A COMPREHENSIVE STUDY OF O&M BUSINESS MODEL OF A PHOTOVOLTAIC COMPANY

Abstract

China has achieved the consensus of decarbonisation in response to the Paris Agreement, with a goal of ‘carbon neutrality’ by 2050. China’s energy consumption composition, where coal is the dominant energy resource, is seeking an increase of non-fuel energy consumption, namely energy transformation, or diversification. To achieve low energy consumption and low carbon emission, renewable energy include wind, solar and nuclear energy will enhance the efficiency of energy usage, in comparison with traditional energy sources. In the period of Energy Transition from traditional fossil fuels to renewable energy, the industry has suffered due to an immature market and lacking standardisation. More specifically, there are problems embedded in the operation and maintenance model within the industry, which decreases the efficiency of the photovoltaic system and the corresponding company revenue.

This paper tries to detect the performance both in power generation and finance by identifying issues of O&M. A representative company, ACC, was studied through conducting surveys. Results show that there is a gap between different groups of stakeholders in terms of O&M necessity and responsibility. The field research, combined with literature review, revealed the shortcoming and expected improvements a high-quality O&M should possess. Simulation is also applied to the analysis to enhance the understanding of the way financial performance is related to O&M. It is admitted that the high quality of operation and maintenance activities mitigate the potential risks. The report concludes that daily monitoring and technical improvement, in line with training people who are in charge of the operation of the plants, are essential to at least maintain the power generation. KPIs are provided for improving the overall O&M performance, as well as confirming the reliability and efficiency of these activities. However, the report shows its limitation in involving large dataset to produce a more convincing conclusion. Multiple companies are suggested to be interviewed so that readers could develop a broader view of the whole PV market.