Subsidies, electricity prices, rules - 2020 photovoltaic policy is settled, domestic demand is gradually rising

Polaris Solar Photovoltaic Network News:In 2018, the "531" new policy stepped on the sudden brakes of the photovoltaic industry, and as a result, the domestic market entered a period of policy adjustment on the eve of parity. In 2019, the photovoltaic scale management model has undergone major changes, basically following six "determined": the Ministry of Finance sets subsidy plates, the National Development and Reform Commission sets price limits, the Energy Bureau sets competition rules, the enterprise sets subsidy intensity, the market sets construction scale, and the power grid sets consumption limits.

2020, as the last year of the photovoltaic subsidy policy,Photovoltaic policyStill continues the overall framework of 2019. Up to now, the three core policies of subsidies, electricity prices and plan have been implemented.

The Ministry of Finance stipulates subsidies: 1.5 billion, of which 500 million households are used

On January 20, the Ministry of Finance, together with the National Development and Reform Commission and the Energy Administration, issued the "Several Opinions on Promoting the Healthy Development of Non-water Renewable Energy Power Generation" (Caijian [2020] No. 4). In the policy interpretation, the Ministry of Finance stated that since 2020, all new renewable energy power generation projects will be determined by "revenue to determine expenditure". According to factors such as fund collection and electricity consumption growth, it is estimated that the amount of new subsidy funds in 2020 will be 5 billion yuan.

On January 23, the National Energy Administration "On the 2020 Wind Power,Photovoltaic power generationThe Notice on Matters Related to Project Construction (Draft for Comments) clearly states that the total subsidy budget for newly built photovoltaic power generation projects in 2020 is 1.5 billion yuan. Of which 500 million yuan is used for household photovoltaics, subsidized bidding projects (including centralized photovoltaic power stations and industrial and commercial distributed photovoltaic projects) are organized for project construction based on a total subsidy of 1 billion yuan.

The total amount of photovoltaic subsidy of 1.5 billion yuan in 2020 was reduced by half compared with 2019. In 2019, the total subsidy for photovoltaics was 3 billion yuan, of which 750 million yuan was used for household use and 2.25 billion yuan of bidding projects.

The Energy Bureau sets rules: Continue the 2019 bidding rules

On March 10, the National Energy Administration officially announced the "Notice on Matters Related to the Construction of Photovoltaic Power Generation Projects in 2020". According to the notice, subsidized bidding projects (including centralized photovoltaic power plants and industrial and commercial distributed photovoltaic projects) will organize project construction based on a total subsidy of 1 billion yuan. The overall ideas, project management, and competitive allocation methods of competitive allocation work are still implemented in accordance with the 2019 photovoltaic power generation project competition allocation work plan.

That is, the National Energy Administration selects projects included in the subsidy scope based on the revised subsidy application project ranking from low to high. The corrected rules are:

(1) Ordinary photovoltaic power stations and fully-attended industrial and commercial distributed photovoltaic power generation projects: the revised electricity price in Class II resource area = declared electricity price - 0.05 yuan/kWh, and the revised electricity price in Class III resource area = declared electricity price - 0.15 yuan/kWh.

(2) Self-initiated and self-use and surplus power grid-based industrial and commercial distributed photovoltaic power generation projects: the revised electricity price = declared electricity price - the province where the coal-fired benchmark electricity price + 0.3 yuan/kWh, among which the coal-fired benchmark electricity price is less than 0.3 yuan/kWh, the declared electricity price will not be revised in projects in areas where the coal-fired benchmark electricity price is less than 0.3 yuan/kWh.

(3) The declared electricity price is 0.1 cent/kWh as the minimum quotation unit.

Prices set by the National Development and Reform Commission: 0.35, 0.4, 0.49, 0.05, 0.08

On April 3, the National Development and Reform Commission officially announced the 2020 photovoltaic on-grid electricity price. The guiding prices of newly added centralized photovoltaic power plants in Class I-III resource areas are 0.35 yuan (including tax, the same below), 0.4 yuan and 0.49 yuan per kilowatt-hour, respectively. The subsidy standard for full power generation for industrial and commercial distributed photovoltaic power generation projects that adopt the "self-in-house and self-use and balance" model has been adjusted to 0.05 yuan per kilowatt-hour; the subsidy standard for full power generation for household distributed photovoltaic power generation included in the 2020 fiscal subsidy scale has been adjusted to 0.08 yuan per kilowatt-hour.

It can be seen that the largest drop in subsidies was household photovoltaics, down 0.1 yuan from 2019.

After the three major photovoltaic policies at the national level are determined, enterprises participating in the bidding project must declare the on-grid electricity price, and the National Energy Administration will eventually determine the list of bidding projects. According to the Energy Administration's 2020 photovoltaic power generation construction plan, all localities must submit the subsidy bidding projects to be newly built in 2020, declared on-grid electricity prices and related information to the National Energy Administration before June 15, 2020 (inclusive). The application information for parity projects will be submitted to the Energy Bureau before the end of April 2020. Household photovoltaics do not need to participate in bidding. The total subsidy of 500 million yuan and a kilowatt-hour subsidy of 0.08 yuan can support the installed capacity of 6GW. The buffer period scale can be added to the start of construction.

In terms of consumption space, according to photovoltaics, the power grid company has summarized the consumption situation in various provinces to the Power Planning and Design Institute for review. The new photovoltaic consumption space in 2020 may exceed 35GW (including household use), and the optimistic situation may reach more than 40GW.