Industry's long-awaited PV subsidy rules

Summary: The industry's long-awaited solar subsidy rules. The NDRC announced yesterday that it was implementing a regional benchmarking policy for photovoltaic power stations. According to the local solar energy resources and construction costs, the country will be divided into three types of resource areas, respectively, the implementation of each

The industry's long-awaited solar subsidy rules. The NDRC announced yesterday that it was implementing a regional benchmarking policy for photovoltaic power stations. According to the local solar energy resources and construction costs, the country will be divided into three types of resource areas, respectively, the implementation of each degree of 0.9 yuan, 0.95 yuan, 1 yuan electricity price standards. For the distributed photovoltaic power Generation project, the electricity price subsidy policy is implemented according to the electricity generation, and the tariff subsidy standard is 0.42 yuan per degree.

Subsidy higher than expected

According to the NDRC, the benchmark tariff and tariff subsidy standards are implemented in principle for 20 years. The state will gradually reduce electricity prices and subsidy standards according to the changes in the size and cost of photovoltaic power generation.

Boqiang, director of China Energy Economics Research Center at Xiamen University, told the Beijing News reporter yesterday that the national PV price is about 1 yuan per degree, and the thermal power price is 0.4 to 0.5 yuan. After subsidies, PV power market competitiveness will be greatly improved.

Before the release of the rules, the market is expected to be more than 0.40 yuan per degree. In March this year, the National Development and Reform Commission issued "on the improvement of PV power generation price Policy notice" of the draft, said that the distributed subsidy price of 0.35 yuan, the power station subsidy price is also lower than the price introduced.

The best positive for the zoning pricing

The power plant subsidized prices are divided into three categories, the respective prices are different. Li Caihua, deputy director of the NDRC's price division, said yesterday that the country's subsidies for photovoltaic power plants were a constructive subsidy, that is, investors can apply for subsidies when they build. The subsidy policy of the NDRC is to encourage more actual power generation, so subsidies are based on actual electricity generation. Another big change is that the power plant subsidy from the national unified price into three categories of different prices, so that subsidies more reasonable.

In this respect, Boqiang said, the subsidy rules of the biggest positive is zoning pricing, zoning pricing than the national single price much better. Solar power, he argues, is similar to wind power, and there are big uncertainties about factors such as sunshine. The resource conditions in different regions have a great impact on power generation, and other countries ' PV subsidy regulations are to implement zoning pricing.

In addition, he said, prior to the implementation of construction subsidies, often have the occurrence of fraud. After taking the subsidy, there is no real building power generation. Subsidies with actual electricity generation can avoid such deception.

Related

Increase environmental protection tariff subsidy

The NDRC has also raised subsidies for more environmentally-friendly power generation companies. The notice said that since September 25 this year, the coal-fired power generation enterprises to remove the electricity price compensation standard from 0.8 cents per degree to 1 cents, the soot emission concentration of less than 30 mg/cu m (20 mg/cubic meters) of coal-fired power generation enterprises in the implementation of 0.2 cents per degree compensation.

Liu Bingjiang, director of the total Pollutant Emission Control Division of the Ministry of Environmental Protection, said the move would allow PM2.5 main pollutants to be controlled.

Analysis

Favorable PV upstream and downstream

The analysis said that the subsidy price is higher than the market expectation, will be favorable to PV equipment manufacturing and downstream investors. Li Caihua that downstream generators, in their own use of electricity generation, can also enjoy a subsidy of 0.42 yuan. Use of electricity, but also sell, generate revenue. Downstream of the increase in equipment demand will be favorable to the upstream photovoltaic equipment manufacturers.

In early August, Yingli had decided to build downstream power plants and distribution, Zhixin, the publicity director of Yingli Group, told the Beijing News correspondent yesterday.