Polaris solar PV net news: focusing development more than a year, zhongmin in the operation of its new energy investment platform-new energy investment limited (hereinafter “new energy”) is arguably a dark horse to become China’s PV industry.
Established more than a year since the mansion has 8 provinces in the country had invested nearly 20 PV projects, by the end of 2015, a total of 1.4GW national PV record index, record in the total installed capacity of photovoltaic power station in the country’s nearly 10% per cent, among the annual PV projects first filing capacity. Behind the rapid growth and development, is a new unique self-development and investment combination, large combination of ground power and distributed power plant development strategy.
“In the future we will increase the distributed (power plant) in Central, Eastern and southern area of the layout, walking on two legs in the West, select layout on the output channel and output point, the other is in the West of the main pioneer of pro-poor and plan these two cards. “An interview, new President Han Qinghao said.
Position in developing downstream photovoltaic power plant in the new, rapid development of the photovoltaic industry, China is now in a draught. Last year, China PV cumulative installed capacity has reached 43GW, over Germany as the world’s largest PV power station installed capacity of the country. According to the National Energy Board’s development plan, by the end of 2020, the national total installed PV power will amount to 150 million kilowatts.
But sailed under the environment of generally private enterprises engaged in capital-intensive PV power station construction is also facing challenges. Installed capacity of photovoltaic power station 50MW required investment could be as high as 400 million Yuan, and the acute shortage of electricity in the West development of photovoltaic power plants, also face blackouts/reduced price delay and price subsidies in place multiple cash-flow pressure.
In accordance with the new investment policy, during the first two years, 40% of the capital will be invested in the power station in Northwest, which means mansion could also face power rationing and price subsidies to two uncertain factors.
“Power supply and demand is the root of the problem, we risk model will take into account a certain amount of power, in certain power can still achieve the target rate of return. “Han Qinghao blunt, in the people new can of” PV + “mode has more high of anti-power risk capacity, first in power station location Shi, in the people new can tendencies select conditions better of area, for example has output channel of Ningxia, power saturated of situation Xia can turned lost to Zhejiang or Shandong; second is rely on itself scale advantage, improve bargaining capacity reduced cost and pulled high output.
Electricity price subsidy delay and new energy enterprises faced problems over the past few years, pricing subsidies average delay of 1.5 years from 2013 to 2015 average delay more than 1.5 years.
“We realize scale operation, is to combat the uncertainty risk, (delays in price subsidies are) new energy companies will meet the phase problem, but only temporarily. “‘ New Executive Vice President Wang Jian pointed out that new emphasis on marketing, rather than rely on State subsidies, overall market trends and also requires new energy enterprises through technological progress and technology, continuously improve the efficiency of power generation, increasingly compete with traditional fossil fuels to achieve parity.
Han Qinghao disclosed, in accordance with the new internal stress tests, in the case of electricity price subsidy delay 1.5 to account, the company’s cash flow can be maintained at a normal level, coupled with increasing of distributed power plant layout, and scale advantages brought about by high bargaining power, basic electricity price subsidies to avoid this risk.
Scale inputs and volume of construction, so that new form of “two low and one high” advantage, namely components and lower management costs, lower capital costs and high efficiency. Domestic PV projects mainly rely on bank loans to fund 20% enterprise’s annual financing costs in the 8%-10%, some even more than 12%. But Wang revealed, scaled back investment advantages in itself, so that new funding cost comparable to state-owned enterprises.
Billions of ambition
Start of 2014, new can was set quite ambitious goals set in–the investment of about 100 billion yuan in five years, the “Thirteen-Five” time installed 12GW, which accounted for 11.23% of the total national installed capacity, in addition to about 2GW average annual new installed capacity, accounting for about 10% per cent of capacity.
Last year, the new energy investment in yanchi County of Ningxia’s new demonstration zone project scale up to 2GW, when completed will be the largest single photovoltaic power plant in the world, currently first 350MW has been completed. Han Qinghao said new energy also plans to increase the installed capacity to 3GW at the end of this year, further to 2020 to 12GW.
However, with construction completed resale strategy is different, said Wang Jian, built new can not sell photovoltaic power plant. “In the current environment, (PV) is a good asset, under the global economic downturn and the downward trend of interest rates, markets lack a robust asset allocation, and a longer duration of power plant assets are favored investment with insurance funds. “Wang Jian pointed out that people can hope to build a new energy and new fields of application platform, starting from the downstream led upstream development.
At present, domestic PV development enterprise is characterized by fragmentation, over 90% enterprises belong to a small amount of private enterprise, not economies of scale and lack of technological advancement and improve the management level of the basic conditions. Wang believes that contrast is that CIC’s new capital, although the photovoltaic plant itself yields on a CAP, but under the integrated investment cast plates, can be seen as stable long-term bond returns, as a long term asset.
In accordance with the new investment strategy, in the first two years, in addition to investments in the ground station in the West, in the eastern coastal and efficient distributed power station battery, smart grid investment 30% financial. Han Qinghao said new energy for PV power plant in upstream industries will also consider, where appropriate, financial investment.
Recent road show in Hong Kong in the process, new business models and innovative strategies have also been recognized by overseas investors, Wang said companies with overseas investment and investment institutions will also explore possible modes of cooperation to jointly develop new energy markets abroad.
Original title: new “PV +” ambitions