Polaris solar PV net news: photovoltaic power plant yields usually above 10%
Photovoltaic industry has become a calling card industry following high-speed rail in China, absolute leading position in worldwide. However, in Europe and the two-handed backhand, and under the influence of excess production capacity around the world, edge of the PV manufacturing industry is struggling to recover in the upper reaches.
Construction of photovoltaic power plant in China in terms of volume and speed are booming. National policy encouraging the development of PV-representative of the new energy power generation, and to change China’s energy structure dominated by petrochemical combustion. The latter is the main cause of smog formation. Of course, also through construction and raw materials to dissolve upstream PV manufacturing capacity.
Due to stable electricity, electricity pricing, PV power stations are considered to have a stable income in the operating cycle, the internal rate of return is usually above 10%. Through a power station in Hebei power condition is calculated in the year 1500 light hours, benchmark 1 Yuan/kWh electricity price and other conditions, the plant’s internal rate of return of up to 11.77%. To rough estimates based on 30% ‘s own money building a 1GW solar power station, to nearly 8 billion yuan of discounted cash flows, corresponding to 8 billion yuan of market value. And as future interest rates downward and discount valuations have further yield advantages and improving trends.
Good PV power plant construction and operation of enterprises
Power station is one of the difficulties to obtain the project’s capacity-building, including being called “flagging” project approval of the license. Power station construction the second difficulty is that financing. Financing costs during construction before the problem is its hard to raise grid. Complicated examination and approval and funds of hundreds of millions of Yuan, forming a barrier into the power plant construction. Only professional enterprise in the industry or related businesses with good cash flow, strength development of power stations. Given the stability of photovoltaic power plant high-yield characteristics and high barriers to entry, we look downstream photovoltaic power plant construction and operation and maintenance of the enterprise, particularly in resource grab and capital has to have the benefits of the project.
Original title: PV PV industry hard recovery concerns