Economic benefits assessments of "coal-to-electricity" project in rural residents heating based on life cycle cost.

Abstract In recent years, with the gradual deterioration of atmospheric environment in China, the "coal to electricity" project is being implemented by the government vigorously. Even though "coal to electricity" project has a positive impact on eliminating serious pollution and promoting clean energy, in the rural areas, the power grid enterprises have less interest in implementing this project. Aimed at this background, the present paper explored the economic benefits generated by the implementation of "coal to electricity" project of grid enterprises. The results indicate that the project carried out by grid company has poor economic performance during its life cycle, which could attributable to its large investment, irrational electricity price mechanism and the big seasonal difference between peak and valley power demand. Finally, based on the conclusion, this paper gives some specific suggestions for grid corporation to increase the economic efficiency of "coal to electricity" project, including reforming the existing irrational price mechanism, taking full advantage of distributed renewable energy and so on. Graphical abstract Image 1 Highlights • "Coal to electricity" project implemented by grid company has a poor economic performance. • The deficiency in economic performance mainly caused by large investment and irrational price mechanism. • Measures need to be taken such as reforming the existing irrational price mechanism or use distributed renewable energy. [ABSTRACT FROM AUTHOR]