In the past, China's photovoltaic industry relied too much on subsidies, and the expansion rate far exceeded expectations, leaving a certain hidden danger to the long-term healthy development of the industry. Promoting unsubsidized photovoltaic projects has become the trend of the times. The development of unsubsidized photovoltaic projects will help the industry to reduce the cost of electricity and achieve a cheaper Internet access. It also encourages enterprises to develop and grow with their own professional capabilities and strengths to form a benign development of the industry.
After the "May 31" policy put the "quick brakes" on the photovoltaic industry, the whole industry is waiting for the signal to be further clear. In July, with the launch of the country's first unsubsidized distributed photovoltaic project, it is expected to explore a new path for the future development of the industry.
Experts said that in the past, the photovoltaic industry relied too much on subsidies, and the expansion rate of the industry far exceeded expectations, leaving a certain hidden danger to the long-term healthy development of the industry. Promoting unsubsidized PV projects is the general trend, which is conducive to accelerate the entry of the photovoltaic industry into “None The era of subsidies."
It is imperative to go to subsidies
In July, the country's first unsubsidized distributed photovoltaic project was launched in Jintan Economic Development Zone, Changzhou City, Jiangsu Province. The reporter learned that the project was jointly invested by Yongsheng Technology and Trina Solar, with an estimated installed capacity of 10 megawatts and a daily generating capacity of 40,000 kWh, which is used for self-supplied power generation in the Yongsheng Technology Factory, without relying on subsidies. Approximately 5 years of recoverable costs.
According to industry insiders, the project belongs to industrial and commercial power stations, and enterprises can fully absorb them, and the two sides have strategic cooperation and have certain specialities. Although it is unrealistic to completely detach from subsidies at the current stage of industrial development, it represents the future development direction and is worth exploring.
In fact, the relevant departments have had a positive attitude towards unsubsidized PV projects, which is imperative. At the end of May, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration jointly issued the "Notice on Matters Related to Photovoltaic Power Generation in 2018", demanding a reasonable grasp of the pace of development, optimizing the scale of new photovoltaic power generation, and temporarily not arranging 2018 ordinary photovoltaic power plants. The scale of construction shall not be arranged in any form to construct ordinary power stations that require state subsidies before the state initiates the construction of ordinary power stations. At the same time, for photovoltaic power generation projects that do not require central financial subsidies, the localities can arrange their own construction according to the conditions for accessing the network and related requirements.
On August 30th, the “Circular on matters related to the construction of photovoltaic power generation projects without state subsidies†issued by the General Department of the National Energy Administration clearly stated that photovoltaic projects that do not require state subsidies should be implemented by themselves.
Market participants said that whether subsidized PV demonstration projects will eventually land, PV subsidies are already imperative. If local governments can effectively reduce related non-technical costs and ensure consumption, unsubsidized PV projects will be promoted for photovoltaics that have been quiet for some time. In terms of the market, it will undoubtedly bring about no small increments, and it is expected to inject new impetus into the photovoltaic industry in the “depressionâ€.
Affordable Internet access is expected to be realized
In combination with the current industry development environment, the subsidy reduction is basically a foregone conclusion, and the unsubsidized project is an inevitable trend of market development. The main purpose of the unsubsidized photovoltaic project is to promote the industry to reduce the cost of electricity and achieve a cheaper Internet access. At the same time, it also encourages enterprises to strengthen their professional capabilities and strength, and actively promote the sound development of the industry.
"If the '5·31' policy is a stepping stone for the PV industry to enter the parity Internet, then the unsubsidized project is an important step for PV to enter the parity online stage." Zhuang Yinghong, Global Market Director of Dongfang Risheng New Energy Co., Ltd. said Dongfang Risheng has piloted unsubsidized projects before the “May 31st†policy was introduced. After the release of the New Deal, the photovoltaic industry has never been able to find a new way out. Therefore, if the unsubsidized project declaration is launched this year, the industry has already had certain conditions to adapt.
In fact, not only the “5·31†New Deal has caused the industry to fluctuate, and the “7·31†overseas market policy changes have also caused a big impact on the photovoltaic industry. The huge changes in the PV industry policy this year, as well as the large changes in the two major domestic and international markets, have indeed made many companies unable to do anything at a time.
"As a company, we will definitely respond positively." Li Qian, president of Zhengxin Optoelectronics Technology Co., Ltd., said that in terms of market development, the company has been adopting a strategy of parallel development at home and abroad, striving to deepen the domestic market and winning with technological innovation. Recognized by overseas customers. Only by using technological innovation as the fundamental driving force and accelerating the mass production and application of emerging technologies can we survive in this competition for survival of the fittest.
It is worth noting that subsidies are not the only stumbling blocks that hinder PV parity. Many PV projects still face high non-technical costs even without subsidies. Wang Bohua, secretary general of the China Photovoltaic Industry Association, once calculated that “the non-technical cost of the photovoltaic industry has accounted for more than 20% of the total investment cost, and the electricity price is at least 1 cent per kWh of electricity, including land cost. , financial costs, grid-connected costs, etc.".
In the "Notice on Matters Related to Photovoltaic Power Generation in 2018", it has long been proposed that while various measures will be taken to promote the decline in the cost of photovoltaic power generation itself, encourage local governments to introduce policies to support the development of photovoltaic industry, reduce non-technical costs, and reduce subsidy intensity. .
Yang Liyou, general manager of Jinneng Clean Energy Technology Co., Ltd. said that at present, there have been some cases in which industrial and commercial electricity prices and large industrial electricity prices in some regions are higher than the photovoltaic benchmark electricity prices, and initially have the basis for realizing parity online. The promotion of unsubsidized projects depends mainly on the profitability of power station developers and investors. With the reduction of manufacturing costs, the continuous promotion of cost-effective products, and the control of non-technical costs, the era of photovoltaic parity online is coming soon.
Enterprises actively reduce costs
The push-off of unsubsidized PV projects is both an opportunity and a challenge for companies. Due to the high electricity prices in China's industrial and commercial sectors, many companies have chosen distributed photovoltaic projects to reduce energy costs in recent years. Some local governments such as Shanghai, Jiangsu, and Zhejiang have also introduced PV support measures. In certain cases, even without subsidies, industrial and commercial distributed projects in these regions can still guarantee higher yields.
In the view of some industry insiders, industrial and industrial distributed photovoltaic projects in these regions are expected to give priority to user-side parity online in the future. With the development of unsubsidized photovoltaic projects, it is bound to drive the development of cost-effective photovoltaic capacity.
Of course, under the current market conditions, it is not difficult to achieve complete unsubsidized development, but some companies have already taken the step of exploration. Zhuang Yinghong said that Dongfang Risheng has been committed to research and development of technologies that increase efficiency while reducing costs, such as double-sided double-glass technology and tile technology. In the field of upstream raw materials and “photovoltaic +â€, we have been investing in research and development to find new growth points.
“The development of non-subsidized projects has made demands on enterprise project design, product manufacturing capability and professionalism.†In the view of Cai Jimi, president of Sumeda Group, in the case of abandoned light and electricity, market disorder, lack of standard standards, subsidy arrears, etc. Under the background of gradual emergence, the industry needs to change from “scale first†to “quality and efficiency firstâ€. In addition to continuous improvement in manufacturing technology, Sumida pays special attention to the comprehensive competitiveness of business capabilities, financial capabilities, EPC engineering capabilities, etc., and provides one-stop products and project service solutions.
Li Qian said that for manufacturing companies, actively accelerating technological innovation, reducing production costs and improving product quality are one of the important ways to promote system cost reduction. In addition, whether the project construction enterprise has rich construction experience, professional and scientific project design capability, and reliable post-operation and maintenance plan will have a direct impact on the project revenue.
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