Open Access
Table 1
Influencing factors
| Factor | Meaning |
|---|---|
 (Daily average market transaction electricity price) |
"Document No. 136" stipulates that prices beyond mechanism guarantee are market-formed and volatile |
 (Mechanism-based electricity price) |
It applies to new energy under mechanism guarantee. Its pricing and implementation period are set by provincial departments. If the average market price is above or below it, grid enterprises settle the difference as regulated, with expenses included in local system operation costs |
 (Monthly average grid-connected photovoltaic electricity quantity) |
The actual monthly average power generated and grid-connected by photovoltaic enterprises |
 (Monthly average mechanism-based electricity quantity) |
For new energy under mechanism guarantee, quantity scale, implementation period, etc., are set by provincial departments. Such quantity may be slightly lower than the actual grid-connected electricity |
 (Annual innovation costs invested by photovoltaic enterprises) |
The annual innovation costs for photovoltaic enterprises adopting active grid-connection |
 (Average transmission and distribution price) |
The average transmission and distribution price of power grid enterprises is usually specified by provincial development and reform commissions |
 (Annual transformation costs for power grid enterprises) |
The annual transformation costs for grid enterprises to boost absorption and dispatching capabilities when actively cooperating with photovoltaic enterprises in grid-connection |
 (Additional grid operation and maintenance costs) |
The additional grid operation and maintenance costs for power grid enterprises when both passively cooperate and photovoltaic enterprises connect passively |
 (Tax rate on photovoltaic enterprises) |
Government's income tax rate on photovoltaic power generation enterprises |
 (Tax rate on power grid enterprises) |
Government's income tax rate on power grid enterprises |
 (Electricity price subsidy) |
Government's electricity price subsidy |
 (Assessment penalties) |
Assessment penalties for grid enterprises passively cooperating and failing to meet the required photovoltaic absorption share |
 (Green certificate spillover value) |
Green electricity premium over the local price in green transactions; mechanism-guaranteed electricity has no repeated green certificate benefits |
 (Social reputation loss) |
Social reputation loss for grid enterprises choosing passive cooperation despite government urging |
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