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

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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.