China's PV policy may be fine-tuned

Abstract The National Energy Administration organized a special meeting on photovoltaics yesterday afternoon to study and support the innovation of photovoltaic development policies and financing models. Discussion topics include strengthening the implementation and management of distributed, ground power plant planning. It is expected that the support policy will be introduced at the end of the month. The major breakthrough in the meeting was to expand the distribution...
The National Energy Administration organized a special meeting on photovoltaics yesterday afternoon to study and support the innovation of photovoltaic development policies and financing models. Discussion topics include strengthening the implementation and management of distributed, ground power plant planning. It is expected that the support policy will be introduced at the end of the month.

The major breakthrough in the conference was to expand the definition of distributed PV, dilute the concept of self-use and surplus power, and establish the basis for the business model of direct users. The study will connect the medium and low voltage within 35 kV to the grid, and use the barren hills and wasteland, agricultural greenhouses and fish pond projects within the 20,000 kilowatts of power generation to be included in the distributed scope, and implement the subsidized electricity price of the local ground power station.

In terms of financing, financial institutions and owners are encouraged to explore financing innovations for various projects. The Energy Bureau will issue support policies with local governments in the pilot areas.

It is widely believed in the industry that it is difficult to complete the annual distributed PV 8GW target under the current policy and requires fine-tuning of policies. Wang Sicheng, a researcher at the Energy Research Institute of the National Development and Reform Commission, has called on many occasions that distributed photovoltaics, especially the mode of self-sufficiency and surplus electricity access, need to coordinate the relationship between the parties. It is difficult to settle the electricity bill, the project income is not clear, the financing is difficult, the transaction risk, etc. obstacle.

Many industry insiders believe that the proposal put forward by the Energy Bureau at yesterday's meeting is very operational. This means that under the premise that the distributed electricity price subsidy is not raised, the distributed quota enjoys the subsidized electricity price of the ground power station, and the return on investment is clear. PV owners can also choose their own business model, and the distributed direct grid-connected profit model is close to the power station.

In terms of financing, Shaanxi, Guangdong and other provinces have introduced policies to encourage social capital to participate in the construction of photovoltaic projects, and pilot photovoltaic innovation financing. Ding Wenlei, executive director of Hangyang Solar, told reporters that some local governments have held meetings with large financial institutions several times before, and it is expected that the support policy for innovation will be introduced at the latest in July. He believes that "the latest program has clear benefits for further improving the construction of distributed power stations, refining subsidy policies, and improving investment returns."

The prospect of distribution is promising, and some listed companies have begun to actively deploy. Wu Hao, deputy general manager of Aerospace Electromechanical, told the media that the company must look for a distributed business model this year. At present, there are 5MW individual villa projects around Shanghai, which will be used to export the monument. Linyang Electronics has an advantage in the settlement of electricity and electricity collection for power grid cooperation, and is determined to be the largest distributed operator in the east. In addition, Yijing Optoelectronics' fish-light complementary project is leading in the industry, and there are rich experience in the distributed project of Dongfang Risheng Agricultural Greenhouse. Qiu Chengfeng, the head of the company's new energy power company, introduced to the reporter that this year's key breakthroughs in Jiangsu, Zhejiang Huadong and Jiangxi Projects in Hubei and other places.

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