Evolutionary game analysis of the intelligent upgrading of smart solar photovoltaic projects

Abstract

Purpose

The development of China's solar photovoltaic (PV) industry is in a transition period from pursuing scale and speed to focusing on efficiency and quality. “Smart PV projects” (SPVPs) were proposed by the ministries of the Chinese government in 2018 to encourage intelligent upgrading and to fill the gaps in traditional PV projects. However, only a small number of PV enterprises are in progress, and only a few SPVPs have been built. The intelligence level of China's PV projects needs to be improved. The purpose of this study is to analyze the willingness of the main participants to be involved in the intelligent upgrading of PV projects by establishing an evolutionary game model that includes three parties.

Design/methodology/approach

A tripartite evolutionary game model is constructed that considers PV enterprises, project owners and the government. The evolutionary stability strategies of each party and the corresponding stable conditions are obtained. The parameters that affect the decision behaviors are also analyzed.

Findings

The four stages of the intelligent upgrade of PV projects and the effects of the government subsidy strategies are examined. At different stages, adopting different measures to promote cooperation among the three parties involved is necessary. Government subsidies should be provided to PV enterprises during the initial stage and should be biased toward project owners during the intermediate stage. During the peak stage, PV enterprises constantly need to decrease project costs and improve quality and service, thus helping project owners reduce their initial investments and obtain additional gains. The government's reputation drives it to continually adopt incentive strategies.

Originality/value

This research focuses on the interactions among the three parties. Based on evolutionary game analysis, several conditions that facilitate the intelligent upgrading of PV projects are illustrated. Implications for different developing stages are proposed from the perspectives of each party for the decision-makers of SPVPs.

Citation

Hu, Y., Song, J. and Zhao, T. (2022), "Evolutionary game analysis of the intelligent upgrading of smart solar photovoltaic projects", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-07-2021-0631