Pixie Chart of the week | Identifying the optimum subsidy for microgrids

In this week’s Pixie Chart of the week, we explore a recent study by researchers from the School of Economics and Business Administration at Chongqing University, China.

They have identified the optimum coefficient for a government subsidy to rationalise the investment in microgrids, and an increase in the subsidy coefficient leads to greater profits for both the microgrid and the distribution network operator (DNO) involved. However, if they increase it too much, do they lose the social benefit? 

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