0 45 Yuan low PV electricity price opens the prelude is parity or price war

Polaris solar PV net news: the end of October, wuhai city, Inner Mongolia solar “leader” bid for the project, the industry as a result of the surprise Super low prices and caused widespread concern: Yingli was 0.45 Yuan/kWh, GCL new energy were 0.48 Yuan per kilowatt hour, PV on-grid price into the “4”.

Such low prices, is the industry’s efforts for years of PV and cheap Internet access finally kicked off, is also opening a new round of price wars? Chinese net finance call this “minimum price”–to the latest author Yingli, its officials say, the current project is still in the stage of publicity, not disclose details, but when Enterprise offers has its own considerations, including their own ability and cost of, the company will respond after the project publicity on the relevant circumstances.


0.45 Yuan low PV electricity price: opens the prelude is parity or price war?

“Competitive” is not necessarily vicious competition

0.45 Yuan/kWh, wuhai PV “leader” bid low prices has been going on in the industry was “crowding the screen”, compared to the benchmark price and PV pricing close to “cut”, even compared with thermal power prices, also has the same. According to the latest December 2015 of the national development and Reform Commission adjusted price, China’s net financial measure that, 31 provincial power grid new benchmark coal price average 0.3644 Yuan/kWh.

“Low prices” this year 8 photovoltaic “leader” high frequency words in the bid for the project. August Shanxi yangquan lead who tender in the, Association Xin new energy to 0.61 Yuan/kWh of low price raised concern, one months zhihou “0.61” on into has past type, China electric and prosperity day electric in baotou lead who bid in the reported out 0.52 Yuan/kWh, shortly thereafter is October end of British Lee in wuhai bid in the reported out 0.45 Yuan/kWh, has media called “hell price”.

Worth noting is that this “lowest price” creator–Yingli, a recent respite from a debt crisis. At this super low price bidding project, will increase the burden on enterprises?

Yingli Wang Zhixin, head of public relations of net finance in China, the current project is still in the stage of publicity, do not disclose details, but when quoting certainly has its own considerations, including their own ability and cost of, the company will respond after the project publicity on the relevant circumstances.

2012-2013 period, the slide into total depression of the photovoltaic industry, the reason is the sharp expansion in capacity causing prices to plunge, while industry malignant competition prevails, corporate debt ratio rose, former Giants – PV Suntech and LDK is falls in the this period.

The industry believes that this “leader” bid low prices, you can call it low price competition, but not necessarily vicious competition. Generally, as long as it doesn’t price below cost, it does not constitute a vicious competition. Energy Research Institute, national development and Reform Commission, said during the original researcher Wang Sicheng in 2016 China PV Conference, photovoltaic electricity cost about 0.5-0.8 Yuan/kWh, reasonable price is about 0.6-0.9 Yuan/kWh.

PV “leader” project because of its special policy does not fully represent the true cost of the industry. “Leader” programme is the implementation of the national energy administration, starting from 2015 PV special construction plans, planning, specialized construction scale of each year.

“630 after installing tide, from the collapse in demand in the first half in the second half, but more capacity from the many connected conditions and subsidies issued is not optimistic, everyone will scramble for quality projects leader, because the industry leader project not expected widespread power cuts. “A new energy industry analysts on China’s network finance said.

This year’s “leader” very considerable scale of the project, according to the National Energy Board issued the 2016 PV implementation programmes, all new PV power station construction size 18.1GW, where “leaders” programme 5.5GW, accounted for nearly all year round one-third. “630” Installing surge capacity requirements for the year in the first half of excessive overdraft and sizeable “leader” became the Enterprise release capacity in the second half of the best goals of the project.

“Leader in external conditions are better, and save a lot of trouble. “The Vice President of the China renewable energy society said Meng Xiangan of net finance in China.

Meng Xiangan believes that “leader” one low price in the bid cannot be a price war, no need to read too much into it. “Whether 0.48 Yuan or 0.52 Yuan, is a risky process, is through the competition to explore reasonable PV on-grid price range. “Meng Xiangan said.

Industry widely spread with a copies file, that September end of Shi national NDRC issued has on adjustment new energy benchmark Internet electric price of notification (sought views draft), intends will 2017 PV Internet benchmark electric price by original of 0.80 Yuan/kWh, and 0.88 Yuan/kWh, and 0.98 Yuan/kWh cut for 0.55 Yuan/kWh, and 0.65 Yuan/kWh, and 0.75 Yuan/kWh. The decline exceeded industry expectations of Chinese Photovoltaic Industry Association, China new energy Chamber of Commerce to the departments concerned on behalf of the enterprise, such as voice, hoping not to Cliff cut PV benchmark price.

2017 PV how benchmark pricing policy is not known, but the “frontrunner” project series offering low prices, no doubt to some extent will affect the electricity pricing.

Solar parity is the trend

For many years, in order to promote the development of renewable energy, and enhance investment, PV power on have been enjoy policy pricing. 2011 national development and Reform Commission released PV electricity price policy for the first time, uniform approved for 1.15 Yuan/kWh; 2013 national development and Reform Commission, be divided into three types of solar energy resources, corresponding benchmark price of 0.90 Yuan/kWh, 1.0, 0.95 Yuan/kWh/kWh 2016 adjusting benchmark prices again to 0.80 Yuan/kWh, 0.88 and 0.98 Yuan/kWh/kWh.

Policy support, the photovoltaic industry is developing rapidly in China in recent years, costs have been reduced. National Energy Board new energy and renewable energy Secretary said Zhu Ming in 2016 China PV Conference, from the “Twelve-Five” beginning now, PV hardware costs dropped almost 70%, but compared with thermal power plants and other traditional forms of power generation, the cost remains high.

Parity refers to when the transfer of power to the grid PV power station, price level with the thermal power, hydropower and other traditional forms of power generation, this is the ultimate goal of the development of the photovoltaic industry.

Authorities and industry for the PV timetable has prospect of parity. National Energy Board new energy and renewable Liang Zhipeng, Deputy Director at the energy daily in March, said in an interview, appear by 2020 PV power cost decreased to achieve parity by 2025. Concord Group established their own roadmap for parity: in 2019 Midwest photovoltaic costs drop to 0.4 Yuan/kWh, and nuclear power were flat 0.5-0.55 Yuan/kWh in the East, flat with natural gas. Qu Xiaohua, Chairman of Canadian solar PV in 2016 on the reform of the International Energy Forum said hope in 2022, with fossil fuel parity and achieve flare with the price.

From wuhai leader project “4” time price, does PV mean parity has been kicked?

“PV the next cheap Internet access is 100%, but says that two years of parity, it’s certainly too early. Nature, this can be regarded as a low-price competition, that is decided by the industry supply and demand. “The new energy industry analysts on China’s network finance said.

The National Energy Board’s 2016 the annual target for new PV power station construction is 18.1GW (not including photovoltaic projects), and “630” deadline by installing tide, photovoltaic power installed in China in the first half of this year more than 20GW. “The first three quarters of PV installed capacity has reached 26GW. “Meng Xiangan said,” it is likely to trigger a series of problems, such as subsidies to on time, abandoned, etc. ”

The so-called “630” doomsday, new benchmark comes from the end of 2015, national development and Reform Commission of photovoltaic electricity price adjustments. In December 2015, the State development and Reform Commission issued a circular in 2016, three types of photovoltaic solar energy resources before the benchmark price of 0.90 Yuan/kWh, 0.95 Yuan/kWh, 1.0 down 0.80 Yuan RMB/kWh/kWh, 0.88 and 0.98 Yuan/kWh/kWh. Said in the notification “by 2016 for the record and included in the annual management of the PV power generation projects but is not fully put into operation before June 30, 2016, implementation of the 2016 Internet benchmark price. “That is to say before 2016 filing of projects, just put into operation before June 30, you can perform a cut before the price.

In accordance with the renewable energy pricing and trial measures for the management of cost-sharing (the change price [2006]7) regulations, renewable energy generation project electricity price than local desulfurized coal-fired units part of the benchmark price, through a national renewable electricity prices levied additional address, and that’s a price attached, is charged to the consumers.

National development and Reform Commission, in 2009, 2011, 2013, 2015 renewable energy electricity price levy additional standards to 0.4 cents/kWh, 0.8 cent/kWh, 1.5, 1.9 cents/kWh cents/kWh. Even so, the renewable energy subsidies in China there are still tremendous gaps.

The first Delhi solar thermal Conference, held in September, the National Energy Board new energy Secretary Deputy Director of new energy and renewable Xing Yiteng said the end of the year, renewable energy subsidies gap will reach 60 billion yuan. “Where did this 60 billion gap, and still don’t know. “Xing Yiteng said.

“Countries with between 45 for photovoltaic power generation has a clear vision, which includes two changes: one is merely pursuing changes in scale to the pursuit of quality and efficiency, and the other is subsidised by the high transition to a competitive basis to reduce subsidies. “Meng Xiangan said.

Original title: 0.45 Yuan low PV electricity price: opens the prelude is parity or price war?

Posted in Solar Charger.