One-for-one electricity price introduction PV subsidies "East and West" are different

Without any expectation in the industry, on August 1st, the National Development and Reform Commission issued the "Notice on Perfecting the On-grid Electricity Tariff Policy for Solar Photovoltaic Power Generation." China's PV on-grid tariff was formally introduced. Prior to this, the PV on-grid tariffs adopted a concession tendering and a one-on-one policy.

For the photovoltaic industry at the bottom of the industry, the introduction of the on-grid tariff is undoubtedly a powerful and powerful agent. An industry figure estimated by the “China Business” reporter that under this favorable stimulus, the highest new installed PV capacity this year will reach 2GW – and by the end of 2010, China’s total photovoltaic installed capacity was less than 800MW (1GW= 1000MW).

However, there are also worries in the industry that “universal” prices make the eastern region with higher costs more uncompetitive. Photovoltaic companies or like “west” are tired of “eastern”, which is detrimental to the overall development of China's photovoltaic industry.

Unexpectedly, the good news reporter found during the interview that all the people in the industry were surprised by the introduction of the PV on-grid tariff.

As early as the end of 2009, this reporter learned that the Development and Reform Commission intends to introduce on-grid tariffs. The price at that time was estimated to be between 1.2 yuan and 1.3 yuan per kilowatt-hour, 1.2 yuan for places with sufficient sunshine in the west and 1.3 yuan for places where the eastern part of the sun is scarce. . However, due to unsuccessful game of interests of all parties, this Internet price has not been introduced.

Just two months ago, an official of the Energy Development Bureau of the National Development and Reform Commission once affirmed to this reporter that the on-grid electricity price will not be introduced in the next year or two. “At present, China is not suitable for adopting the western unified electricity price, and it is a matter of discussion. In line with China's national conditions."

However, the government always hides and hides with people. On August 1, the PV on-grid tariff came into being. According to the reporter’s understanding, the launch of the on-grid tariff may be the plan of the Qinghai Provincial Development and Reform Commission earlier this year – in June 2011, Qinghai Province launched a huge photovoltaic project, and all photovoltaic power stations built on September 30 this year will enjoy each The electricity price of 1.15 yuan, and there is no total limit, the plan has been reported to the National Development and Reform Commission at the end of June.

A Qinghai Provincial Development and Reform Commission official also admitted to reporters: “We did not expect (photovoltaic projects) to be approved this time soon, but also as a unified launch of the national electricity price.”

According to Sweek, a senior analyst at OFweek Solar PV Network, the introduction of on-grid electricity prices is due to the “rescue”. At present, the domestic photovoltaic industry is at the bottom of the valley. Local governments and many companies have joined together to demand electricity prices. The National Development and Reform Commission has made a smooth move. "It can be seen that this is a simplistic version, some key details are still missing, this time the introduction of some rush."

Many people in the industry also agree with this view: The introduction of the photovoltaic power generation price by the Energy Development Bureau of the National Development and Reform Commission has a lot to do with the industry downturn faced by domestic PV companies, coupled with the policy of “forcing Gong” issued by local governments such as Qinghai Province, prompting the National Development and Reform Commission to do Out of this decision.

There is always a problem with the one-size-fits-all policies in the east and the west.

A number of business executives told reporters that the implementation of the 1.15 yuan price at the end of 2011 and the 1 yuan price implemented in 2012 not only allowed PV companies to make slight profits in the western provinces, but also “nothing to gain” in the eastern provinces. .

Gu Huamin, president of the PV power plant installer Zhonghuan Engineering, told this reporter that according to the above prices, if the company is to invest in photovoltaic power plants, it can achieve an internal rate of return of 8% in the western region, but this is the bottom line for the company to engage in project investment. Below this, there is no value at all.

“If the above price is implemented in the eastern region, there is almost no internal rate of return and the penny is not earned. In my view, with the current sunshine conditions and costs in the eastern region, the subsidy price must be at least 1.4 yuan.”

The CEO of Suzhou Atos, Mr. Yan Xiaoyu suggested that the subsidy price could be adjusted afterwards. “The western region is mostly deserted and the construction cost is low. In the eastern region, the land is tight, the labor costs are high, and the sunshine is only half of that in the western region. Therefore, the on-grid electricity price in the eastern region should be gradually increased to increase the enthusiasm of the enterprises.”

In 2009, Jiangsu Province introduced its own feed-in tariff subsidy program, which means that the province will draw 2 cents per kilowatt hour for support. The subsidy time will be from 2009 to 2011. The price will be reduced year by year, and 2011 will be the last year. The subsidy price is 1.4 yuan/kWh. Previously, GCL-Poly enjoyed the subsidy program at the 20MW power station in Xuzhou.

Gu Huamin believes that under the currently published PV on-grid tariff standards, the construction of power stations in the east means losses, so it is necessary for the eastern provinces and cities to issue new subsidies to support the construction of photovoltaic power plants. “We hope that the on-grid tariff subsidies in Jiangsu next year will be shared by the central government and local finances, which will benefit both parties.”