Polaris solar PV net news: the “Twelve-Five” period PV installed capacity annual average growth rate of 178%, generating average annual growth of 219%, bringing subsidies along with growing demand, through annual management scale of the adjustment and optimization of photovoltaic power generation, leading renewable energy subsidy funding gap, measures to ensure the sustained and healthy development of new energy. From 2014, the National Energy Board annual construction management of photovoltaic power generation project, yearly annual construction scale in the issue. Incorporated into the annual construction of the PV power station, with national renewable energy fund benefits qualifications; distributed PV without limiting the scale of the project, built into the scope of subsidy. An annual construction management to guide regional optimization of PV power station construction sequence, may help reduce some provinces abandoned power contradiction, laid the Foundation for standard photovoltaic development.
PV electricity price, subsidy status
Benchmark price. Renewable energy project in accordance with the production time, implementation of the national development and Reform Commission, a clear benchmark price of the corresponding period. December 2015 in accordance with the national development and Reform Commission on improving the benchmark price for onshore wind energy photovoltaic Internet policy notice, introduction of photovoltaic power benchmark price with the price policy of gradually reducing the scale of development. PV on-grid price of coal-fired units on the ground benchmark price (including desulfurization, denitrification, dust) within part of the settlement by the local provincial power grid; higher parts be subsidized through the national renewable energy development fund.
Subsidy funds payment. Beginning in 2012, the Ministry announced five additional scholarships renewable electricity price list (“list of grants”), including the completion of the project before August 2013, have been granted funds of about 100 billion yuan. In January 2016, Ministry organizations declared the sixth instalment on the grid before the end of February 2015 project grants directory. Preliminary estimates, benefits outside of about 46 billion yuan has been put into operation projects funding needs.
Renewable electricity price levy additional standards. End of 2015, the national development and Reform Commission issued on reducing coal-fired electricity price and electricity price for industrial and commercial law, residential and agricultural production and other renewable electricity price surcharge levied on the electricity standard up from 1.5 cents per kilowatt hour in 2013 to 1.9 cents/kWh to meet before February 2015-grid project requirements after February 2015-grid project grant funds have not yet been implemented. Funds management process. July 2013, the State Council to promote the healthy development of the photovoltaic industry, improve the management of funds. A is in subsidies funds allocated object and process Shang, will zhiqian provincial financial sector by quarter pre dial to provincial grid enterprise, adjustment for by central financial by quarter pre dial to national grid, and South grid, grid Enterprise; II is in subsidies settlement way Shang, requirements on PV power station, grid enterprise and power enterprise by months full settlement, for distributed PV power, grid enterprise by electricity settlement cycle timely paid subsidies funds.
“Thirteen-Five” demand subsidies and to ease congestion
Subsidy funding needs. Under the National Energy Board is developing renewable energy “Thirteen-Five” development plan, as well as solar and wind power “Thirteen-Five” development plan Plan 2020 PV 150 million kW, 250 million kilowatts of wind power. Reference “Twelve-Five” price range, PV annual down 0.03 Yuan/kWh, wind down 0.02 Yuan per year per kilowatt hour, according to the new benchmark coal price change calculation, “Thirteen-Five” subsidies needs about 600 billion yuan for the period. If renewable energy electricity price surcharge unchanged when standard 0.019/kW, about 430 billion yuan may be levied, subsidy funding gap of about 170 billion yuan.
Subsidy funding gap channel. First, raise additional renewable electricity price standards. To ensure that the subsidy funds to support new energy scale, we recommend “Thirteen-Five” price surcharge during standard, up from 0.03 Yuan/kWh, and scope will be extended to residential and agricultural production, and all electrical power. After 2020, gradually cut electricity prices an additional levels in 2030, photovoltaic power generation no longer needs subsidies. Second, clear renewable electricity price adjustment mechanism for the dynamic. The “Thirteen-Five” period, according to the renewable energy generation technology and cost reduction, in order to protect the level of industrial development of basic rate of return, combined with the annual scale of renewable energy added to establish renewable electricity price adjustment mechanism for the dynamic. According to PV 2025 electricity price level with the sale price, 2030 parity goals, clearly decreasing price levels of specific criteria. Third, adjust the subsidy period. At present, renewable energy generation projects for a period of 20 years. To consider new projects, according to its technological advancement and earnings, before the loan repayment is completed, benchmark prices for electricity generated by renewable energy Internet acquisitions; after you complete the loan servicing, adjusting to new benchmark coal price acquisitions, which guarantees reasonable economic benefits of the project owners, and ensure the effective use of subsidy funds.
PV annual scale management mode research
In order to meet the “Thirteen-Five” PV development goals, combined with the PV price and subsidy funds, following several management models:
Classification of annual construction management. Since 2014 annual construction of the photovoltaic power generation based on classification management 2016 National Energy Council. Includes: one is an open-ended scale PV projects. Use their building roofs, walls and subsidiary premises construction of photovoltaic power generation projects, as well as all the spontaneous use of PV power plant project on the ground. Second, common PV power plant project. Issued by the National Energy Board to the provinces year new construction scale, regions are encouraged to take public bids, competitive selection competitive manner common PV power plant project. Three leads is PV technology demonstration bases. Annual construction of the National Energy Board issued separately, in principle, the base in the city for units, the planning capacity of not less than 500,000-kilowatt. Coordinated by the Energy Department organized construction, base station within the investor of the project should be determined by market competition. Competitive allocation of items the on-grid price bidding as an important competitive edge. Electricity price shall not exceed the new benchmark local PV price levels.
Analysis: the construction scale and timing patterns conducive to the country’s macro-economic control, mobilize the enthusiasm of the local photovoltaic power generation project construction. The model provides for an annual scale photovoltaic power plant, with State renewable energy funds benefits qualification, but annual construction scale and national renewable energy subsidies not directly related, unable to ease the subsidy funding gap. Since local governments are only concerned about the annual construction scale, subsidies imposed pressure borne by the State, subsidy funds insufficient, owners unable to get the expected benefits of the project.
Annual construction subsidies and manpower management. Annual construction management model based on considering the annual subsidy funds, synchronous release annual construction and subsidies. Provinces during the reporting year the new construction plans, combined with the previous year’s subsidy funding requirements, determine the new construction. Reporting scale in reference to the province, the National Energy Board issued its annual capacity, synchronization of the Ministry issued an annual subsidy funds to subsidize the constraints of size, overall arrangement in the province, the province released the annual construction scale. Subsidy funding part of the country, by the provinces themselves.
Analysis: a model for national and local government are regulated by the construction scale and timing, for national and local governments to ease the subsidy funding gap for the coordination, promotion of sustainable development of photovoltaic power generation. But some provinces receive State subsidies financial constraints for the development of PV power generation projects, raise subsidy funding pressure.
Annual new construction and pricing flexibility to adjust mode. Reference Germany model for different annual capacity, flexible PV on-grid price: Germany set PV on-grid price benchmark rate cut, added 3.5 million-kilowatt new annual installed capacity, on-grid prices 9%. If installed over 3.5 million-kilowatt, beyond 1 million-kilowatt, on-grid prices lowered further, 3%, Supreme, down to 24% if installed under 2.5 million-kilowatt, 500,000-kilowatt, electricity prices have dropped by 2.5%. In addition, Germany to introduce market-oriented subsidy mechanism. No longer full subsidies for renewable energy, but renewable according to the previous month the market trading price of fixed subsidies and market trading bonus calculated as the difference, sets management bonuses to encourage renewable energy joined the competition, eventually renewable energy benefits as “market income + bonus + market trading management bonuses”.
Analysis: which can effectively alleviate the underfunding of renewable energy subsidies, as well as for PV investors to create a long-term and stable investment environment, conducive to the rational use of photovoltaic power generation development scale. Electric power system reform pilot explore. In the electric power system reform pilot area, explore innovative photovoltaic power management mode. Benchmark price on the Internet, combined with the development and utilization of renewable energy in the National Energy Board to establish objectives guide the system’s guidance, establishing quotas and green certificate trading scheme to encourage PV companies involved in direct power-purchase deal, according to the price level of direct power-purchase deal, a modest reduction renewable energy subsidies.
Analysis: power reform, integrated in the overall design to renewable energy development needs, according to local conditions the balance renewable construction scale and subsidy funds. Because there is no experience to follow, and pilot testing of the effect to be, needs to be adjusted according to the implementation step by step improved.
Original title: PV study on annual scale management and subsidies