Photovoltaic industry calls for benchmarking price

Abstract For the Chinese PV industry with promising prospects, the current project bidding system has caused shortcomings such as low-priced vicious competition. From the international experience, according to the conditions of different sub-districts to set the benchmark price of electricity, the implementation of a fixed on-grid tariff policy, is to promote the "Twelfth Five-rd...

For the Chinese PV industry with promising prospects, the current project bidding system has caused shortcomings such as low-priced vicious competition. From the international experience, it is the key measure to promote the growth of the domestic 12th five-year PV industry by delineating the benchmark electricity price according to different conditions and implementing the fixed on-grid tariff policy.

China's PV industry has always presented a situation of “two heads out”. Although China's PV companies account for more than 50% of the global supply, the demand is only less than 5% of the world's total. In 2010, China's total installed PV capacity is only about 500MW.

The relevant authorities have introduced subsidy policies, but the actual results are not satisfactory. Beginning in March 2009, the central government decided to invest about 10 billion yuan each year to provide subsidies for China's solar roof and photovoltaic building construction to promote the development of the domestic photovoltaic market. However, the implementation of the “Golden Sun” project was not satisfactory. In 2010, the first phase of the project started construction project was less than half of the total planned scale, which led to a significant reduction in the size of the second phase project determined by the state.

At present, the on-grid price of domestic PV projects generally adopts the bidding pricing method. Many Chinese-language background operators pay more attention to increasing project experience or implementing model projects. They are not particularly valued for profit, resulting in low-price vicious competition in the bidding process. Due to insufficient investment income, the investment entity is not motivated. For component manufacturers, the actual profit obtained cannot be compared with the export component products, which also causes the domestic photovoltaic market to “small and thunder”.

For example, in the bidding for the Dunhuang 10MW project in 2009, the market reported an ultra-low price of 0.69 yuan/kWh. Although the dispute was too controversial, the effective adjustment price was 1.09 yuan/kWh. The investment income of this price was tied to the interest. For PV manufacturers and power station operators, there is still not much attraction.

Under the current bidding system, for the PV manufacturers and power station operators of the investment entities, while the installed capacity increases, it does not mean that the profits will increase accordingly. Many enterprises take the project to increase the installed capacity only for the advance layout. , staking the ground. Recently, it has been reported that the second round of the 280MW photovoltaic concession bidding project launched in October last year, as of now, still 70% has not yet started.

It is understood that the current 12th Five-Year Development Plan for New Energy, which is being formulated by the National Energy Administration, may raise the “12th Five-Year” PV installation target to 10GW, and increase it to 50GW by 2020, with an average annual installed capacity of 2GW. However, according to the expected bidding situation this year, 600MW-1000MW may already be the upper limit.

The ambitious goal calls for a large-scale start-up of the domestic PV market. The insiders pointed out that the domestic market should be fully launched, and the current on-grid price must be changed from the bidding pricing system to the fixed on-grid tariff. That is, according to the wind power, several major resource areas are divided according to the lighting conditions, and the grid-based electricity price is delineated according to different conditions.

Countries such as Germany and Italy in Europe have been implementing a fixed on-grid tariff policy, and on this basis, government subsidies for photovoltaic power generation projects have effectively promoted the growth of their photovoltaic market. According to authoritative statistics, the German and Italian PV industries are developing rapidly due to the incentives of the two governments to subsidize the on-grid tariff. Of the world's 17 GW installed capacity in 2010, Germany and Italy accounted for 70% of the global market.

In addition, since the implementation of the fixed on-grid tariff policy in the four major resource zones in 2009, the domestic wind power market has enthusiasm for investment, supporting the continuous doubling of wind power installed capacity in the past two years.

For the photovoltaic industry itself, by determining a reasonable fixed on-grid tariff level, it can boost the investment income expectation of the market as the main business, and avoid the engineering quality problems caused by the enterprise's desperately compressing the cost under the principle of “low price”. It can ensure the healthy and orderly development of the industry.

One of the reasons for the delay in the introduction of on-grid tariffs in the domestic PV industry is that the government believes that the cost of photovoltaic electricity prices has not fallen to a reasonable level, and it is necessary to continue to push down the cost reduction by bidding pricing. However, at present, some leading domestic PV companies are actively promoting through technology research and development, and it is expected to achieve the arrival of the photovoltaic 1 yuan era by 2012.

Therefore, the current conditions for the implementation of the fixed electricity price policy for photovoltaic Internet access have gradually matured. In order to break through the constraints imposed by the on-grid tariff policy on industrial development, the policy needs to comply with the current situation in a timely manner and introduce a fixed on-grid tariff policy as soon as possible.
 

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