March 07, 2018 Source: China Energy Network

       The 13th National People's Congress (the first meeting) and the 13th National Committee of the Chinese People's Political Consultative Conference (the first meeting), (referred to as the two sessions) are being held in Beijing, as the people of the people The important way of conveying the voice to the Party Central Committee, the NPC deputies and the CPPCC members have shouldered the mission and spared no effort to represent the millions of voters to convey their voice to the Central Committee.

       On February 24, the National People's Congress and CPPCC members were officially announced. Nan Cunhui, Chairman of Zhengtai Group, Chen Kangping, CEO of Jingke Energy, Liu Hanyuan, Chairman of Tongwei Co., Ltd., Cao Renxian, General Manager of Sunshine Power, and Zhong Baoshen, Chairman of Longji, China Li Junfeng, director of the Energy Research Association, was enthusiastically concerned by the industry's proposals and speeches at the two sessions.

       Focusing on the urgent problems faced by the photovoltaic industry, this article has compiled several proposals from NPC deputies to see if Liu Hanyuan, Nan Cunhui, Zhong Baoshen, Cao Renxian, Chen Kangping are all concerned about the problems in the development of the industry.

1. Photovoltaic sub-health development status under the "dual track system" of planned economic system and market economic system

As a product of the planned economic system, PV indicators still exist. How to distribute the indicators reasonably not only makes the energy departments at all levels uncovenious, but also the “dual-track system” of the planned economic system and the market economic system has fostered a lot of room for rent-seeking and corruption.

Therefore, Nan Cunhui suggested abandoning the old ideas of using indicators to control the scale of development, using market-based mechanisms to guide the healthy development of the industry, promoting more market-oriented transactions between power purchasers and power producers, and promoting the completion of photovoltaic power consumption and subsidies. In addition, it is recommended that through competitive bidding, enterprises can fully accept the market test, achieve the effect of survival of the fittest, and guide the industry to develop in the direction of rationalization of scale.

Although the Energy Bureau has issued a notice for the pilotization of distributed power generation market-oriented transactions, the "Notice" has not made detailed regulations on the division of labor and supervision and evaluation mechanisms of the government departments in the process of conducting distributed transaction pilot work, resulting in the declaration of local pilot projects. The power management department of the National Development and Reform Commission and the new energy authority are cross-managed. The lack of clear lead and cooperation units is not conducive to the implementation of pilot projects. The application materials require the power grid enterprises to issue relevant support opinions for the pilot application, including the power consumption capacity commitment letter, etc. The implementation of the pilot work may bear corresponding responsibilities, making the grid enterprises lack enthusiasm for the application of the pilot project.

Nan Cunhui suggested that the supporting responsibility departments and coordination departments of the pilot work should be clarified, and corresponding supervision and evaluation mechanisms should be formulated to urge relevant departments to pay full attention to the development and implementation of distributed power generation market-oriented transactions, so as to lay a solid foundation for the follow-up comprehensive development; According to the data provided by the grid company and legally obtained by the grid company, the power generation capacity assessment report for the distributed power generation pilot project is compiled, the public review is organized, and the grid enterprises are invited to participate in the review and comments, and the results are expertly demonstrated. Improve the enthusiasm of grid companies to participate in the market-oriented trading of distributed power generation, and reduce their responsibility to take risks. Finally, it is recommended that the provincial energy reform and reform departments organize the implementation of the implementation rules for the distributed power generation market-based transaction work as soon as possible according to the actual situation of the region, and accelerate the comprehensive implementation of this work.

2, taxes and taxes are too heavy

Liu Hanyuan listed PV-related taxes and fees mainly including: 25% corporate income tax, 17% VAT and surcharges, as well as more than 20 other taxes, such as sea area usage fees, land use taxes, stamp duty, property taxes, and state subsidies. The income from power generation must be fully paid for value-added tax and additional and corporate income tax; "Only from the perspective of photovoltaic power generation, the cost of taxes per kilowattage has reached 0.17-0.23 yuan, and the high cost of various taxes and fees has become an impact on photovoltaics. High cost, which leads to one of the important reasons for the need for subsidies." Liu Hanyuan said. The high payment of “five insurances and one gold” is an important reason for the heavy burden of photovoltaic enterprises. “Five insurance and one gold” make the burden of enterprises too high, affecting the normal production and operation of enterprises, and it is difficult to accumulate funds to expand reproduction; Improvement will lead to a reduction in the disposable income of employees; it will also affect the employment system of enterprises.

Liu Hanyuan suggested that scientific adjustment of payment standards, reduction of social security contributions; increase of social security expenditures at all levels of finance; direct transfer of part of state-owned capital operating profits to enrich social security funds.

3. Renewable energy price increase tax increase problem

With the continuous development and growth of the photovoltaic industry, the subsidy of photovoltaic subsidies has become more and more like snowballing, which has become one of the most important issues restricting the development of the industry. So far, the state has not issued more effective policies and measures to solve this problem. At the same time, the national subsidy catalogue confirmation cycle and the issuance cycle are getting longer and longer, and the reporting process is cumbersome. The time from declaration to funding has been extended for one year or more, which has aggravated the problem of arrears.

Nan Cunhui suggested that the additional levy standard for renewable energy tariffs should be raised from 0.019 yuan/kWh to 0.03 yuan/kWh, and all electricity should be fully levied; optimize the renewable energy subsidy fund issuance and reporting mechanism. Simplify the reporting and disbursement procedures of current renewable energy subsidy funds, establish an efficient management process for subsidy declaration approval, and propose to change to a quarterly declaration and semi-annual approval to ensure that subsidy funds can be timely and promote the healthy development of the industry. Third, accelerate the establishment of mandatory assessment methods for renewable energy power generation quotas and mandatory binding transactions for green power certificates. Enforce quotas to increase the level of consumption of renewable energy generation, promote the reduction of power generation costs, and weaken dependence on subsidies. Accelerate the work of compulsory trading of green certificates, promote the transfer of subsidies and optimize the distribution of benefits, and avoid the subsidy gap getting bigger and bigger.

Regarding renewable energy subsidies, Li Junfeng humorously played an image metaphor: a mother bought a dress for her when her daughter was five years old, and let her wear it until she was 13 years old. She couldn’t wear it and blamed her for growing too fast.

Cao Renxian also said that renewable energy subsidies are not replenishing renewable energy companies, but environmental costs. He suggested increasing the renewable energy surcharge from the current 1.9 cents to around 3 cents to address the dilemma of renewable energy subsidies.

4. Implementation of the green certificate transaction and renewable energy quota system

As the world's largest green power producer, China still faces a low degree of marketization, the lack of awareness of green power consumption in the whole society, and the lack of smooth market trading channels for green power. Last year, the National Energy Administration and other three departments jointly issued the "Notice on Trial Implementation of the Renewable Energy Green Power Certificate Issuance and Voluntary Subscription System". On July 1, 2017, China's green power certificate officially launched the subscription work, but the subscription transaction is still on a very small scale.

Nan Cunhui suggested to improve the green power certificate trading system, set a list of mandatory purchase entities and a voluntary purchase list. The list of purchase subject types is set by the Energy Development Bureau of the National Development and Reform Commission. Set the validity period, the lowest price and the highest price limit for the green card. Establish and improve the supervision and punishment mechanism for the green card system. Enforce mandatory quotas for renewable energy as soon as possible. Amend the Renewable Energy Law to clarify the priority of renewable energy in China's energy system and stipulate specific indicators (quantity or proportion) for renewable energy development. Establish a differentiated indicator decomposition mechanism, fully consider the historical renewable energy power consumption, resources, power demand and other factors in each province and city, so that renewable energy power is distributed reasonably across the country. The main responsible unit of the mandatory quota shall be clarified, and different mandatory subscription entities shall be determined according to the actual situation, and shall be included in the local government assessment indicators.

5. Distributed photovoltaic market subsidy arrears

The development of distributed photovoltaics is very difficult. Except for Zhejiang, most places have no local subsidy support, and the income of residents is difficult to ensure, resulting in slow promotion of household PV. The subsidy for the payment of electricity in some areas is not timely and often delayed, and the issuance period is even longer than 6 months. The connection time of the residential power station is long, and it takes about 2 months from the application to the completion of the grid connection. The photovoltaic loan financial products are not perfect, and the bank photovoltaic loan business has high cost, high standard, low quota and low efficiency. In addition, the country has lowered the subsidy standard for photovoltaic power generation year by year, and some local subsidies have gradually disappeared. The rate of subsidy decline has far exceeded expectations, which has intensified the pressure on business operations.

Nan Cunhui suggested that the country implement a differentiated PV subsidy policy. Different subsidy standards are applied for household photovoltaics and ground power stations. It is recommended that household PVs be fully implemented with reference to subsidy standards for poverty alleviation. Second, local governments have introduced local subsidies. Referring to the Zhejiang operation model, local governments can introduce local subsidy policies according to local resources. Third, encourage financial institutions to actively support household PV. Banks increased their PV lending efforts and lowered interest rates to improve project service efficiency.

6, the household photovoltaic market chaos

As China's household market has just started, there are photovoltaic industry brand enterprises entering, and many companies with weak professional strength have entered, and there have been uneven credit qualifications, product quality, after-sales service, etc., some dealers, agents, integrated installers. The shoddy, the installation operation is not standardized, the use of residents to the household PV installation and after-sales service lack of understanding, attracting residents with low prices, the quality of the power station is difficult to guarantee, security risks are worrying.

Nan Cunhui suggested that the National Energy Administration authorized or organized the establishment of a household PV professional standardization technical committee to study and formulate specifications, standards and systems for photovoltaic systems and equipment for household use, and to regulate the market access of photovoltaic products. Second, regulate the behavior of market entities. Clearly define the professional requirements and after-sales and operation and maintenance responsibilities of dealers, agents and integrated installers, and eliminate false propaganda to avoid potential quality and safety hazards caused by non-professional installations. Third, clarify and establish relevant regulatory entities. And functions to promote the safe and healthy development of the market.

7. Solve the problem of bad competition such as reselling roads

In recent years, the resale of “roads” has caused an impact on the healthy competition in the photovoltaic market. Due to the ambiguity of relevant policies and the negative window guidance in practice, the transaction structure is complicated and the cost is high, which also increases the commercial risks of qualified investors and excellent partners. Even some projects have been weak due to the follow-up capital and technology investment, and they have not been put into operation as scheduled, and the resources are wasted.

It is suggested that while cracking down on the speculation of “selling roads”, refine the criteria for determining speculative behavior, clarify the criteria for access or formulate “negative lists”, differentiate and encourage the normal trading of the photovoltaic market, and promote the sustainable and healthy development of the photovoltaic industry.

8. Storage problems of renewable energy such as photovoltaics

Due to the volatility, intermittent and random nature of renewable energy power generation, as a forward-looking technology to promote future energy development, the energy storage industry in new energy grid-connected, electric vehicles, micro-grid, home energy storage systems, grid support services, etc. Both will play a huge role. However, the current cost of energy storage is high, and since the scale effect has not yet formed, the cost is also difficult to reduce in a short period of time. In the long run, if it is impossible to achieve profitability, it will be difficult to sustain development.

Nan Cunhui suggested increasing the support for building distributed energy storage systems on the user side. Study and formulate the access policies and technical standards for user-side access to energy storage, and standardize the construction and operation of distributed electrical energy storage systems on the user side. Encourage electricity sales companies and residential users to allocate energy storage, increase the local consumption ratio of distributed energy, participate in demand response, and reduce energy costs. Second, provide policy support and supporting financial measures for the allocation of energy storage in microgrids and off-grid areas. Encourage the improvement of the reliability and power quality of microgrid power supply by configuring a variety of energy storage, and promote the energy storage system to solve or optimize the power supply mode of the electricity-free population. Third, establish a market-oriented trading mechanism and price formation mechanism for flexible resources such as energy storage, encourage storage energy to directly participate in market transactions, achieve profit through market mechanisms, and stimulate market vitality.

9. Sino-US international trade issues

Regarding the current US tariff sanctions on China's PV modules and batteries, Liu Hanyuan said that the current trade measures may not only help the US local enterprises, but will delay the development and utilization of new energy in the United States.

Li Junfeng said optimistically that as the two most important countries in the world economy, China and the United States are each the biggest trading partner of each other. I believe that China and the United States will be able to solve relevant trade problems through dialogue. The politicians of China and the United States have this. Political wisdom.

Cao Renxian said that China's PV industry is fully capable of fully utilizing our current capacity and technological advantages to face the status quo, so we must strengthen our efforts, as long as the products are competitive, we are not afraid to travel all over the world.

10. Interaction between capital markets and photovoltaic industry

Zhong Baoshen believes that solar energy, wind energy and other energy sources have passed the initial investment, and their operating costs are close to zero. From this perspective, it has become the most economical way of generating electricity. If the photovoltaic industry can be favored by the capital market, bring more funds to enterprises, and promote more standardized operation of enterprises, clean energy enterprises will also go more to the capital market, boost the faster and better development of the photovoltaic industry, and realize the capital market. And a win-win situation in the real economy.

"If the country increases industry subsidies and promotes the healthy development of photovoltaic companies, we believe that in the next two or three years, photovoltaic power generation will be available at affordable prices."