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Photovoltaic New Deal: not sudden brake

    The national development and reform commission, the ministry of finance and the national energy administration recently issued a notice on matters related to photovoltaic power generation in 2018. The announcement is an inevitable requirement for the photovoltaic industry to enter a new stage of high-quality development and is of great significance to the sustainable and healthy development of the industry, an official with the national energy administration told reporters Tuesday.
    It is conducive to easing the subsidy gap of the photovoltaic industry, light abandoning and power limiting
    "The cost of fixing the current difficulties facing the pv industry is much smaller and more meaningful than the cost of adjusting after a bubble." The national energy administration said.
   'the announcement is not only an important measure to implement supply-side structural reform and promote high-quality economic development, but also an important measure to alleviate the prominent contradiction faced by the photovoltaic industry, such as the subsidy gap and light abandoning and power limiting, which is conducive to promoting the transformation of the photovoltaic industry from scale growth to high-quality development,' he said. It has four main meanings.
    First, it is conducive to easing financial subsidy pressure. The continuous expansion of financial subsidy gap is a prominent problem restricting the development of photovoltaic industry. Up to now, the cumulative subsidy gap for renewable energy power generation has exceeded 120 billion yuan, directly affecting the healthy and orderly development of the industry.
     "If this extraordinary growth continues and the fiscal subsidy gap continues to grow, it will have a more adverse impact on the development of the industry." 'appropriately reducing the amount of new construction that needs subsidies will avoid systemic risks and be conducive to industrial development in the long run,' he said.
     Second, it is conducive to solving the problem of consumption. Last year, through various efforts, the abandoned light rate  dropped to 6%, but some places are still very serious. In the first quarter of this year, the rate of light abandoning reached 4%. And with the rapid increase of distributed photovoltaic installation, it brings new problems to the safe operation of distribution network in some eastern regions. By adjusting the development pace, it can help solve the problem of photovoltaic absorption and reduce light abandoning.
    Third, it is conducive to stimulate enterprise endogenous power. As photovoltaic subsidies strength degradation, is reversed transmission enterprise transition from relying on the national policy to rely more on market, through the authors improve the quality of development, increase the photovoltaic industry evolution, curb irrational expansion, to further consolidate the photovoltaic industry leading position in the whole world, foster a batch of world-class pv manufacturing leader.
    Fourth, we will encourage local governments to reduce non-technology costs and improve the business environment. After the subsidy reduction, in order to ensure the economy of photovoltaic power generation projects, on the one hand, enterprises can reduce costs through technological progress; on the other hand, it can also promote local governments to implement various policies supporting the development of photovoltaic industry and reduce non-technical costs.
Adjustment is not "one size fits all"
    "The adjustment is not 'one-size-fits-all', but to optimize the scale of new construction of photovoltaic power generation, the adoption of classified regulation." The person in charge stressed that the construction scale of ordinary power stations and distributed power stations that need state subsidies should be reasonably controlled and increased. Arrange the leading base project according to the control situation; We will vigorously support poverty alleviation projects in solar panels and projects that do not require state subsidies and develop them in an orderly manner.
     He said that this year the first batch of 4.18 million kilowatt photovoltaic poverty alleviation has been issued, the second batch of 4 million kilowatt is preparing. The third batch of leading base projects has been selected 6.5 gw, and the fourth batch will be launched in the second half of the year.
   The head of the price department of the national development and reform commission said that the benchmark price of ordinary photovoltaic power stations and the subsidy standard of distributed photovoltaic power generation should be lowered mainly due to the following considerations: first, the price of photovoltaic modules has dropped rapidly, and the average price of photovoltaic modules has dropped by about 17% compared with the end of last year. Second, with the photovoltaic leader base bidding ceiling price convergence; Third, the subsidy gap has grown too fast.
    "Since last year, distributed photovoltaic power generation has been developing at a high speed with many risks. It needs to play a regulatory role through price leverage." According to a person in charge of the pricing department of the national development and reform commission, projects that have been included in the scope of subsidies for construction scale in 2017 and before will be put into operation before June 30 this year, and the benchmark electricity price in 2017 will continue to be implemented. In addition, the state energy administration organized tenders for technology-leading base construction projects, and the feed-in tariff policy remains unchanged.
     We will promptly study the timetable and roadmap for commercializing photovoltaic power generation
    "Supporting the development of clean energy such as photovoltaic power generation is an important part of the revolution in energy production and consumption, and the country will continue to support the healthy and sustainable development of the photovoltaic industry," he said. National energy administration officials stressed.
     He said the next step is to strengthen the relevant departments to study relevant policy measures. First, we will promptly study the timetable and roadmap for commercialization of photovoltaic power generation and keep a reasonable pace of development.
     Second, vigorously promote distributed market transactions. Pilot schemes are being put forward at various localities, and relevant state departments will speed up consultation and reply.
    "After the notice was issued, some local power grid companies simply understood that the state wanted to control the development of photovoltaic power, and the projects connected to the grid were not given. According to the policy requirements, the subsidies for distributed photovoltaic power generation paid in advance were also stopped, which should be corrected immediately." He stressed.
     Third, we will reduce the burden on enterprises and create a favorable business environment for them. He pointed out that, compared with foreign countries, the cost difference of photovoltaic power generation in China mainly lies in the non-technical cost. In the next step, relevant measures will be implemented to make photovoltaic enterprises move forward with light load.
Fourth, we will promptly implement the renewable energy power quota system. At present, the relevant policies have been completed to solicit opinions, will be further revised and improved, for the year.
     Fifth, adopt multiple measures to expand consumption and further reduce light abandoning and power limiting. Power grid enterprises should implement priority dispatching requirements for new energy.

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