Capacity investment decision and coordination model research in distributed power generation

Wenhui Zhao, Xiaomei Wang

Distributed power generation (DG) projects have the advantages of being close to load centers and easy to consumption. These characteristics, together with the incentive of subsidy policy, have led to the rapid development of DG projects in China. However, subsidies put a lot of fiscal pressure to the government. We need to explore other models that can encourage DG investment. Based on the supply chain coordination theory, both centralized and decentralized decision-making modes are discussed in the paper. The capacity investment and coordination models of profit distribution and risk allocation between the DG owners and investors are designed under the constraint of market demand. The research shows that the risk sharing model and the modified profit sharing model can achieve the optimal DG capacity in the centralized decision-making mode. Both of them can realize the coordination of the supply chain. The design and implementation of these mechanisms can promote the scientific and sustainable development of China's DG to some extent.

https://dx.doi.org/10.31873/IJEAS/6.3.2019.23