Choice of the distributed photovoltaic power generation operating mode for a manufacturing enterprise: Surrounding users vs a power grid

By engaging in distributed photovoltaic power generation (DPPG), manufacturing enterprises can not only reduce their own production costs but also improve their use of clean energy. Manufacturing enterprises that invest in DPPG (MEDPPGs) use photovoltaic electricity to produce products and sell surplus power to earn profits. Due to the volatility of product demand, to obtain the maximum revenue, MEDPPGs need to balance the trade-off between the amount of electricity used to produce products and the amount of electricity sold. In this study, we built two DPPG modes which one mode sells the surplus power to the surrounding users, and the other mode integrates the remaining power into the power grid, either of which may be supported by the Chinese government. In this study, a newsvendor model and Stackelberg model were established. It was observed that neither of the two modes is an absolute profit dominant strategy for an MEDPPG. When parameters such as the product price, power consumption per unit of product, or power generation are different from their threshold values, MEDPPGs change their preference. The research results can help potential investors better choose the DPPG operating mode and provide policy suggestions for their investment strategy.