How to implement the energy storage subsidy policy

How to address the issue of energy subsidies?

The issue of energy subsidies can be addressed by resolving the question of definitions, measurement, and evaluation techniques. Despite existing challenges in measuring and assessing subsidies, subsidy tracking in the EECCA countries can proceed using available analytical tools.

What are energy subsidies?

According to the IEA, energy subsidies are any government actions that specifically concern the energy sector and lower the cost of energy production, raise the price received by energy producers, or lower the price paid by energy consumers. (IEA, 2006)

Is energy subsidy reform a difficult policy choice?

Energy subsidy reform poses important analytical challenges and is a challenging policy choice.

Does energy storage subsidy affect microgrid diffusion?

The periodical fluctuation results of microgrid diffusion under different storage subsides have indicated that different energy storage subsidies have different effects on microgrid diffusion, and the electricity price subsidy for energy storage has more significant effect than the initial cost subsidy to promote microgrid diffusion.

How to estimate ESS subsidies for Microgrid?

Real option game enables this method to consider various factors as well as the market competition. Then, ESS subsidies for microgrid are estimated by analyzing the periodical fluctuations of MG diffusion and by utilizing real option and evolutionary game theory. The rest of the paper is organized as follows.

Is financial subsidy necessary to overcome the high-cost limitation of microgrid?

Conclusions It is acknowledged that financial subsidy is essential to overcome the high-cost limitation from energy storage system of microgrid until storage technologies denoted for microgrid become more cost-effective.