The government tries to encourage the firms to invest immediately by providing subsidies to this irreversible investment. 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 ...
This paper considers time-of-use electricity prices, establishes a benefit model from three aspects of peak and valley arbitrage, reduction of power outage losses, and government subsidies, and establishes a cost model from initial construction, operation and maintenance, and recovery and replacement....
Referring to the support policies for the energy storage industry, there are currently two basic forms of government subsidies: (1) initial construction investment subsidies for energy storage and (2) electricity price subsidies. The two subsidy forms focus on subsidies for investment and construction...
The model accounted for factors such as energy storage arbitrage revenue, government tariff subsidies, reductions in electricity transmission fees, delays in grid upgrades, and overall life cycle costs. Conditional value-at-risk (CVaR) was employed as a risk assessment metric to provide investment ...