Distributed photovoltaic power generation is a key development area for the industry
Release time:
2017-05-06
Data released by the National Energy Administration on May 4 shows that photovoltaic power generation nationwide maintained rapid growth in the first quarter, with new installed capacity reaching 7.21 million kilowatts. Among them, new installed capacity of centralized photovoltaic power stations reached 4.78 million kilowatts, a year-on-year decrease of 23%; distributed photovoltaic power generation reached 2.43 million kilowatts, a year-on-year increase of 151%. New installed capacity shows a trend of slowing down in centralized photovoltaic power stations and accelerating in distributed photovoltaic power generation.
Data released by the National Energy Administration on May 4 shows that photovoltaic power generation nationwide maintained rapid growth in the first quarter, with new installed capacity reaching 7.21 million kilowatts. Among them, the newly installed capacity of centralized photovoltaic power stations reached 4.78 million kilowatts, a year-on-year decrease of 23%; the newly installed capacity of distributed photovoltaics reached 2.43 million kilowatts, a year-on-year increase of 151%. New installations show a trend of slowing down for centralized photovoltaic power stations and accelerating for distributed photovoltaic power generation. Experts say that with the continuous advancement of photovoltaic technology and the continuous improvement of conversion efficiency, against the backdrop of a significant reduction in photovoltaic subsidies, a significant reduction in benchmark electricity prices for photovoltaic power stations, and the short-term inability to solve the problem of "abandoned light," distributed photovoltaic power generation will become the focus of the photovoltaic industry's development.
Due to limitations in rooftop resources, difficulties in project financing, and difficulties in policy support, the installed capacity of distributed photovoltaics has been far below expectations in the past few years. Data shows that in 2014, the planned new installed capacity of photovoltaics was 14 million kilowatts, with 8 million kilowatts for distributed photovoltaics; however, the actual installed capacity of distributed photovoltaics was only 2.05 million kilowatts, only 26% of the planned target. In 2015, the National Energy Administration's proposed targets for new photovoltaic installations no longer specified the specific scale of ground-based photovoltaic power stations and distributed photovoltaic power stations; however, distributed installations accounted for less than 10% of the total.
Starting last year, the installed capacity of distributed photovoltaic power generation has accelerated, with a total of 4.24 million kilowatts of newly installed capacity for the whole year. "Investors are turning their attention to distributed photovoltaics not only because of the severe problem of abandoned light in centralized power stations, but also because distributed photovoltaics are an inevitable trend in the development of photovoltaic power generation." Jineng Technology General Manager Yang Liyou analyzed that distributed photovoltaics are closer to the user side, which can improve the utilization rate of solar energy in areas with high electricity consumption. The form of self-generation and self-use with surplus power grid-connected is in line with the distributed characteristics of solar energy itself.
According to industry insiders, electricity prices are the direct reason for the rapid growth of distributed photovoltaics. According to a notice from the National Development and Reform Commission, starting January 1 this year, the benchmark on-grid electricity prices for newly built photovoltaic power stations in the first to third resource zones in China have been adjusted to 0.65 yuan, 0.75 yuan, and 0.85 yuan per kilowatt-hour, respectively, down by 0.15 yuan, 0.13 yuan, and 0.13 yuan compared to 2016. Distributed photovoltaic projects still maintain an electricity price of 0.42 yuan per kilowatt-hour.
From the distribution of installed photovoltaic power generation capacity, in the first quarter, the "three northern" regions no longer dominated, and the central and eastern regions became the main growth areas nationwide, with 6.39 million kilowatts of new installations, accounting for 89% of the nation's new installations. Among them, distributed photovoltaics became the driving force of growth, with installations mainly concentrated in the four provinces of Zhejiang, Shandong, Anhui, and Jiangsu.
“The shift of photovoltaic projects from the Northwest region, which has better resources, to the central and eastern region indicates that grid absorption and policy environment have become more important factors affecting investment decisions." said the above-mentioned industry insider.
The "13th Five-Year Plan for Power Development" jointly issued by the National Development and Reform Commission and the National Energy Administration previously proposed that by 2020, China's solar energy development target will be more than 110 million kilowatts, of which photovoltaic power stations will be 45 million kilowatts, and distributed photovoltaics will be 60 million kilowatts.
"Distributed generation is an inevitable trend in the global energy revolution." Lian Sheng New Energy Chairman He Yisha said that the arrival of the distributed generation era will have a disruptive impact on the business layout and market structure of new energy enterprises. First, business forms, market opportunities, and financing channels will become more diversified and fragmented. Second, the role of the government in the development of new energy will undergo a major change, transforming from a policy leader and resource allocator to a market supervisor and supporting service provider. In addition, the distributed power trading structure will further promote the reform of the entire power trading market, realizing the value return of new energy power stations through various forms such as contract energy management, competitive on-grid power, and direct power supply.
Although the photovoltaic industry has ushered in new growth points, the problem of "abandoned light" remains a cause for concern. Data shows that in the first quarter, photovoltaic power generation was 21.4 billion kilowatt-hours. Nationwide, about 2.3 billion kilowatt-hours of power was abandoned due to grid limitations. The abandonment rates in Ningxia and Gansu decreased significantly, to 10% and 19%, respectively, down by about 10 and 20 percentage points year-on-year; while the abandonment rates in Qinghai, Shaanxi, and Inner Mongolia increased to 9%, 11%, and 8%, respectively; the abandonment rate in Xinjiang (including the Xinjiang Production and Construction Corps) remained as high as 39%.
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