10 key points to understand the Photovoltaic subsidy Policy in 2019-Shanghai Metals Market

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10 key points to understand the Photovoltaic subsidy Policy in 2019

Translation 08:04:57AM May 07, 2019 Source:Yuan Yi energy
The content below was translated by Tencent automatically for reference.

SMM News: on April 28, the National Development and Reform Commission issued the Circular on improving the Grid electricity Price Mechanism for Photovoltaic Power Generation (Development and Reform Price (2019) No. 761), which was publicly released on the official website of the National Development and Reform Commission on April 30. The document made it clear that the grid price of photovoltaic projects in 2019, and the policy of photovoltaic electricity price in 2019 was finally settled.

The core of the policy is bidding: with the exception of poverty alleviation and household distributed power stations, all distributed photovoltaic power stations and centralized bidding are involved. The China Photovoltaic Industry Association believes that after repeatedly convening representatives of photovoltaic enterprises to solicit opinions, the introduction of this policy has fully taken into account the current situation of industry development and the demands of enterprises, and has made a more reasonable adjustment to the photovoltaic feed-in electricity price policy in 2019. Within the scope of objective boundaries, we will promote China's photovoltaic industry to continue to grow and move towards a comprehensive and unsubsidized era.

In 2019, there will no longer be benchmarking electricity prices, instead of guiding electricity prices. The open bidding was carried out for the new ground power station projects in 2019. The upper limits of class I, II and III resource areas were 0.40 yuan, 0.45 yuan and 0.55 yuan per kilowatt hour, respectively. The bidding rules shall be reordered after the revised electricity price is calculated according to the latest version of the draft for soliciting opinions.

2. Since the Ministry of Finance has specified a total subsidy plate of 3 billion yuan in 2019, there will be no more serious impact caused by the sharp braking of the industry after the issuance of the 531 policy last year, and there will be 630 more this year. It is mainly aimed at centralized photovoltaic power stations that have been included in the scale of financial subsidies but have not yet determined the feed-in price.

3. The household photovoltaic index is listed separately for the first time, and the total index scale is 3.5GW + the amount of installation in the buffer period of one month. Whether the household power station is "self-generating and self-use, surplus electricity" or "full power" mode, the same electricity price model is adopted, that is, 0.18 (kilowatt-hour electricity subsidy) + local coal benchmark electricity price.

4. The ground power station and the industrial and commercial power station participate in the national bidding, and the guiding price is the highest value to participate in the bidding price, and the bidding price = subsidy price + local coal benchmark price.

5. Because of its particularity, the subsidy price has not been adjusted and will be issued as soon as possible. However, the latest policy is that companies can not invest in photovoltaic poverty alleviation power stations.

6. The upper limit of competitive subsidy for industrial and commercial electricity prices is set at 0.1 yuan / kWh. Full online industrial and commercial projects will compete with ground power stations, with a subsidy ceiling of 0.1 yuan per kilowatt-hour. Spontaneous self-use, the remaining electricity online industrial and commercial projects will participate in the bidding, but also need to be confirmed in the final document of the National Energy Administration.

7. 2019 electricity prices will remain unchanged throughout the year, not according to the previously discussed quarterly decline.

8. Considering the livelihood issues, household photovoltaic projects that do not receive subsidies in 2018 are expected to receive 0.18 yuan / kWh subsidy, but need to be finally clear by the National Energy Administration.

9. Since the electricity price policy is implemented on July 1, 2019, this year's subsidies will also be issued from July 1. According to the 20-year subsidy cycle used in the past, photovoltaic power stations connected to the grid before 630 are only equivalent to state subsidies for some time. It doesn't affect much of the overall earnings.

10. This year, the amount of household photovoltaic subsidies and electricity price policy have been clear, enterprises can begin to deploy the project.

QQ截图20190506084849.jpg

Compared with the hasty announcement of the 531 policy last year, although the introduction of the 2019 photovoltaic electricity price policy has also attracted the attention of the industry, but the impact of the policy is relatively moderate, many people in the industry have said they are already prepared. Before the introduction of this year's policy, the relevant departments have repeatedly gathered representatives of relevant enterprises, industry experts, industry leaders to solicit opinions, and strive to balance the needs of all parties.

According to the China Photovoltaic Industry Association, before the photovoltaic industry can get online at a comprehensive parity, it still needs a part of the subsidy scale. With the support of limited subsidy funds, how to give a supporting electricity price? At the same time, the scale of installation which can ensure the healthy development of the maintenance industry has always been a difficult problem.

After repeatedly convening representatives of photovoltaic enterprises to solicit opinions, the introduction of this policy has fully taken into account the current situation of industry development and the demands of enterprises, and has made a more reasonable adjustment to the photovoltaic feed-in electricity price policy in 2019, within the scope of the objective boundary. It will promote China's photovoltaic industry to continue to grow and move towards a comprehensive and unsubsidized era.

However, while the new deal has contested the views of all parties, the decline in subsidies still poses many challenges for the industry as a whole. From the current situation, the rate of decline in subsidies is faster than the rate of decline in prices and costs, therefore, the industrial chain needs to work together to reduce the impact of excessive decline in subsidies.

Key Words:  Photovoltaic  policy  power grid  capacity 

10 key points to understand the Photovoltaic subsidy Policy in 2019

Translation 08:04:57AM May 07, 2019 Source:Yuan Yi energy
The content below was translated by Tencent automatically for reference.

SMM News: on April 28, the National Development and Reform Commission issued the Circular on improving the Grid electricity Price Mechanism for Photovoltaic Power Generation (Development and Reform Price (2019) No. 761), which was publicly released on the official website of the National Development and Reform Commission on April 30. The document made it clear that the grid price of photovoltaic projects in 2019, and the policy of photovoltaic electricity price in 2019 was finally settled.

The core of the policy is bidding: with the exception of poverty alleviation and household distributed power stations, all distributed photovoltaic power stations and centralized bidding are involved. The China Photovoltaic Industry Association believes that after repeatedly convening representatives of photovoltaic enterprises to solicit opinions, the introduction of this policy has fully taken into account the current situation of industry development and the demands of enterprises, and has made a more reasonable adjustment to the photovoltaic feed-in electricity price policy in 2019. Within the scope of objective boundaries, we will promote China's photovoltaic industry to continue to grow and move towards a comprehensive and unsubsidized era.

In 2019, there will no longer be benchmarking electricity prices, instead of guiding electricity prices. The open bidding was carried out for the new ground power station projects in 2019. The upper limits of class I, II and III resource areas were 0.40 yuan, 0.45 yuan and 0.55 yuan per kilowatt hour, respectively. The bidding rules shall be reordered after the revised electricity price is calculated according to the latest version of the draft for soliciting opinions.

2. Since the Ministry of Finance has specified a total subsidy plate of 3 billion yuan in 2019, there will be no more serious impact caused by the sharp braking of the industry after the issuance of the 531 policy last year, and there will be 630 more this year. It is mainly aimed at centralized photovoltaic power stations that have been included in the scale of financial subsidies but have not yet determined the feed-in price.

3. The household photovoltaic index is listed separately for the first time, and the total index scale is 3.5GW + the amount of installation in the buffer period of one month. Whether the household power station is "self-generating and self-use, surplus electricity" or "full power" mode, the same electricity price model is adopted, that is, 0.18 (kilowatt-hour electricity subsidy) + local coal benchmark electricity price.

4. The ground power station and the industrial and commercial power station participate in the national bidding, and the guiding price is the highest value to participate in the bidding price, and the bidding price = subsidy price + local coal benchmark price.

5. Because of its particularity, the subsidy price has not been adjusted and will be issued as soon as possible. However, the latest policy is that companies can not invest in photovoltaic poverty alleviation power stations.

6. The upper limit of competitive subsidy for industrial and commercial electricity prices is set at 0.1 yuan / kWh. Full online industrial and commercial projects will compete with ground power stations, with a subsidy ceiling of 0.1 yuan per kilowatt-hour. Spontaneous self-use, the remaining electricity online industrial and commercial projects will participate in the bidding, but also need to be confirmed in the final document of the National Energy Administration.

7. 2019 electricity prices will remain unchanged throughout the year, not according to the previously discussed quarterly decline.

8. Considering the livelihood issues, household photovoltaic projects that do not receive subsidies in 2018 are expected to receive 0.18 yuan / kWh subsidy, but need to be finally clear by the National Energy Administration.

9. Since the electricity price policy is implemented on July 1, 2019, this year's subsidies will also be issued from July 1. According to the 20-year subsidy cycle used in the past, photovoltaic power stations connected to the grid before 630 are only equivalent to state subsidies for some time. It doesn't affect much of the overall earnings.

10. This year, the amount of household photovoltaic subsidies and electricity price policy have been clear, enterprises can begin to deploy the project.

QQ截图20190506084849.jpg

Compared with the hasty announcement of the 531 policy last year, although the introduction of the 2019 photovoltaic electricity price policy has also attracted the attention of the industry, but the impact of the policy is relatively moderate, many people in the industry have said they are already prepared. Before the introduction of this year's policy, the relevant departments have repeatedly gathered representatives of relevant enterprises, industry experts, industry leaders to solicit opinions, and strive to balance the needs of all parties.

According to the China Photovoltaic Industry Association, before the photovoltaic industry can get online at a comprehensive parity, it still needs a part of the subsidy scale. With the support of limited subsidy funds, how to give a supporting electricity price? At the same time, the scale of installation which can ensure the healthy development of the maintenance industry has always been a difficult problem.

After repeatedly convening representatives of photovoltaic enterprises to solicit opinions, the introduction of this policy has fully taken into account the current situation of industry development and the demands of enterprises, and has made a more reasonable adjustment to the photovoltaic feed-in electricity price policy in 2019, within the scope of the objective boundary. It will promote China's photovoltaic industry to continue to grow and move towards a comprehensive and unsubsidized era.

However, while the new deal has contested the views of all parties, the decline in subsidies still poses many challenges for the industry as a whole. From the current situation, the rate of decline in subsidies is faster than the rate of decline in prices and costs, therefore, the industrial chain needs to work together to reduce the impact of excessive decline in subsidies.

Key Words:  Photovoltaic  policy  power grid  capacity