2018 energy storage subsidy

Does CO2 storage subsidy affect CCS investment decision for coal-fired power plants?

Results and discussion The results indicate that the CO2 storage subsidy has significant effects on the CCS investment decision for coal- fired power plants. The main results are as follows. 4.1.

Will China keep implementing policy incentives for energy storage?

To effectively guarantee its grid stability of renewable energy sources, the Chinese government is expected to keep implementing its policy incentives for energy storage in the near future. This particular dataset provides us with the technical specifications of an energy storage system and allows us to calculate the model parameters.

Can a subsidy policy be activated or terminated at an uncertain time?

The subsidy policy, however, can be activated or terminated at an uncertain time and therefore, the firms face additional policy uncertainty when making the decision. We derive the investment thresholds of the market spread that the firms use to make a decision on investing immediately or holding an option.

Do firms invest immediately if there is no subsidy?

Recall that if there is no subsidy, firms would invest immediately if κ> κ 0 ∗, and hold the option if κ <κ 0 ∗. Fig. 1 shows that the threshold value rises when the probability of a subsidy in the future is higher. Firms tend to adopt a wait-and-see approach when there is no subsidy policy in place.