Green certificates needs new energy quotas support

Arctic star solar PV network news: recently released of on pilot can renewable energy green power certificate issued and the voluntary subscription trading system of notification, on green certificate of issued and trading, made provides, green power certificate since July 1, 2017 up official carried out subscription work, notification clear wind electric, and PV power Enterprise sold can renewable energy green power certificate Hou, corresponding of power no longer enjoy national can renewable energy electric price additional funds of subsidies. In case of clear voluntary participation, how to arouse the enthusiasm of purchasing green power certificates, is the key to promoting green electricity certificate.

Present goal is to non-fossil energy in primary energy consumption by 2020, increasing its share to 15%. To meet this goal, despite the current weak growth in demand for electricity, but some time in the future the Government will strongly support the policy level wind and solar energy development. According to the 2017 national energy work Conference goals, to achieve new wind power installed capacity in 2017, 20 million-kilowatt and PV installed capacity 15 million-kilowatt. China renewable energy development goals clearly, policies supporting strong, and China has the manufacturing capacity to accomplish this goal. But how to accomplish set goals effectively and economically, depends to a large extent the Government’s planning and policy design.

With the rapid growth of wind power, solar scale, abandon light wind up becoming the core issue in China’s new energy development. Statistics show that in 2015, China abandoned the wind up when the total was 38.6 billion-kilowatt, up wind up is 14.6%. 2016 1 in June, when China abandoned total wind up of 37.1 billion-kilowatt, close to the annual level of 2015, abandon light wind up is 19.6%. With prorated all of 2016, when China abandoned wind up light up to about 70 billion-kilowatt. From the perspective of power on hours, 2011-2016 wind power generation hours decreased year by year, hours of wind power decreased 1920 hours from 2011 to 2016 in 1742 hours PV from 2013 1368 hour in 2015 to 1133 hours.

Judging from the current situation, the new energy price subsidies have been able to meet the cost of renewable energy development, subsidies will be reduced year by year in the future, new energy subsidies lag issues are relatively easy to solve. Main conflict focused on new energy development abandoned wind up light, light background and the need to abandon wind up on a large scale more quickly expand the scale of difficulties.

First, the oversupply of power industry as a whole is an important factor now abandon wind up. 2015 national average utilization hours of power generating equipment of 3,969 hours, the lowest since 1978 in 2016, will be further reduced. Electric power industry, new energy industry’s profits will be sorely tested. From the point of view of electricity demand, the need to reduce the new energy development goals.

Secondly, the abandoned wind up despite some technical reasons, but even more crucial is the market. Abandon wind up at this stage the paradox of light generation and load spaces do not match. Northwest Territories rich in renewable energy endowment, but demand is limited, cannot scale to eliminate new energy power in the region. The “Thirteen-Five” plan has been clearly put forward “new energy East” strategy, new energy generation in particular photovoltaic development priority gradually slopes towards the distributed, to the Eastern and central areas. East Central region market capacity, capable of carrying larger volumes of new energy power generation. However, the new energy resources are relatively limited in the eastern region, the need to develop distributed, distribution difficulties, distributed development goals set by the Government are often out of reach.

Therefore, in order to complete the proportion of non-fossil energy in primary energy consumption by 2020 15% target, needs in the context of low power demand remains the rapid growth of renewable energy, relying on voluntary green power certificates obviously difficult to solve the abandoned wind up phenomenon, you need to consider implementing a more robust measures.

Therefore, the notice clearer since 2018 initiate renewable electricity quotas check Enforce constraint and green power certificates trading. In the electric power industry as a whole under the background of oversupply can really effective measures to deal with abandoned wind up light is the implementation of renewable energy quota system, and the certificate of the trade quotas can provide flexibility, reduce the costs of mandatory quotas.

It can be said that the quota system (green power certificate) and price subsidies to support two mechanisms for new energy development. Electricity price by directly pricing allow investors access to stable and predictable earnings and quota system (green power certificate) more through market mechanisms will guide enterprises to develop new energy at the lowest cost. Online pricing policy generally applies to the initial stage in the development of new energy, and quota system more suitable for mature stage of development, we support the development of new energy in the future should be the on-grid price policy used in conjunction with a quota system.

Renewable energy quota assessment and green power certificates to enforce constraints required to consider the following aspects: first, from renewable energy quota system bearer, bear the principal can be a power plant or power supply enterprises. If it is a power plant as a bearer of, generally take the form of buying renewable energy certificates, quota compulsory costs transfer to conventional power plants.

Power sector reform currently under way, the core is opening electricity sales market, which as bearer of the basic conditions for power supply enterprises. Sale under the condition of electricity market opening, as a bearer of power supply enterprises to adopt a more flexible approach would cost quota obligations through the end sale price for guidance. Second, in the allocation of quotas for renewable targets, need more resource conditions, regional economic development, as well as the region’s power grid. Third, support for renewable energy development, the operation of the quota system more flexible mechanisms, based mainly on electricity market mechanisms to regulate.

Of course, the operability of the quota system will also be under the influence of electricity market reform process, because the quotas and green power certificates through the market operation mechanism is required to ensure quotas effective transactions. China new energy development clearly has gone beyond the initial stage and entered the stage of mature development requires coordination of electricity market reform, energy policy by the new single price subsidy policies towards price subsidies and quotas implemented. Particularly in the context of relatively sluggish growth in electricity demand, quotas can improve the competitiveness of renewable energy, effectively abandoned the wind up. Moreover, the quota system through market means, allowing additional costs to transfer to the consumer end of the market, reduce the impact of changes in subsidies for new energy development.

Original title: green power certificates requires new energy quotas support

Posted in Solar Charger.