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Non-subsidy photovoltaic demonstration projects to promote the full market of photovoltaic

Autumn September, cinnamon fragrance.  In this harvest day, there is no ordinary photovoltaic power station project quota, two distributed photovoltaic indicators of the domestic photovoltaic industry, the comprehensive marketization process continues to accelerate, the industry ushered in new development opportunities.  


On August 30, the National Energy Administration in the printing on the no state subsidies of photovoltaic power generation projects related matters ", points out that in for pv projects do not need to state subsidies, all can be in accordance with the relevant national renewable energy policy, combined with the electric power market reform, the implementation of land and acceptance conditions under the premise of organize implementation of the grid.  


It is expected to drive down non-technical costs substantially  


With the continuous progress of photovoltaic technology, the cost of photovoltaic products in China has fallen rapidly and the efficiency has been improving. In contrast, the cost of photovoltaic non-technology has fallen instead of rising, which largely offsets the dividend brought by technology.  


Wang Bohua, secretary general of the China Photovoltaic Industry Association, said that non-technical costs have accounted for more than 20 percent of the total investment cost, including at least 0.1 yuan above the electricity price.  It mainly includes land cost, financial cost and network connection cost.  Among them, land cost is more prominent.  


It is understood that in some areas of Inner Mongolia, a 100,000-kilowatt ground photovoltaic power station occupying cultivated land, generally need to pay a one-time tax of 40 million yuan of cultivated land occupation, pay 8 million yuan of land use tax every year, calculate down to 20 years have a total of 200 million yuan of land taxes and fees.  


In addition, the three gorges, vice President of clean energy fund of cao cao said, in general, access to the engineering fee includes access to review and approval of the relevant fees, send line construction cost, send out line land cost, gathering station booster station construction cost, expansion costs such as the modification of the initial investment is about 0.5 yuan/watt, a small amount of project also need pay the Internet fee.  


Obviously, the high non-technical cost not only reduces the profit margin of enterprises, but also delays the arrival of the era of parity, which is not conducive to the sustainable development of the photovoltaic industry.  


In fact, the substantial reduction of the non-technical cost of the third batch of leading bases provides a reference for the unsubsidized PHOTOVOLTAIC demonstration projects.  Reporters learned that the third batch of pacesetter base project non-technical costs can be substantially reduced, and local government support inseparable.  For example, the Government of Baicheng City in Jilin province promises that "the land in the base will be used by investment enterprises in the way of transfer, and the use standard is: 200 yuan/mu/year for renting unused land, and the delivery method is one-time payment for 25 years".  Finally, baicheng Leader Base bidding price 0.39 yuan/KWH, close to the local coal power grid benchmark price.  


It can be predicted that the non-subsidy photovoltaic demonstration projects, once strongly supported by the relevant local departments, are expected to drive down the non-technical cost of photovoltaic in China.  


It is beneficial to solve the problem of photovoltaic absorption  


In the past two years, although the light abandonment rate in China has gradually declined and the photovoltaic consumption situation has improved, the photovoltaic consumption situation in some areas is still severe.  Data released by the National Energy Administration showed that in the first half of this year, xinjiang (excluding the XPCC) abandoned 1.35 billion kilowatt-hours of optical power, an abandonment rate of 20 percent.  Gansu abandoned light power 590 million KWH, light abandonment rate of 11%.  


Since June, authorities have been studying how to manage the development of photovoltaic projects without subsidies, said Li Qionghui, an expert at the State Grid Energy Research Institute.  Either in the form of the frontrunner or through bidding to obtain the right to develop the project, or no indicators at all, directly into the electricity market transaction.  If photovoltaic power is directly traded in the electricity market, there will be no guarantee hours, and the result may be completely crushed by thermal power.  Therefore, unsubsidized PV demonstration projects need local guarantees for electricity consumption.  


Similarly, the implementation of the third batch of frontrunner projects also provides a reference model for electricity consumption of unsubsidized PHOTOVOLTAIC demonstration projects.  For example, in order to ensure the full absorption of the electricity generated by the third batch of leading base projects in Datong, Shanxi Electric Power Company of State Grid has made it clear that "the 500,000 kW electricity generated by the leading base of PHOTOVOLTAIC power generation application in Datong coal mining subsidence area can be absorbed within Shanxi Province".  It also promises that "the power generation level of the base project shall reach the minimum guarantee hours of the region required by the state (or not less than 95% of the power generation hours of the base), and the light abandonment rate shall be less than 5%".  


According to the Monthly Report on operation monitoring of the First phase of Datong Photovoltaic Power Generation Leading Base released in May this year, from January to April this year, the project of datong 1 million kW leading base ran well with no light abandoning phenomenon.  This is mainly due to datong local relevant departments take multiple measures to ensure that the base takes the lead in electricity consumption.  


Industry insiders told reporters that after the formal implementation of the non-subsidy photovoltaic demonstration project, once the relevant local departments like the leading base promised to ensure the project electricity consumption, which will help solve the problem of photovoltaic consumption and help the high-quality development of photovoltaic.  


Help pv to get rid of subsidies as soon as possible  


As is known to all, an important purpose of developing subsidy-free photovoltaic demonstration projects is to solve the problem of subsidy arrears.  


In recent years, the development of photovoltaic industry is closely related to government subsidies.  With the gradual expansion of photovoltaic installed scale, the growth rate of subsidy fund demand is also increasing year by year.  In 2015, photovoltaics accounted for 31 percent of subsidies for renewable energy, the data showed.  


By the end of 2017, the cumulative subsidy gap for renewable energy exceeded 110 billion yuan.  Among them, the photovoltaic subsidy gap is 45.5 billion yuan, accounting for about 40%.  


The industry expects photovoltaics to overtake wind and biomass by the end of this year as the category of renewable resources requiring the most subsidy money.  


As the saying goes, "the baby who keeps nursing never grows up."  In view of the growing gap in subsidies and the need to promote the market-oriented development of the photovoltaic industry, photovoltaic subsidies have actually retreated since 2016, and this year the decline of subsidies is further accelerating.  


"With the start of the non-subsidy photovoltaic project, photovoltaic power generation to the full subsidy prelude will be officially opened."  Insiders told reporters that subsidies, demonstration projects from reduce non-technical cost link, the first around to promote power given again, increase power generation benefits the "essay", the two authors efficiency of market-oriented means will raise the enthusiasm of enterprises to participate in, contribute to photovoltaic (pv) at an early date out of rely on subsidies, push the photovoltaic market in an all-round way.  

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