November 14, 2019 Source: China Securities Journal

The weather is getting colder. From the news from many first-tier manufacturers, the order volume has decreased and the industry has begun to enter the sedimentation period. The expectations of PV people for next year's policies are becoming more and more urgent. The recent news about this aspect is also getting more and more. The more you come. Therefore, Fu Meier summarized the current various news and made a reference for everyone.

I. Regarding subsidies

1. Is there a subsidy?

2020 is a crucial year for renewable energy such as wind power photovoltaics.

According to the "Notice on Improving the Wind Power On-grid Price Policy" issued by the National Development and Reform Commission at the beginning of the year, wind power will fully realize the Internet access in 2021, which means that 2020 will be the last year for subsidies for new wind power projects.

Not only that, the Ministry of Finance, the National Development and Reform Commission, and the National Energy Administration have clearly stated in the "Opinions on Promoting the Healthy Development of Non-Water Renewable Energy Power Generation" and the "Measures for the Management of Renewable Energy Electricity Additional Subsidy Funds". In the year, onshore wind power, photovoltaic power plants, industrial and commercial distributed photovoltaics will completely abolish state subsidies, but whether household PV is included or not is still under discussion. This means that 2020 will become the last year for China's photovoltaic power station (household to be determined) to enjoy state subsidies, and will enter the era of parity in 2021.

So what is certain is that there will be PV subsidies in 2020, and everyone will not have to grab the equipment.

2. What is the subsidy standard?

The subsidy standard continues to decrease. It is certain that the standard for the forecast is from 0.08 yuan/kWh to 0.13 yuan/kWh. However, this year the national document issued a coal-electricity linkage mechanism, and the current desulfurization coal-fired benchmark on-grid price mechanism. It will be changed to a market-based mechanism of “base price + up and down”.

Since the competent authorities should calculate the reasonable subsidy intensity based on the desulfurization coal-fired electricity price, and the basic electricity price becomes unfixed, the calculation of the competent authorities is more difficult, the progress of the policy release will be greatly affected, and the standard introduction will be slower. Everyone has to wait patiently, and the leaders of many local associations predict that they will be introduced after the next two sessions.

However, with this year's experience, I believe everyone will be more patient.

3. Subsidy arrears or relief

The hidden benefit of subsidies is that subsidy arrears will be better resolved over time, after all, the amount of new subsidies will be reduced to no more in the next few years. In terms of solving the problem of stock subsidies, the Ministry of Finance has also given three suggestions. For details, please read this article: About the subsidy arrears The country has identified three solutions!

Second, on the scale of capacity

As a photovoltaic person, it is natural to hope that the subsidy will be as large as possible. In yesterday's vote, most people hope that the scale of subsidies will be 8-12GW next year. According to industry experts, in 2020, the country will have to use at least 8GW of indicators for households, so that everyone can do it until November.

The good news is that the mode of household PV dice management will not change. The policy will be more biased towards household PV. However, some details may be adjusted, and the scale of household projects will also impose certain restrictions. .

Third, some other information

1. Don't expect to help the poor again. 2020 is a year in which the country comprehensively eradicates poverty and realizes a well-off society. Since poverty has been eliminated, there will naturally be no poverty alleviation projects.

2. The subsidy issued a model change. From 2020 onwards, the country will no longer publish a catalogue of renewable energy subsidies, that is, no longer file the declaration of the eighth batch of renewable energy subsidies, and all renewable energy projects will report additional tariff application information through the National Renewable Energy Information Management Platform. According to the principles determined by the Ministry of Finance, the Energy Bureau and other departments, according to the project type, grid connection time, technical level and other conditions, the list of projects that are eligible for electricity price and the order of payment of subsidies are determined.

3. In the new management measures, projects such as PV poverty alleviation, natural person distribution, and voluntary participation in power market transactions can give priority to funds. That is to say, subsidies for household photovoltaics may be issued faster.

4. The ground power station and industrial and commercial power station may still have the last round of bidding opportunities. The upper limit of the bidding limit will be reduced by about half from 0.1 yuan/degree in 2019, and the symbolic meaning will be greater than the substantive meaning. Whether or not the national bidding will be carried out in 2020, the relevant departments are still in discussion.

These are the recent summaries of various policy news, waiting for the start of work, waiting for policy, I hope to give you a reference and hope.