Don't panic! No subsidy policy has nothing to do with users

Yesterday, the National Energy Administration and the National Development and Reform Commission released a policy on subsidy-free projects, which aroused strong discussion. After all, after so long, the country finally issued a photovoltaic policy.

After this policy was introduced, everyone felt even more desperate. Does this mean there is no subsidy? Today, the National Energy Administration also gave an official interpretation.

1. Projects already connected to the grid are not affected by the new policy

Someone asked Fu Meier that yesterday's policy mentioned that the power company and the photovoltaic power generation unit signed a long-term fixed price purchase and sale contract, not less than 20 years, can we sign it with the power bureau now?

Household photovoltaic projects have a policy that states that it is 20 years (as shown in the figure below, from the policy Notice on Using Price Leverage to Promote the Healthy Development of the Photovoltaic Industry (Fa Gai Price [2013] No. 1638)"), however, power grid companies renew their contracts every 3 or 5 years, and in some regions even every 1 year.

2. Is there any subsidy for PV installation after that?

Official Interpretation 1:

After the "Notice" is issued, will all new wind power and photovoltaic power generation projects no longer enjoy state subsidies?

Promoting affordable (low price) grid-connected projects not immediately removing subsidies for all new wind and photovoltaic power generation projects. At this stage, unsubsidized parity (low price) Internet access projects are mainly carried out in areas with superior resource conditions and a guaranteed market for consumption. At the same time, in areas where unsubsidized and affordable access to the Internet cannot be achieved at present, construction will continue to be organized in accordance with the policies and management requirements for competitive allocation projects issued by the National Energy Administration, but these projects must also undergo substantial competition through competition. Reduce electricity price levels to reduce the intensity of kWh subsidy. In addition, the "Notice" clarifies that the energy authorities of local governments at all levels may, together with other relevant departments, issue local subsidy policies for a certain period of time, and projects that only enjoy local subsidy policies are still regarded as grid parity projects.

Furthermore, yesterday's policy clearly stated that “carry out affordable Internet access projects and low-cost Internet access pilot projects”, Fu Meier speculated that it should be a large-scale ground power station project or a large-scale distribution project type project.

Companies in the notice, except power grid companies, the rest are large energy groups, and they should be responsible for the design and construction of wind power and photovoltaic projects.

1) Land issues are mentioned in the policy

Those that can involve land issues are generally large-scale ground power stations, such as barren hills and coal-sinking areas.

2) Internet access in full, priority to sell electricity, and a large amount of electricity

If it is fully connected to the Internet, and green certificate transactions and electricity market-oriented transactions are carried out, a large amount of electricity is required. If it is a user, just like the previous case, many users need to be bundled together.

Of course, it is not ruled out that major companies will launch new business models and do unsubsidized projects for households, such as renting homeowners.

3. Can household photovoltaic power plants participate in electricity trading?

Official Interpretation 2:

How to ensure the full purchase of electricity for non-subsidy parity projects?

For centralized parity projects, it is clear that power grid companies guarantee power consumption. In principle, the electricity sales of power grid companies guarantee the consumption of grid parity (low price) projects, and centralized parity (low price) projects do not participate in the electricity market. The transaction is guaranteed and consumed by the self-operated electricity sales of power grid companies.

Distributed Nearby Direct Transaction is a special kind of electricity transaction. The project unit and the electricity consumer directly reach the electricity transaction. Under the conditions of nearby consumption in the distribution network area where the grid connection point is located, the grid connection, transmission and consumption of distributed wind power and photovoltaic power generation are still guaranteed by the grid companies playing the role of the grid public platform.

As early as 2017, the National Development and Reform Commission and the National Energy Administration jointly issued the Notice on Launching the Pilot Program of Distributed Power Generation Market Trading (Fa Gai Energy [2017] No. 1901), allowing distribution Participate in electricity trading.

However, it is clear that projects participating in electricity trading must meet the following conditions:

1) The capacity of a single unit is not more than 20MW, and the voltage level of the grid connection is 35KV and below;

2) The capacity of the monomer is between 20 and 50MW, the voltage level of the grid connection does not exceed 110KV, and the nearby consumption is realized within the voltage level range.

4. User subsidy policy, please wait patiently

The state will not refuse to give 19 years of photovoltaic construction indicators, so the household subsidy policy will definitely be released later. Everyone is patient.

Enterprises who want to do unsubsidized projects should note that the policy released yesterday is valid until the end of 2020, that is, the window period is only two years. Only projects within two years can enjoy the above series of support measures. Perhaps two years from now, there will be a large number of wind power and photovoltaic projects that can be connected to the Internet at a reasonable price, and the above-mentioned special support will no longer be given.