Cost Reduction Potential of Photovoltaic Power Generation in China
The cost of photovoltaic (PV) power generation has always been higher than the cost of conventional power generation or the sales price of electricity both at home and abroad. To realize the integration of the PV power with the power grid at a lower price, it is necessary to have a clear understanding of the possible measures to be taken to reduce the PV cost and the potential of the cost reduction. This study explores the cost reduction potential of the PV power generation in China to provide the decision-making basis for the government and businesses. The paper creates a bottom-up model based on the whole lifecycle cost so as to identify the PV cost reduction potential in China betbre 2020 that will be realized by major driving factors. It is concluded that the PV power and the conventional power will reach parity in price in parts of China by 2020, while the cost of the PV power generation should be further reduced to realize large scale application and sustainable development. Technological innovations will play a key role in the cost reduction.
photovoltaic power generationelectricity generation costfeed in tariff