State issues 2020 Photovoltaic Power Generation Power Price Policy to optimize Industrial Development

Published: Apr 02, 2020 10:44 (GMT+8)

Source: SMM

Save

SMM4 1: a shares in the morning photovoltaic concept changes, Guangdong Rongtai, Yonggao shares, coal international rose 7%, Zhongtian science and technology, San an photoelectric rose.

Recently, the National Development and Reform Commission issued the Circular on matters related to the 2020 Photovoltaic Power Grid Price Policy (hereinafter referred to as the "Circular"), announcing the 2020 photovoltaic power grid tariff policy.

The circular proposes to continue to set guidance prices for centralized photovoltaic power generation. The guidance price of the new centralized photovoltaic power station in the I~III resource area, which will be included in the scope of state financial subsidy, is 0.35 yuan per kilowatt hour (including tax, the same below), 0.4 yuan and 0.49 yuan per kilowatt hour, respectively. In principle, the feed-in electricity price of the new centralized photovoltaic power station shall be determined by means of market competition and shall not exceed the guidance price in the resource area where it is located.

The Circular makes it clear that the industrial and commercial distributed photovoltaic power generation projects, which are included in the scale of financial subsidies in 2020, adopt the mode of "self-generating and surfing the Internet", and the subsidy standard for full power generation is adjusted to 0.05 yuan per kilowatt-hour; the industrial and commercial distributed photovoltaic power generation projects adopting the "full access to the Internet" model shall be implemented according to the guidance price of the centralized photovoltaic power stations in the resource area. For all industrial and commercial distributed projects uniformly allocated by the competent energy department in the form of market competition, the price formed by market competition shall not exceed the guiding price in the resource area, and the subsidy standard shall not exceed 0.05 yuan per kilowatt hour.

The notice stipulates that the subsidy standard for household distributed photovoltaic power generation, which will be included in the scale of financial subsidies in 2020, will be adjusted to 0.08 yuan per kilowatt hour. The grid electricity price of the village-level photovoltaic poverty alleviation power station (including Liancun power station), which conforms to the relevant management provisions of the national photovoltaic poverty alleviation project, remains unchanged.

China's renewable energy generation capacity will reach 794 million kilowatts by the end of 2019, an increase of 9 percent over the same period last year, according to public data. Renewable energy generation accounted for about 39.5% of all power installations, an increase of 1.1 percentage points over the same period last year. Photovoltaic power generation was installed at 204 million kilowatts, up 17.3 percent from the same period last year.

In 2019, China's renewable energy generation reached 2.04 trillion kilowatt hours, an increase of about 176.1 billion kilowatt hours over the same period last year, and renewable energy generation accounted for 27.9 percent of the total electricity generation, an increase of 1.2 percent over the same period last year. Among them, photovoltaic power generation increased by 26.3% year on year.

A shares photovoltaic power generation NDRC

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

4 hours ago

Kenmare confirms non-binding approach for Mozambique mine owner

[SMM Titanium Flash] Kenmare Resources confirmed on 6 October that International Resources Holdings had submitted a non-binding proposal for a possible cash offer for all Kenmare shares. Discussions are continuing, but no price or firm offer has been announced. Under Irish takeover rules, IRH must state a firm intention to bid or withdraw by 17 November unless the deadline is extended. Kenmare operates Mozambique’s Moma mine, which produces titanium minerals including ilmenite and rutile. A change of ownership could affect future financing and development, but no acquisition has been agreed. Kenmare’s statement reported no change to Moma’s production plans.

4 hours ago

8 hours ago

[SMM Chromium Flash] South Africa's Ferrochrome Revival Depends on More Than Cheaper Power

South Africa’s ferrochrome industry faces a broader competitiveness challenge despite progress on electricity-cost relief, according to discussions at Project Blue’s Critical Materials Conference in Johannesburg on September 8–9, reported by Engineering News on October 9. The negotiated electricity tariff of around 62 cents/kWh for selected ferrochrome smelters, subject to regulatory approval, offers potential relief to producers facing high operating costs. However, industry participants stressed that lower power costs alone will not guarantee a sustained recovery, as logistics efficiency, plant performance, access to capital and policy certainty remain critical to the viability of domestic smelting. The challenge reflects a structural imbalance in the chromium value chain: South Africa remains a major chrome ore supplier, while China has become the leading ferrochrome producer, supported by processing scale and proximity to stainless-steel demand. A durable recovery in South African smelting therefore depends on whether tariff relief can be complemented by reliable transport, efficient operations and investment in existing capacity. For the chrome market, a sustained increase in domestic ferrochrome production could redirect some ore towards local furnaces rather than exports, although the scale and timing of any change will depend on actual smelter utilization and market conditions.

8 hours ago

[SMM Chromium Flash] China’s Chrome Ore Port Inventory Rises to 5.00 Mt as of Oct 9, Tianjin Leads Rebound

As of October 9, 2026, China’s total chrome ore inventory at ports rose to 4.996 million mt, up 113,600 mt (+2.33%) from 4.882 million mt on September 30, the first increase after three straight weekly declines. The comparison spans the National Day holiday, with the prior dataset cut on September 30. Stocks remain 321,800 mt (-6.05%) below the September 11 peak of 5.318 million mt. Tianjin Port accounted for the entire rebound, rising 141,300 mt (+3.30%) to 4.4192 million mt, lifting its share of the national total to 88.5% from 87.6%. Other ports drew a combined 27,700 mt: Qinzhou plus Fangchenggang fell 12,700 mt (-3.22%) to 381,600 mt, Chongqing fell 10,000 mt (-12.50%) to 70,000 mt, and Lianyungang fell 5,000 mt (-7.69%) to 60,000 mt. Shanghai, Caofeidian and other ports, and Zhanjiang were unchanged. The Tianjin build reflects weak offtake during the holiday. Trading stalled, overseas suppliers suspended offers to China, and smelters made only small restocking purchases. Mainstream mills had cut October ferrochrome tender prices by RMB 200 per 50mt unit, and high-carbon ferrochrome output fell 3.17% MoM in September on cost inversion, with southern output down 23.33%, which likely left southern ports with thin arrivals rather than strong consumption. Departures also held at 624,900-660,600 mt for three weeks to October 2, well above the mid-to-late August lull, so stronger arrivals are likely to keep Tianjin stocks elevated into mid-October.

8 hours ago