Research on Investment Benefit Boundary of Offshore Wind Power based on Environmental Spillover Effect

Along with the sustainable development of offshore wind power project, it also faces the pressure of renewable energy subsidy gap. By applying carbon trading price and green certificate trading price as the tools for estimating the environmental spillover effect, this paper establishes the Investment Benefit Boundary Model to get the cost space of offshore wind power. This paper gets the investment boundary under different portfolios of feed-in tariffs and internal rate of return. The result demonstrated that the carbon trading can significantly increase maximum affordable cost of offshore wind power project, which further increases the investment space for offshore wind power. Besides, both carbon trading and green certificate trading will help to alleviate the pressure of renewable energy subsidy gap, which is significant in reducing feed-in tariffs.