Polaris solar PV net news: October 17 is “international day for the eradication of poverty”, as well as our national “poverty day”. This year’s “poverty day”, the national energy Bureau, the poverty alleviation Office of the State Council issued by the two ministries jointly issued a circular on the first solar project: notice of domestic photovoltaic power stations projects ushered in policies for poverty alleviation in the spring breeze.
PV encounter poverty, both sides seem to see hope from each other. But a touch down, local governments, businesses and households has stirred into a pile of mess. If you want to gain the benefit of the parties, PV poverty alleviation the “broken” combination of a lot of controversy.
Jinzhai County is located in the western part of Anhui, located in the provinces of Anhui, Hubei and Henan border region. There used to be known as the “unruly” area. Turbulent era of revolution, and make it out of the Group of revolutionary fathers. Now here is the big “County General”, from here go above the rank of major-General General unexpectedly is 59. However, the back, and now the generals are gone, but poverty still plaguing people living on this land.
In April this year, XI Jinping studied in jinzhai County, General Secretary, General Memorial is on the one hand, on the other hand is also very interested in jinzhai County, the poverty-relief work. In its report, you can see such pictures, poor yard, XI Jinping, shook hands with poor kind, behind two pieces of one man, how much photovoltaic panels. At the time of inspection in jinzhai County, poverty alleviation, XI also asked the photovoltaic power generation for poverty reduction, PV poverty has become an important part of many kinds of poverty alleviation.
Area in jinzhai County, was among the first PV to poverty alleviation, in jinzhai County in PV on poverty alleviation also accumulated a lot of experience and lessons learned in the development, forerunner is the PV to poverty alleviation.
Entered in 2016, in order to deliver on commitments by 2020 out of poverty and poverty alleviation into large-scale development phase. A sudden, IPO poverty reduction, poverty alleviation, and more new terms sprung up. Photovoltaic is for poverty alleviation in this context, come to the forefront of history.
Wang Jiahua, Vice President of the Association for volunteer services for poverty alleviation in China, told reporters, poverty alleviation Office under the State Council entrusted specific docking Services Association top ten precise poverty reduction work, photovoltaic poor bear the brunt. From planning, PV will move the 15-20GW scale for poverty alleviation, led 2.003 billion poor people out of poverty.
Indeed, in parallel with the work on the agenda for poverty alleviation, photovoltaic industry are quietly changing the wind, PV poverty appears with increasing frequency, PV discussion poverty is rife.
For the PV industry in 2016, is the year of change. 630, fewer and fewer big projects, leader plans competitive. Everyone’s looking more and more towards a distributed PV and photovoltaic projects. And PV pro-poor policies are better than distributed PV projects, from the perspective of photovoltaic, PV is a certain attraction for poverty alleviation.
But judging from the present situation, PV pro-poor development is ambiguous, in the process encountered a lot of problems: insufficient policies, integrated planning is not clear enough, funding uncertain, PV quality assurance and poor income protection, and so on.
Photovoltaic energy for poverty reduction do to contribute? Poverty alleviation but also for the PV industry much good? State and local governments and what should be done to make PV enterprises willing to enter this market? The issue is a controversial one. With these questions, the energy magazine in September visited the PV industry’s small and large businesses, and depth with the poverty alleviation professionals in the field of communication, trying to restore the real PV for poverty alleviation.
Household PV embarrassment
Mountains around the village of jinzhai, the army distributed the full-bodied natural breath, poor Chen Louzhi stood in front of their photovoltaic panels, although it does not know how to work the Blue Board is, but she knows that this not much bigger than the bed Board brought her thousands of Yuan of income each year. It is a residential photovoltaic system, the electricity generated is used to help the poor out of poverty.
In fact, PV has four types of poverty, household, village, agriculture greenhouses and ground station, in jinzhai County, you can find almost all PV poverty reduction types that you want to see.
Jinzhai County, beginning as early as 2013 PV for poverty alleviation. In recent years, the jinzhai PV poverty relief process through several stages, household and village level or ground station, in jinzhai County, can be said to be PV poverty a fresh sample.
Hang Yu, Executive Director of energy Ding Wenlei told energy reporters commented: “from 2013 to 2014, in jinzhai County, first made more than 10,000 household PV system, which is equivalent to the first stage. From 2014 to 2015, entered the second phase, started village-level power stations. Because of jinzhai County, sparsely populated, developed a number of village-level power stations from 2015 to 2016, centralized power stations of the third stage of evolution, like 200MW project before. ”
In June, the jinzhai County people’s Government released the photovoltaic accurate implementation plan for poverty eradication in jinzhai County, construction 200,000-kilowatt terrestrial photovoltaic power stations for poverty alleviation programmes explicitly; develop distributed (lianhu) photovoltaic power plant for poverty alleviation. 23 townships, each site building size 200-kilowatt-600-kilowatt, a total of 15,000 kW; expansion of village PV power plant for poverty alleviation, 218 villages PV capacity to 100-kilowatt.
Jinzhai PV pro-poor development is rich, all the way down, all types are present. Household system truly poor families, poor village of village-level power station. However, the dispersion of two power plants, operation and maintenance is a problem. Who is going to operations? What operations? Are the equipment manufacturers? Also related to poverty reduction by forming their own maintenance team or poor to be held responsible? If large scale the two modes, it is indespensible problem.
If this is the type of centralized power stations on the ground, then the operation will easily be guaranteed. But due to the more profitable the investment business, the ultimate proceeds can truly serve the poor, accurate poverty can become a problem.
“Household PV power station has a lot of limitations on poverty reduction, photovoltaic power plant is 25 earnings, but really poor House and roof-top structures were in poor condition, it is difficult to guarantee normal operation of photovoltaic power plant for 25 years. In either mode, power quality is the key for poverty alleviation. “JZ type new Deputy General Manager Liang Can talk about photovoltaic energy poverty, said. In interviews, many companies are deeply felt, in actual operation, household poverty alleviation project there is all kinds of resistance.
PV how poverty, Liang Can also told reporters: “we are doing a project using a new form of non-territorial poverty reduction project in Hubei Province, Hua Tao Zhen XI Cun, scale of 800KW. Poor power station is not in the poor home or building in the village, but built in the town of enterprise on soil-plant on the roof of the old Han group. “This form does not need to consider the question of land, can make plants maximize revenues. Contract energy management, power generation for use by businesses, not like a village-level power stations all Internet access. Industrial electricity prices higher than the PV price, poor yields the corresponding expansion of the power stations, the poor can get more revenue.
Trina solar PV Wu Wenquan thinks in the Office for poverty alleviation, small and scattered small power station for household use, construction, maintenance is difficult and poor roof structure, bearing capacity, life is difficult to obtain, and use the influence of the security. Trina is relatively more inclined to village collectives and centralized power stations on the ground. Relative to the power stations, collective and the advantages of centralized power stations is, relatively concentrated, low system cost, ease of management and operations, with higher returns, more long-term stability of poor earnings, corresponding disadvantages is of course on land resources and grid access hardware requirements (especially in large centralized power plants on the ground).
It is easy to see, now residential photovoltaic mode is not welcomed by enterprises for poverty alleviation. From the business and the situation of the poor, village-level power stations increasingly recognized, and countries are the main push now this form of poverty.
“Overall policy trends is currently supported with village-level power stations as the main mode of layout ‘ Thirteen-Five ‘ PV anti-poverty work. While, in principle, to the village of the province submitted plans no target limit. “Xu Jianmin, Deputy Director of the State Council’s Office of poverty alleviation and development guidance Division has said publicly.
According to Bloomberg new energy finance statistics Tracker, now the national PV cumulative size of about 300MW of projects for poverty alleviation, and 80% is in the form of concentrated power. Although centralized power plants accounted for more than 80% of PV installed capacity for poverty alleviation, but most hope to promote or village-level power stations. As regards the use of agricultural greenhouses and barren form of construction of power stations, covering issues such as agriculture, land, and finally can step onto the big stage has yet to be considered.
“Village-level power stations may be a challenge for rural power grid, if large scale power plant at village level, issues related to agricultural network transformation, which can fit in is also a problem. By contrast, centralized power stations although volumes also, but the location will not necessarily be in the poor village of local, is likely to land conditions permit, access to places with better conditions. “Liu Yujing, Bloomberg new energy finance analyst told reporters.
Household is the most accurate type of poverty, but because of operational difficulties, the development met with great resistance, power stations or even the ground station at the village level was evident. But no matter how PV poor shape, all PV are faced with the problem of money on poverty reduction, funding sources and future earnings determines to a great extent to PV to poverty alleviation.
Where did the money come from?
“Is absolutely the Government investment in building power at the village level in Jinan City. “Ding Wenlei participated in Jinan PV process of drafting and implementation of poverty alleviation programmes. Jinan EPC contract will be used for construction, municipal finance in 2016, 2017 and 2018 staging to allocate funds for construction and the corresponding interest.
However, not all the places are so, Yunnan and Jiangsu has adopted a poverty alleviation fund + household Bank loan model in Guizhou poverty alleviation funds advance + enterprise, Anhui poverty alleviation fund + local investment companies paid … … However, because payment is too slow, yields are lower, Bank lending for such projects was not cold, practice and complex procedures, advance you indirectly increase the operating pressure of the enterprises and companies.
PV is, in essence, the State will transfer funds and policies for poverty alleviation to the photovoltaic industry, enterprises through the construction of projects to achieve the profit and help the poor. Most important, but also issues of most concern is the question – where did the money come from?
Trina’s Sales Director Zeng Yi, told reporters: “there are several ways, first is a national poverty alleviation fund, government money, business investment, government money is transferred into the hands of the poor. Also poverty alleviation projects in low-interest loans, the State has a large number of low interest loans for the poor, enterprises should enjoy this part of the policy interest rate is 6%, low-interest loans can be 2% or 3%, extra funds the interest as income of the poor in the middle. ”
Why do companies willing to do PV poverty? This is based on the Government grid used to dealing with difficult issues such as problems on the basis of good, this indirect cost saving of the enterprise project. The source of funds, may be one way, can also be a combination of several forms, to transfer the value to farmers.
While State and local Governments provided matching funds for construction of the line to support, but the central policies difficult to materialize, local government funding gap in some areas. Bank lending and preferential margins were not fully in place in a timely manner will result in part of higher financing costs, or due to lack of funds, or slow, or forwarding business requiring Fund, further increasing the burden on enterprises for poverty alleviation, which affects the poor construction of the power station itself.
A case study of Shanxi province in 2015, pilot, a 100KW village, Shanxi province, power station, with an average investment of 800,000 yuan, the province plans set at 500,000 yuan, 300,000 yuan funding gap, needs to sort itself out. Local governments, mostly take the form of Enterprise Fund. Organizations bid on each ground station construction in linfen city enterprises, building 1 pilot 100-kilowatt photovoltaic power plant and make up for a funding shortfall and 10 pilot village PV power plant construction, hunyuan gap funding, all by the construction Enterprise Fund.
Wu Wenquan told reporters that PV effectiveness depends on financing of pro-poor policies and financing costs three types: household and village level, large PV projects are the primary problem facing financing difficulties, low financing costs is the prerequisite of photovoltaic projects for poverty alleviation.
CDB, ADB as five ministries jointly issued a document on the implementation of views: counterpart of photovoltaic power generation poverty reduction policy and financing, the rules are formulated too harsh and not in compliance with the policy’s basic functions. Such as the agricultural development Bank of China PV poverty alleviation loan management procedures (trial implementation), the conversion of private and mixed enterprises as the last sequence, and runs counter to the spirit of the Central Treasury’s PPP policy, improve and increase the threshold for poverty alleviation and social equity participation costs.
Decline in local government debt under the credit, and low interest financing Government-guaranteed top design “paradox”. , City and County Government due to high debts cannot be guaranteed, local government finance, “promises”, “nothing” appeals, conflicts with the actual policy banks low-interest loan guarantees. Second, some local governments “empty gloves” PV project as “flesh”, due to huge financial liabilities deficit, no investment intentions or to be “promises” for businesses “back to back” 15% guaranteed discount.
Not only financial problems, and subsidy issues. National commitment subsidies not in arrears can really do that? The ground station, distributed power subsidy arrears people had to ask there, and so many of the large centralized power plants if used for poverty alleviation, if you can be open-ended.
Due to financial problems, when PV began development for poverty alleviation and local small businesses together, resulting in the low bid and quality issues make PV poverty alleviation even more confusing.
The feast of small business
2016 flood was fierce. Super police floods in the country’s more than 300 rivers, 150 counties (cities) breakthrough in the same period of precipitation extremes. Bad weather is not only to people in the city brings the trouble also caused trouble to the people in poor areas. Many typhoons and floods this year, a lot of photovoltaic power stations for poverty alleviation, failures and damages due to quality problems, caused great losses to the poor and poverty reduction.
Wu Wenquan on energy reporter said: “PV poverty is a can continued 25 years above of poverty project, but in actual poverty project tender, and construction, and run process in the, due to lack on power station system and products of quality technology requirements, and effective detection supervision means and after of punishment measures,, also on cannot avoid appeared minority PV poverty project non-normal of low price bid, and shoddy of situation. “For example, low efficiency (or defective) component, choose quality assurance equipment, buy inferior bracket and cable, or subcontracting to unqualified enterprises and construction.
In 2015, the national average individual household PV prices in 9-11/w, be not less than the minimum of 8/w, but the bid quotation of around 6 per watt, this year there are about 5 quotes. If you are using good equipment, prices be so low, this will make it difficult for quality and stability is guaranteed. “They just want a project to earn money, don’t care for decades in the future. ”
So poor, even though, unlike the 2009 “solar project” as prior subsidies, but the same policy using inferior products achieve the purpose of profit, the result is just as bad.
In August, dezhou city in Shandong province economic development zone held a special solar bid for poverty alleviation. It was reported that the requirements of the tender is very different in the past. General bidding competition power plant cost weights more than 50%, and the bidding proceeds accounted for poverty alleviation in the power station 50%; power station built in the past after the acceptance of payments made 90%-95% Government, the rest paid off at the end of the one-year warranty period; and subparagraph requires staging the tender knot, winning bidder during the operating period of the project on its own operations, profits and losses.
Dezhou city in bidding on the “innovation” can be said to be compelling, quality problems to some extent put an end to the phenomenon of low bid, to PV projects end up benefiting as a bid. The problem is that even though they may have no power in the local small enterprises, for successful construction and operation project enterprise, however, installments, yields will be a big challenge.
As an Act, designed by local city and county governments, local enterprises will have a certain advantage, are also related to this long-term localized and poverty reduction. Coordination of county-level administrative capacity of photovoltaic power and traction to poverty alleviation is not matched, if you want the specification development, rose to municipal or overall coordination. The only way to avoid local protection for small businesses, tender and construction of photovoltaic projects more standardized.
State documents, PV is not small in scale in the coming years for poverty alleviation. In December 2015, the National Energy Board releases the solar energy Thirteen-Five development plan draft, stating that “Thirteen-Five” period PV projects for poverty alleviation in China will total 15GW. Overall scale of poverty alleviation projects in addition to the ground about 10GW, distributed PV scale 5GW for poverty alleviation.
However, detection of PV power station is a new thing, is a high-tech applications, require appropriate professional bodies, help effective inspection and supervision policy, to guarantee their quality. Quality is controlled, the key is the need for a strict standards to control.
PV poverty is actually begun this year, nobody is willing to do before, or are small enterprises do. But with the 2016 solar heating for poverty alleviation, large enterprises outside the competition leader and layout distributed, also began to focus on PV for poverty alleviation. However, big business wants in the PV area of poverty reduction to colonize Earth is so easy?
Big business calculations
The end of July, held in China Association of photovoltaic “2016 review and Outlook in the late half of PV industry in the first half of” on, China Volunteer Association Vice President Wang Jiahua said: “we have the list, almost can not see big business figure. Butt, land issues are there, but the poor returns of about 20 years, if you do not have the strength of enterprises to enter the area of poverty reduction, PV product quality problems will occur and the poor earnings sustainability issues. ”
In September, senyuan electric, Eicon Technology, longi stake, lion technology companies such as PV poverty reduction intentions or agreement reached with local governments, will get more than 20 years of operating income, become a new growth point of operation.
It can be seen that large enterprises for photovoltaic projects are not exclusive, greater consideration is whether the projects can make real profit. If the market is good enough, State policy conditions detailed in the feasible, why don’t big companies do?
“Poverty alleviation projects in small and dispersed, spend big energies than big power station, the participation of large enterprises small. But now we have begun to focus on PV poverty this piece of the market, has become more difficult because the ground power station and leader and the competition is fierce. “Liang Can told reporters.
Also in photovoltaic Association on the prospect of the end of July, and hydropower planning and design of water conservancy Institute new energy Department Deputy Director Wang Jixue said PV from 2013 for poverty alleviation since its official launch, size is not large, the biggest may be released in the second half of this year, several GW and was to consider the matter. According to this prospect, PV projects also appears at the end of the year blowout.
According to Wang Jixue introduced, statistics in 11 provinces reporting project bigger than 15GW, about 85% is focused on power plant, 14% is the household system and village-level power stations, distribution between the province and the province is different. According to General control Institute and the State Council poverty alleviation Office, State grid and China Southern power grid to pick, if makes the second half of the release time, in order to complete the requirements and tasks related to the PV project of helping the poor have a certain volume.
But how can large businesses willing to participate in the PV for poverty reduction projects? Zeng Yi, told reporters: “PV poor difficulty is how to balance local governments and investment relations between the institutions, businesses and ordinary citizens. Company’s own interests how do? Can not simply requires companies to let. ”
Moreover, the implementation process is also problematic. Poverty alleviation projects are very small, to each of the County’s business is not able to perform? Overly dispersed large enterprises cannot participate in, are some of the small businesses, had improved quality cannot be guaranteed. Should be in the context of a relatively large operations, harmonized technical standards program, and tenders for the uniform. Operations management for a long time at a later stage, formed a certain scale, large enterprises are more likely to intervene and carry out the work.
“Solar PV is a very professional industry, no county-level professional and technical capacity to organize the check, or need to have a certain scale, relatively concentrated, professional strength of the company is willing to come in. “Zeng Yi said.
Recently, the solar Union is to set up for poverty alleviation, the purpose of nature is also hoping to get big business involved, all the enterprises to cooperate. For a tender, participate in the subject, project construction and operation modes, PV needs a clear set of standards and systems for poverty alleviation.
PV combination of poverty alleviation and apparently is not smooth enough, and in most cases is a bad combination, PV want to benefit from poverty alleviation project there are many barriers and poverty alleviation of poverty also requires stronger through photovoltaic PV power access.
Original title: first solar project released but we can’t ignore the controversy over how to solve?