Photovoltaic power generation projects investment risk analysis in Guizhou Province, China

In the new electricity market environment, PV project investment faces more investment risks. In order to guarantee the supply of electricity effectively and reduce carbon dioxide emissions, it needs the relevant government departments to guide investors to invest in clean energy generation projects with appropriate policies. Based on real options theory, this paper develops a investment decision-model and a risk assessment framework for PV power generation projects in China. In the case of grid-connected PV generation demonstration project, this paper carry out investment decision simulation from the uncertainty of investment cost. The simulation results show that the model can provide investors an investment reference. Meanwhile, it can be used as quantitative analysis tools for policy makers to make a reasonable investment policy.