Blue skies over China: The effect of pollution-control on solar power generation and revenues

Abstract

Air pollution is the single most important environmental health risk, causing about 7 million premature deaths annually worldwide. China is the world’s largest emitter of anthropogenic air pollutants, which causes major negative health consequences. The Chinese government has implemented several policies to reduce air pollution, with success in some but far from all sectors. In addition to the health benefits, reducing air pollution will have side-benefits, such as an increase in the electricity generated by the solar photovoltaic panels via an increase in surface solar irradiance through a reduction of haze and aerosol-impacted clouds. We use the global aerosol-climate model ECHAM6-HAM2 with the bottom-up emissions inventory from the Community Emission Data System and quantify the geographically specific increases in generation and economic revenue to the Chinese solar photovoltaic fleet as a result of reducing or eliminating air pollution from the energy, industrial, transport, and residential and commercial sectors. We find that by 2040, the gains will be substantial: the projected solar photovoltaic fleet would produce between 85–158 TWh/year of additional power in clean compared to polluted air, generating US$6.9–10.1 billion of additional annual revenues in the solar photovoltaic sector alone. Furthermore, we quantify the cost of adopting best-practice emission standards in all sectors and find that the revenue gains from the increased solar photovoltaic generation could offset up to about 13–17% of the costs of strong air pollution control measures designed to reach near-zero emissions in all sectors. Hence, reducing air pollution in China will not only have clear health benefits, but the side-effect of increased solar power generation would also offset a sizeable share of the costs of air pollution control measures.