Chaos in the implementation of energy storage subsidies

Do government subsidies increase total factor productivity of energy storage enterprises?

Based on panel data of Chinese 101 energy storage enterprises from 2007 to 2022, this paper examines the effectiveness of government subsidies in the energy storage industry from the perspective of total factor productivity (TFP). The results unveil that government subsidies significantly increase the TFP of ESEs.

How do government subsidies help energy storage enterprises?

Government subsidies alleviate the financial constraints of energy storage enterprises. Government subsidies promote R&D investment in energy storage enterprises. Differentiated subsidy strategies can generate higher TFP improvement returns. Government subsidies are an important means to guide the development of the energy storage industry.

Do government subsidies affect the R&D of large-scale energy storage projects?

Government subsidies may have a stronger effect on the R&D of large-scale ESEs. Currently, the energy storage projects show a trend of continuous scale-up, and large ESEs are more likely to construct large-scale “wind power + PV + energy storage” projects.

Can phasing out fossil fuel subsidies help achieve net-zero emissions?

Phasing out fossil fuel subsidies can reallocate funds to clean energy infrastructure. Achieving net-zero emissions through energy transformation necessitates a multifaceted strategy, including removing energy supply chain subsidies, accelerating energy transitions, and deploying clean energy technologies.

How does removing energy supply chain subsidies affect energy transformations?

Removing energy supply chain subsidies accelerates energy transformations for net-zero. Clean energy technology adoption enhances progress toward net-zero emissions targets. Energy savings show a negative link to energy transitions, indicating trade-off effects. Renewable energy consumption positively influences net-zero energy transformations.

Are government subsidies effective in reducing energy storage financing constraints?

Large ESEs with sufficient collateral and high technological maturity of their energy storage products are more likely to receive government subsidies and external financing from the banking sector. As a result, government subsidies are more effective in alleviating the financing constraints of large-scale ESEs.