Study on FIP Policy Design by Using Multi-agent Based Electric Power Market Simulation Model

摘要

A multi-agent based electricity market simulation model is used to study the possible effects of variable renewable technologies on the electricity market and the implications for the design of the feed-in premium (FIP) policy, which is being discussed by government committees in the context of revision of the current feed-in tariff mechanism in Japan. The paper focuses on the impact of solar PV in Kyushu. The results suggest that under a FIP price of 10 yen/kWh, the breakeven cost of solar PV (in Kyushu) is under 150,000 yen/kW. However, if the amount of solar PV increases from 7,850 MW to 16,673 MW, the monthly average market value of solar PV would decrease by 3–4 yen/kWh and cheaper solar PV cost would be required to achieve breakeven. Although batteries can help to increase solar PV’ revenue from electricity market, to make the investment on batteries economically make sense, the cost of batteries need to be below 15,000/kWh.