Study on business models of distributed generation in China

Along with the implementation of electricity sales-side reform and incremental power distribution investment liberalization under China’s new round of electricity market reform, the main subjects of distributed generation investment, construction, and operations have become more various, and the approaches as well as the ways that distributed generation takes part in the market have been more flexible. How to operate distributed generation economically and efficiently in this market environment has become an urgent issue to be addressed. Based on the domestic development situation of China’s distributed generation, this paper introduces typical existing business models of distributed generation, and elaborates the correlation between electricity market reform and business models of distributed generation in depth in combination with the contents of electricity market reform. At last, several business models of distributed generation which are feasible to be implemented in China have been proposed under the new electricity market reform based on successful international distributed generation operation experiences in the terms of stimulating stakeholders’ participation in the investment and operations of distributed generation. Characteristics of these recommended models are compared and analyzed as well. Keywords: Distributed generation, Electricity market reform, Business models