 2012, National Renewable Energy Laboratory, Colorado, USA.
47. The Renewable Energy Law, 2005. The renewable energy law of the People[U+05F3]s Republic of China. Available at: (accessed 25.05.13.). http://www.gov.cn/fwxx/bw/gjdljgwyh/content_2263069.htm.
48. The Renewable Energy Law (Amendment act), 2009. The renewable energy law of the People[U+05F3]s Republic of China (Amendment act). Available at: (accessed 25.05.13.). http://www.gov.cn/flfg/2009-12/26/content_1497462.htm.
49. Thiam D.R. An energy pricing scheme for the diffusion of decentralized renewable technology investment in developing countries. Energy Policy 2011, 39(7):4284-4297.
50. Wang W.G., Zheng G.G. Green Book of Climate Change-China[U+05F3]s Policies and Actions for Addressing Climate Change 2012: Climate FInancing and Low-Carbon Development 2012, Social Sciences Academic Press, Beijing, China, (in Chinese).
51. Wiser, R., Barbose, G., Peterman, C., Darghouth, N., 2009. Tracking the Sun-II: The Installed Costs of Photovoltaics in the US from 1998-2008. Report, Lawrence Berkley National Laboratory. Available at: (accessed 02.04.14.). http://emp.lbl.gov/sites/all/files/REPORT%20lbnl-2674e.pdf.
52. Wu Y.N., Xu R.H. Current status, future potentials and challenges of renewable energy development in Gansu province (Northwest China). Renew. Sustain. Energy Rev. 2013, 18(2):73-86.
53. Zhang P.D., Yang Y.L., Shi J., Zheng Y.H., Wang L.S., Li X.R. Opportunities and challenges for renewable energy policy in China. Renew. Sustain. Energy 2009, 13(2):439-449.
54. Zhang S., He Y. Analysis on the development and policy of solar PV power in China. Renew. Sustain. Energy Rev. 2013, 21:393-401.
55. Zhang S., Andrews-Speed P., Zhao X., He Y. Interactions between renewable energy policy and renewable energy industrial policy: a critical analysis of China[U+05F3]s policy approach to renewable energies. Energy Policy 2013, 62:342-353.
56. Zhang S., Li X. Large scale wind power integration in China: analysis from a policy perspective. Renew. Sustain. Energy Rev. 2012, 16(2):1110-1115.
57. Zhang S.H. Analysis of Operation Cost and Cost Reduction Method of Wind Power, China Wind Power 2011, China Wind Power Group Limited, China.
58. Zhang S., Andrews-Speed P., Ji M. The erratic path of the low-carbon transition in China: evolution of solar PV policy. Energy Policy 2014, 67:903-912.