Subsidies slashed local PV Savior

Polaris solar PV net news: as approval (filing) decentralization to the local, like photovoltaic power generation in the future the subsidies also need local commitment and support. And the extent to which local governments can give support, will be key to whether electricity prices downward impact.


Subsidies slashed local PV

Recently watched PV electricity price adjustment, is becoming clear.

According to the national development and Reform Commission issued the circular on adjustment of new benchmark price notification (draft for soliciting opinions), 2017 new benchmark new photovoltaics price dropped significantly by type of resources of 0.55 Yuan, 0.65 and 0.75 Yuan in 2016, representing a benchmark for price declines, respectively, and 31%, and 23%.

In addition to the ground station of the subsidies were slashed, a distributed PV is not immune, not only in terms of subsidies is no longer the one size fits all the same price, but refers to patterns of plant resources to differentiate, and each resource area of subsidies have been slashed.

Although only draft, there is finally a certainty, but the different adjustments for the new benchmark price of energy, PV is “hurts the most”. This sign is likely to herald a large policy shift, the new energy subsidies under limited circumstances as a whole, the allocation of subsidies or will no longer be “flood irrigation”, but focus on new energy projects with generating capacity advantage tilt, such as wind power.

Meanwhile, revealed in the draft of the second message is that as the PV power station construction approval has been previously (filing) decentralization to the local, like photovoltaic power generation in the future the subsidies also need local commitment and support.

Therefore, the price cut will bring much impact of the photovoltaic industry, whether the industry can afford, might also want to look at the local Government’s support. After a few local governments have introduced additional subsidies, should not be too optimistic about this.

Given color or bright or dark places protection of the photovoltaic industry, possible future trend is the PV manufacturing industry and photovoltaic applications appear highly areas overlap. In other words, for photovoltaic manufacturing for underdeveloped regions, have little power I’m afraid local subsidy policies soon. This probably means, PV on the regional development, be more centralized.

Subsidies are no longer “artificial flooding the waters”

On the current situation of power industry, traditional fossil fuels and new energy, as well as between the different categories of new energy, the degree of competition and competitive, increasingly obvious already.

The draft, to a certain extent, already implies the future policy orientations.

According to the draft, benchmarking prices mainly photovoltaic and wind energy. Different from the PV, the benchmark price of onshore wind adjustment cycle is biennial, so this is 2018 onshore wind power certainly price, on the basis of their reduction by 2016 down three cents for each resource area.

Worth noting is that onshore wind cut benchmark prices at the same time, but at the same time introduced support measures for offshore wind. That is, prior to December 31, 2018 and commissioning of offshore wind power project price is 0.8 yuan per kWh (including tax, the same below), wind power project price of intertidal to 0.7 yuan per kilowatt hour.

Hatchback comparison is not difficult to find, for wind power, while also facing price adjustment, but whether it is a buffer period (until 2018 for new pricing standards), was also introduced support measures for offshore wind (incremental), even though the price on the wind power industry will have a great impact, but its receive buffer space is larger.

Perhaps, this has an implication behind the adjustment of a subsidy funds, that is, in the context of overall funds to make ends meet, tilted to the kind of clean energy generation has advantages.

It is obvious that for photovoltaic electricity is a weakness.

From the National Bureau of statistics showed that the first 7 months of this year, solar power 21.1 billion kWh, an increase of 27.5%. The contrast is, wind power has been beyond, dominates the first spot of the new energy power generation, power generation reached 120.95 billion kWh, is almost PV 6 times.

On top of that, in terms of capacity, in addition to the wind outside the far left behind, even the “almost unknown” biomass power generation, power has been catching up with PV, reached 19.24 billion kWh.

In statistics the percentage of power generate data, percentage of wind power reached 3.7%, solar power, biomass power generation is 0.6%.

“Savior”?

However, for the PV industry, while the national price subsidies will be cut, but don’t forget, there are local subsidies.

Comprehensive analysis, some subsidies for PV power plant is not less central. Especially in the eastern provinces, and can even enjoy the provincial, city and county levels and subsidies.

Therefore, for photovoltaic industry, power station construction approval as previously (filing) authority to place, its subsidies as well as local commitment and support. And the extent to which local governments can give support, will be key to whether electricity prices downward impact.

Is the so-called “non-profits didn’t get up early”. Light color or bright or dark places protection of the photovoltaic industry in the future, PV manufacturing and PV Application market development regions, very high degree of overlap may occur. In other words, for the most part where there is no development of photovoltaic manufacturing, it is difficult to expect too much power to local subsidy policies soon. This probably means, PV on the regional development, be more centralized.

On this logic, put it another way, if it is to persuade local governments to mobilize additional financial resources to support the development of PV power station, the key may lie upstream activity in the manufacturing sector. After all, whether it be employment, tax aspects of PV value created by the manufacturing sector were well above the power station area.

Original title: subsidies slashed local PV “Savior”?

Posted in Solar Charger.