PV financing bumpy road

Polaris solar PV net news: on November 7, the national development and Reform Commission, the National Energy Board held a news conference outside released the power development “Thirteen-Five” programme (hereinafter the plan), in which the clear goal of distributed PV. The planning requirements by 2020, solar power installed capacity reached 110GW (GW-1 billion Watt power capacity), which distributed PV 60GW above. At this point, the main distributed photovoltaic solar power generation will come to the fore.

This is the first time in 15 years after the Power Authority announce 5-year power development plan again. Last published dating back to January 1, 2001, the electricity authority (the former State economic and Trade Commission) released the power industry “XV” plan.

In January 2016, the SASAC from Shenzhen as the actual controller of local State-owned enterprises of Shenzhen energy first to achieve PV right ABS, with its most outstanding project in the eastern region in the main qualification plus temporary advantage of unlimited risk, asset securitization in the PV industry’s first step on the road.

On April 3, China PV power investment and financing Alliance was formally established, photovoltaic power generation combined with financing a new PV industry growth. At the inaugural meeting, the National Center for strategic studies and international cooperation to address climate change, China renewable energy industries Association says Li junfeng, Director of circular economy: “China’s photovoltaic industry is the most competitive industry in the world, financing Alliance was formed, in addition to the financing of innovation in power station, will also promote the reform of the institutional mechanisms of the photovoltaic industry innovation and technological progress and innovation. ”

At present, the development of the photovoltaic industry matures, PV financing needs are also showing a growing trend, further financing of PV industry and strive for better development, needs to be further investigated.

A bright future

By the end of 2015, China PV cumulative installed capacity 43.18 million-kilowatt, become the largest country in the global PV installed capacity. Among them, the PV power station 37.12 million-kilowatt, distributed PV 6.06 million-kilowatt, when annual output of 39.2 billion-kilowatt.

“The national annual utilization hours at 1133 hours on average, is more serious in some areas in the Northwest of abandoned light phenomena, Gansu province, the annual average utilization hours of 1061 hours, abandon rates 31%; Xinjiang Autonomous Region average annual utilization hours of 1042 hours, abandon rates up to 26%. “The Institute Zhou Binhong Price Waterhouse researcher in an interview with reporters, China’s current status of photovoltaic devices and electricity generation, and trends.

He further explained to the reporter, on June 3, 2016, the National Energy Board issued the notice about ordered 2016 PV implementation programmes, which called in 2016, new construction scale for PV power station 18.1 million-kilowatt, which common PV 12.6 million-kilowatt, PV leads the technology base scale 5.5 million-kilowatt, in addition to additional 8 PV leads the technology base.

Zhou Binhong said: “in the ‘ Thirteen-Five ‘ in the main objectives of development of the power industry, 2020 PV power installed capacity reaching more than 110 million kilowatts, which distributed more than 60 million-kilowatt PV and solar thermal power 5 million-kilowatt. In accordance with the principle of priority of the stock, relying on power delivery channel, in an orderly fashion ‘ North ‘ renewable energy across the province to dissolve 40 million-kilowatt. ”

June-in-law firm partner Li Deting lawyer, in an interview with reporters, said: “the short construction period of PV projects and would need about six months to complete. Now the photovoltaic industry is developing rapidly, but photovoltaic industry relies on subsidies subsidies, subsidies account for the entire price of one-third. ”

Financing difficulty

“As the money demand, demand long cycle, so the PV industry is facing a problem of difficulties in financing, in particular distributed PV power generation projects. “Now financing status of PV industry, Zhou Binhong said in an interview. Although PV companies have many kinds of financing methods, but, by policy banks and commercial banks in loans and other financing continues to be difficult, is also a factor, contributed to the combination of PV industry and finance leases.

From the perspective of finance leasing companies, in the current financial industry faces “asset shortage” background, the PV power plant because of its long-term and stable cash flow and become a good assets and large photovoltaic power plant investment, long capital recovery period also corresponds to financing and leasing the equipment.

“PV industry financing difficulty problems do exist. On China’s banking system, still more attention to security, for specific projects earnings measure is secondary. PV Returns, there is a certain degree of uncertainty. Although PV subsidies accounted for one-third, but there are still lags a subsidy issue. Perhaps in the operations of a project after a year or two, will get State subsidies. This may have a large impact on the company’s operations. “Li Deting lawyers also told reporters.

Li Deting further explained: “on security issues, from the photovoltaic plant itself, Bank compliance, and commercial mortgages to consider, couldn’t guarantee the program’s operation. ”

Li Deting said the photovoltaic industry is not like any other industry has fixed assets, banks will be more valued physical assets, like housing, mortgage, which is the traditional banking business model. PV power station in addition to the partial pressure and pressure regulating stations, and no large pieces of real estate as collateral.

“In addition, the PV industry a relatively short construction period, the construction schedule of the project is actually ahead of project approvals, photovoltaic power plant is completed, land clearance of the project has not been completed. “Li Deting said.

Policies to promote

Zhou Binhong believes that to solve the problem of financing of PV industry, on the one hand to consolidate domestic and foreign financial institutions, set up investment and financing and information exchange platform, on the need to promote PV industry business models and financing mode’s innovation and upgrading docking service level and efficiency of investment and financing to promote suitable investment and financing products for photovoltaic applications. In addition, should regulate investment and financing recommendations and simplify the docking procedure, Member of the Union for the coordination and projects seeking investment and financing opportunities.

Li Deting counsel were of the view that in terms of traditional bank financing, the Bank’s loans are changing, but there will not be big changes in a short time. If the bank credits from the project, the company’s circumstances, changes to project revenues, the financing of PV industry will probably change.

“Solar products can also carry out other forms of financing, such as asset securitization. May now trust in the PV field, relatively little, but financing costs will be relatively high. If universal asset securitisation will lower the cost of financing requirements. “Li Deting recommendations.

At present, two different subsidies for PV power plant in China. For centralized solar power, policy requiring grid companies can be higher than the benchmark price of photovoltaic power station coal benchmark price in the local part of the application for renewable energy subsidies; for distributed PV power station, the whole power subsidy policy in China, power companies can apply for the renewable energy development fund, paid by utilities turn power enterprise.

Zhou Binhong further stated that in August 2015, Chinese Photovoltaic Industry Association, the China renewable energy industries Association of circular economy Committee, the China renewable energy society jointly submitted three policy documents relating to promoting the development of the photovoltaic industry. Which, on improve “Thirteen-Five” PV power target of recommends in the mentioned will “Thirteen-Five” planning PV installed target by zhiqian 100 million-kilowatt adjustment for 200 million-kilowatt; on “Thirteen-Five” during support PV industry health development of recommends stressed strengthening can renewable energy additional levy efforts, simplified subsidies issued program, maintained stable electric price level, and manpower PV base and grid channel construction planning, packaging PV grid and full acquisition, for PV power station with to take land tax offers policy; PV electricity shortage and recommendations referred to incorporate renewable energy fund “in order to” with the words “to” yield, improve renewable additional, Special Fund for the implementation of the renewable energy development.

“Now does not have detailed provisions on financing of photovoltaic, especially in Bank lending does not have special provisions for PV projects. As for the PV industry itself, is a capital-intensive industry, if countries are able to introduce more systematic and comprehensive provisions to advance and improve the PV field, financing, policies to encourage and guide the financing, should promote the development of the industry. “Li Deting lawyers finally suggested.

Original title: PV financing bumpy road

Posted in Solar Charger.