China's Distributed Photovoltaics Welcomes Sunny Day

- Oct 19, 2018-

China's distributed photovoltaics welcomes "Sunny Day"

The National Development and Reform Commission recently released the first batch of 80 infrastructure and other areas to encourage social investment projects, 36 of which are concentrated in the field of clean energy. There are as many as 30 distributed photovoltaic demonstration zones in the field of solar power generation, accounting for nearly 40% of the total. The biggest highlight in the batch project.

Some projects in Shandong are on the list

It is understood that the first batch of projects cover railways, large-scale clean energy projects and other fields, open to public bidding, encourage and attract social capital to participate in construction operations through joint ventures, sole proprietorships, franchising and other means. Shandong Dongya to Liaocheng Luyijie Highway and Tai'an to Dong'a Highway Project were included. Of the 36 projects in the clean energy sector, 30 are distributed photovoltaic projects.

According to the Shandong Provincial Development and Reform Commission, as a major province of photovoltaic power generation, Shandong has the first installed capacity in parallel with Zhejiang and Guangdong. In 2014, the scale of distributed photovoltaic power generation in Shandong Province, which can enjoy state fund subsidies, was 1,000 megawatts.

Prior to this, the Shandong Provincial Development and Reform Commission has clearly stated that it will develop large-scale applications of distributed photovoltaic power generation in state-level or provincial-level development zones with high industrial concentration and good economic performance, and will be applied in the development of industrial and commercial enterprises and large industrial enterprises. Additional subsidies are provided on the basis of national subsidies for photovoltaic ground power stations and distributed photovoltaics.

However, according to the report issued by China Hydropower Design and Research Institute, Shandong Province's new distributed filing capacity in the first quarter of this year was only 0.415 million kilowatts, accounting for only 0.42% of the annual scale. The scale of the 2014 distributed photovoltaic construction in Zhejiang Province was 1 million kilowatts, but in the first quarter, only 44,800 kilowatts were newly registered.

“Although the scale of the annual construction guidance issued by the state to many provinces, autonomous regions and municipalities at the beginning of this year was generally large, as of the end of the first quarter, there were no new record-distributed projects in most areas.” Ren Haoning, a senior researcher at China Investment Consulting At present, the domestic distributed PV installed capacity is small, and the development owners are mostly private enterprises. Limited by factors such as difficulty in financing, low yield, difficult to find roof, and filing on the grid, the scale of distributed installed capacity is limited.

Improve the regulatory mechanism

Wang Jin, director of the International Energy Research Institute of the International Cooperation Center of the National Development and Reform Commission, said that although the scale of new energy investment represented by distributed photovoltaics is relatively small, the market is active and private enterprises are highly involved. Therefore, after the state encourages investment projects to be released, the first benefit is distributed photovoltaic power generation. According to the cost of photovoltaic system in the photovoltaic demonstration zone of 7 yuan to 8 yuan / watt, the installed capacity of 30 demonstration zones is 3 million kilowatts, and the investment in this distributed photovoltaic system alone can reach 24 billion yuan.

Wang Jin believes that major infrastructure projects are actively open to private capital, demonstrating the determination to deepen reform at the national level. The dependence of investment links on private capital will gradually increase, and the promotion of mixed ownership will achieve significant results. Previously, the national and local governments have repeatedly promoted photovoltaic demonstration projects, and the final result was a loss of losses. Enterprises could not obtain good economic benefits from demonstration projects. The root cause is that there is no perfect implementation mechanism and regulatory mechanism.

With the liberalization of policies, some problems that are currently plaguing the development of distributed PV are expected to make breakthroughs in May and June, and the installed capacity of distributed PV is expected to increase rapidly from the third quarter.

Ren Haoning reminded that in the future, it is necessary to truly reflect the opening up to private capital. The most important thing is to establish a “negative list”, list those that restrict investment, prohibit investment, and prevent investment. The rest are for private investment, and let private capital Come, stay, earn money.

At the same time, private capital should be cautious when it enters the first batch of incentive projects. At present, it is only encouraging private capital to enter energy projects. Perfect entry mechanisms, exit methods, regulatory measures, and industrial policies have not yet been promulgated. In terms of policies, it is necessary to make huge adjustments in advance, and ensuring the legal status and legitimate rights and interests of private capital is the prerequisite for promoting other work.

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