Distributed photovoltaic temporarily "self-use"

First set of "0.45 yuan electricity subsidies" ceiling

People in the photovoltaic industry believe that the 0.45 yuan/kWh subsidy standard can increase the IRR (internal rate of return) of photovoltaic power plants to about 14%. This indicator is enough to attract a considerable amount of industry investment for the "tight" PV industry.

After the EU’s preliminary sanctions were settled, the good news of the photovoltaic industry continued one after another.

Following the important meeting of the State Council Executive Meeting on June 14th, a few days ago, in order to implement the requirements of the State Council on promoting the healthy development of the photovoltaic industry, the National Energy Administration held a working conference on distributed photovoltaic power generation to study and layout a distributed photovoltaic power generation demonstration area. Project work plan and specific measures, and put forward the “Distributed Photovoltaic Power Demonstration Area Work Plan”.

It is reported that the plan requires that the distributed demonstration of photovoltaic power generation in large-scale demonstration areas should be implemented by 1-2 well-qualified national-level economic development zones or industrial parks, mainly using the "self-use" model. What is even more crucial is that this program indirectly defines the upper limit standard for the “degree of electricity subsidies” that has attracted the attention of the industry, that is, “the demand for subsidy funds is lower than 0.45 yuan/kWh”.

According to a number of photovoltaic industry insiders interviewed by the "Securities Daily" reporter, the subsidy standard of 0.45 yuan/kWh can increase the IRR (internal rate of return) of photovoltaic power plants to about 14%. Although this IRR indicator is not as attractive as many profit-generating industries, it is enough to attract a considerable amount of industrial investment for the “tight” PV industry.

"0.45 yuan electricity subsidies" come in hard

In March this year, the National Development and Reform Commission issued a "Concerning Notice on Perfecting the Price of Photovoltaic Power Generation", which was exposed by the media. At that time, this “distribution-generated self-use electricity price subsidy of 0.35 yuan/kWh” had been criticized by the industry.

Nowadays, the proposal of the "Distributed Photovoltaic Power Demonstration Area Work Program" means that the management has adopted the opinions of the industry and raised the power subsidy standard from 0.35 yuan/kWh to 0.45 yuan/kWh.

In fact, for a long time, management has been preparing for the development of distributed photovoltaics.

In September last year, the National Energy Administration issued the Notice on Application of Distributed Photovoltaic Generation Scale Application Demonstration Area. For this notice, a photovoltaic company person, who did not wish to be named, told the "Securities Daily" reporter. "At that time, local governments were very enthusiastic about the application of distributed photovoltaic power generation scale demonstration zones. But at the same time, because everyone had no experience. , more project declarations, more chaotic"

Immediately afterwards (October), the “Opinions on Doing a Good Job in Distributed Photovoltaic Power Grid Connection Services”, which has made applause in the photovoltaic industry, officially issued by the State Grid.

“Afterwards (approx. in around November), the management once conducted a “Supplementary Application for the Demonstration Zone of Distributed Photovoltaic Power Generation Scale Application.” On the one hand, that declaration allowed the local authorities to submit supplementary declarations; on the other hand, the management also hoped that Local governments took the opportunity to sort out and screen previously filed projects. What's even more interesting is that, in the declaration form, relevant departments not only require companies to fill out basic project information, but also require companies to submit proposals for 'subsidy for electricity subsidies'. The reporter said, "I suspect that this proposal collection process may also have made a definite contribution to the clear standard of electricity subsidy of 0.45 yuan/kWh today."

On June 14 this year, the photovoltaic industry again became an important topic of the State Council's executive meeting after December 19 last year. The State Council also issued six measures to promote the healthy development of the photovoltaic industry.

Distributed photovoltaic temporarily based on spontaneous use

It is reported that on June 16th, the National Photovoltaic Bureau held a working conference on distributed photovoltaic power generation, convening Beijing, Shanghai, Tianjin, Hebei, Guangdong, Jiangsu, Zhejiang, Shandong, Liaoning, and Jiangxi provinces as well as Shenzhen, Ningbo, Qingdao and Dalian. Other officials from the Municipal Development and Reform Commission or the Energy Bureau attended the meeting.

The meeting clearly required all provincial and municipal energy bureaus (7 provinces and 7 cities) to complete the implementation plan and report it before July 10. The approved demonstration area needs to start project construction by the end of July.

At present, in the view of the industry, in addition to the "subsidy for electricity", there is a shortage of "on-grid tariff" for the practical supporting policies for distributed photovoltaics.

According to the disclosure made by Wang Zhongying, deputy director of the National Energy Development Research Institute of the National Development and Reform Commission, at the SNEC (2013) Shanghai Photovoltaic Expo, the distributed photovoltaic power generation project will be subdivided into three categories: subsidies for industrial and commercial users 0.2 yuan/degree The subsidies for large industrial users were 0.4 yuan/kWh, and those for residents, hospitals, schools, and rural areas enjoying preferential tariffs were 0.6 yuan/kWh. As for the self-use margin of the three types of projects, the grid company purchased the local thermal power benchmark price (desulfurization price), and the government unified the subsidy of 0.45 yuan/degree.

The above-mentioned photovoltaic company figures calculated an account for this reporter: given that the commercial electricity price in most parts of the country is about RMB 0.9/kW - RMB 1.1/kWh, the distributed solar PV users can enjoy the actual benefits of “spontaneous use”. This is equal to the commercial electricity price plus "subsidy", which is about 1.3 yuan / degree.

“This figure is higher than the price of commercial electricity, and naturally it can stimulate the enthusiasm of the user, but in contrast, self-use spare part of the Internet, but can only get desulfurization price (about 0.4 yuan / degree) procurement of the Internet, even if On the subsidy of 0.45 yuan / degree, its price is only 0.85 yuan / degree, still lower than the commercial power price of 0.9 yuan / degree lower limit. "The person told reporters Road.

In fact, this is in line with the requirement of the “mainly self-operated 'mode operation” proposed by the National Energy Administration’s “Distributed Photovoltaic Power Generation Demonstration Area Work Program” for large-scale distributed photovoltaic power generation demonstration areas.

In the view of the industry, the long-term direction of development of distributed photovoltaics is still “on the Internet”, but given that electricity price reform cannot be achieved overnight, it is still a matter of choice.