September 09, 2019 Source: Changjiang Business Daily

Recently, the National Energy Administration released the construction and operation of photovoltaic power generation in the first half of 2019. As of the end of June 2019, the cumulative installed capacity of photovoltaic power generation in the country increased by 20% year-on-year, and the national photovoltaic power generation capacity reached 106.73 billion kWh, a year-on-year increase of 30%. After the subsidy new deal is settled, China's photovoltaic industry is still developing rapidly, and the marketization orientation of development in the future is more obvious.

3,921 projects eligible for subsidy this year

In May of this year, the National Energy Administration launched the declaration of the National Subsidy Bidding Project for Photovoltaic Power Generation in 2019, and announced the results of the national subsidy bidding for the 2019 photovoltaic power generation project in July. As of July 1, a total of 23 provinces (Jilin, Heilongjiang, Fujian, Hainan, Yunnan, Gansu, Xinjiang, Tibet, and Xinjiang Construction Corps have not declared) organized 4,338 projects to declare national subsidies for photovoltaic power generation.

Projects to be included in the national bidding subsidy in 2019 cover 22 provinces with a total of 3,921 projects. According to the state's regulations on the national subsidy bidding for photovoltaic power generation projects, the list of projects included in the national subsidy bidding scope is only eligible for subsidies. Whether the project can ultimately enjoy state subsidies, or whether it is built on the basis of the full capacity of the notice. . The state will do a good job of tracking and managing the list according to the actual conditions such as project implementation and construction implementation. For those connected to the grid with overdue capacity, the subsidy for grid-connected electricity price will be reduced by 0.01 yuan/kWh for each quarter of the overdue period; if the grid connection has not been completed within two quarters after the quarter of the declaration, the project subsidy will be cancelled.

The photovoltaic industry still has huge room for development

Since the first photovoltaic concession project was approved in 2009, it has been a full decade. Wang Sicheng, a researcher at the Energy Research Institute of the National Development and Reform Commission, said at a seminar in the first half of this year that China's PV industry has achieved proud results in the past decade. From the perspective of manufacturing, the global market share of China's PV industry chain products in 2018 is: polysilicon accounted for 57.8%, silicon wafers accounted for 89.6%, photovoltaic cells accounted for 72.6%, and components accounted for 72%. In terms of market, the domestic market installed 44.3 gigawatts (GW) in 2018, accounting for 38.5% of the global market. In terms of cost, the average price of PV modules, systems, and Internet has dropped by more than 90% in the past 10 years. In terms of industry scale, the annual output value is 500 billion yuan, and the employed population is 2.5 million. In 2018, the installed capacity of photovoltaics accounts for 9.2%, and the power generation accounts for 2.5% of the national power generation.

The reporter found that the development of photovoltaics has become more rational in recent years, subsidies have been declining year by year, and the market orientation of the industry is obvious. In 2013, China officially implemented the benchmark on-grid tariff policy for photovoltaic power plants in sub-regions, and implemented a tariff subsidy policy for distributed photovoltaic power generation projects. In the same year, in order to achieve PV parity online as soon as possible, since 2013, the benchmark on-grid tariff has been lowered year by year. After four years of electricity price adjustment, the benchmark electricity price in 2018 has dropped by 38.89%, 31.58%, and 25% respectively (the PV poverty alleviation project is not within the range of electricity price and subsidy reduction).

Wu Shengwu, deputy director of the Department of Electronic Information of the Ministry of Industry and Information Technology, said at the seminar held in July this year that after finalizing the PV policy, domestic demand is expected to rebound in the second half of the year. In 2019, the newly installed PV capacity may exceed 40 GW. (GW).

According to industry insiders, in the next 30 years, the global solar photovoltaic industry will have huge room for development, and renewable energy development in various countries will become increasingly important in the proportion of total energy consumption. The cost reduction and efficiency increase have become the trend of the photovoltaic industry, and the global competitiveness of China's photovoltaic industry will continue to increase in the future.