PV benchmark price cuts down and cost reduction

The downturn of onshore wind power and photovoltaic power prices has finally settled. The National Development and Reform Commission (NDRC) announced on the 24th that the "Notice on Improving the Electricity Price Policy for Onshore Wind Power Photovoltaic Power Generation" has been issued to appropriately reduce the price of new onshore wind power and photovoltaic power generation. The insiders analyzed that by reducing the electricity price and increasing the renewable energy to solve the problem of subsidy arrears, the long-term competitiveness of the new energy industry will be upgraded, and the cost will be reduced, and the parity will be promoted. At the same time, policy guidance to support the power plants in the central and eastern regions can reduce the pressure on development in the west and ease the wind curtailment.

According to the reduction of project cost and the appropriate level of project capital return rate, the notice is clear that the benchmark electricity price for onshore wind power projects will be reduced by 2 cents and 3 points for the first, second and third resource areas in 2016 and 2018 respectively. Money, the four types of resource areas are reduced by 1 cent and 2 cents respectively; for the photovoltaic power generation benchmark price, in 2016, the first-class and second-class resource areas will be reduced by 10 cents and 7 cents respectively, and the three types of resource zones will be reduced by 2 cents.

At the same time, distributed photovoltaic power generation projects using building roofs and ancillary sites are allowed to change to the “full online” mode if the conditions are met. The power generation of “full online” projects is met by the grid enterprises according to the local photovoltaic power plants. Benchmark electricity price acquisition.

In the interviews with reporters, the new energy industry generally believed that the price of electricity reduction was in anticipation. Although the price cut was slightly higher than the previous discussion draft, it is still within the acceptable range of enterprises. In the long run, renewable energy must be affordable to compete on the Internet. However, it is necessary to solve the two major problems of subsidy arrears and “abandonment of wind and electricity”, otherwise the industry development will face difficulties.

The Shanghai Securities Journal reporter was informed that in December the National Energy Administration convened relevant large-scale renewable energy enterprises to informally subsidize the amount of arrears. It is expected that the sixth batch of renewable energy tariff surcharges will be published soon, and the photovoltaic and wind power projects connected between September 2013 and the end of 2014 will be included in the subsidy catalogue. People familiar with the matter said that the first quarter of next year or the replacement of arrears subsidies.

The National Development and Reform Commission said that the price adjustment is based on the objectives of the Energy Development Strategic Action Plan (2014-2020), rationally guiding new energy investment, promoting the healthy and orderly development of new energy industries such as onshore wind power and photovoltaic power generation, and promoting the balance of new energy sources. Development, increase the efficiency of subsidies for renewable energy tariffs.

As the relevant state departments gradually improve the current situation of “abandoning the wind” and “abandoning the light”, the adjusted benchmark price policy will still maintain strong support for the new energy industry.

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