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Multiple departments plan to issue a series of new policies on photovoltaic power generation, fully implementing competitive project allocation.
Release time:
2017-02-17
Reporters learned from the 2016 Development Review and 2017 Outlook Seminar of the photovoltaic industry on the 16th that the Chinese photovoltaic market in 2017 will show a trend of tightening followed by easing, with an estimated increase of 20-30GW in newly installed capacity. Multiple government departments, including the National Energy Administration and the Ministry of Industry and Information Technology, will issue new policies on technological innovation and industrial systems. The most crucial aspect will be the full implementation of competitive project allocation, prioritizing distributed generation.
Reporters learned from the 2016 Development Review and 2017 Prospect Forum of the photovoltaic industry on the 16th that the Chinese photovoltaic market in 2017 will show a trend of tightening first and then loosening, with an estimated increase of 20-30GW in newly installed capacity. Multiple departments, including the National Energy Administration and the Ministry of Industry and Information Technology, will introduce new policies in terms of technological innovation and industrial systems. The most crucial aspect is the comprehensive implementation of competitive project allocation, prioritizing distributed generation.
Data from the China Photovoltaic Industry Association shows that in 2016, China's polysilicon production was approximately 194,000 tons, a year-on-year increase of 17.6%. The annual import volume of solar-grade polysilicon was approximately 136,000 tons (including silicon ingots). The cost of some enterprises has dropped to below 70 yuan/kg. New 5,000-ton electronic-grade polysilicon plants have been built, and high-quality products have been mass-produced in the semiconductor field. In terms of silicon wafers, the output in 2016 exceeded 63GW, a year-on-year increase of more than 11%, and the processing cost per wafer dropped to below 1.4 yuan. The newly installed photovoltaic capacity reached 34.54GW, ranking first globally for four consecutive years, including 30.3GW of ground power stations and 4.24GW of distributed power stations.
“The photovoltaic market is undergoing a dual transformation in layout and structure. The market pattern is shifting from the northwest to the central and eastern regions: In 2016, the northwest region added 9.74GW of new installed capacity, accounting for 28% of the national total; nine provinces in the central and eastern regions added more than 1GW of new installed capacity. The market structure is shifting from ground power stations to distributed generation: New installations of distributed photovoltaic power generation increased by 200% compared to 2015. After August 2016, the monthly grid-connected capacity of distributed generation accounted for about 50%.” Wang Bohua, secretary-general of the China Photovoltaic Industry Association, analyzed that 2016 was the most profitable year for photovoltaic companies in recent years.
The China Photovoltaic Industry Association predicts that the global photovoltaic market will continue to grow in 2017. The Chinese market will show a trend of tightening first and then loosening, with a tight first three quarters and a relatively loose fourth quarter. Driven by multiple factors, including ordinary projects (12.6GW), leading technology bases (5.5GW), photovoltaic poverty alleviation (4.81GW), supplementary indicators (over 10GW), and distributed photovoltaics, the newly installed capacity is estimated to be approximately 20-30GW. Qin Xiao, a researcher at the Hydropower Planning and Design Institute, estimates that the newly added capacity in the first half of 2017 will exceed 10GW.
In response, Xing Yiteng, deputy director of the New Energy Department of the National Energy Administration, pointed out that there is no need to be particularly concerned about or sensitive to the scale indicators. The 105 million kilowatt installation target in the 13th Five-Year Plan is not a binding indicator but rather a lower limit. The primary tasks for photovoltaics in 2017 and throughout the 13th Five-Year Plan period are to promote technological progress, reduce costs, and expand diversified applications.
Under this approach, the keywords for the photovoltaic industry in 2017 are comprehensive competitive bidding and prioritizing distributed generation.
According to reports, in 2016, eight leading technology bases adopted a competitive bidding model for public tendering, with an average reduction of 0.2 yuan per project compared to the local photovoltaic benchmark on-grid electricity Price. This is expected to save 1.5 billion yuan in subsidies. It also presents many benefits, including showcasing the competitiveness of photovoltaics, driving technological progress, and preventing the resale of quotas. “Implementing competitive bidding is an inevitable choice,” said Xing Yiteng, adding that 2017 will see the comprehensive implementation of competitive project allocation and the comprehensive construction of a standard testing and evaluation system.
Wang Weiwei, director of the Electronic Information Department of the Ministry of Industry and Information Technology, also revealed that the next step will be to conduct random checks on photovoltaic manufacturing enterprises to see if they meet relevant entry requirements. At the same time, efforts will be made in intelligent manufacturing in the photovoltaic industry, supporting enterprise technological research and development through various projects. In addition, photovoltaic applications will be vigorously promoted in industrial parks, and new industrialization demonstration bases require that the electricity consumption of non-water renewable energy sources be no less than 1%.
Under such circumstances, Wang Bohua believes that Price reduction will be the main theme, with large enterprises already making deals at 2.9 yuan/watt recently. Costs will drop rapidly, with several companies predicting a drop to below $0.3/watt this year, the key being whether diamond wire slicing and black silicon texturing can be applied on a large scale.
Another important policy direction is to prioritize the development of distributed generation, especially rooftop distributed generation. Xing Yiteng revealed that it is initially considered that only distributed projects on construction land are truly rooftop distributed generation. Standards for rooftop distributed generation voltage levels and capacity levels should also be established, and rooftop distributed generation transactions should be promoted through electricity market reforms. In addition, key support will be given to the construction of leading technology bases, the development of photovoltaic poverty alleviation projects, and priority support for village-level power stations below 300KW.
This approach is also reflected in financial policies. Liu Hongbo, director of the first review bureau of the State Development Bank, introduced that the bank’s important areas of financial support in 2017 are distributed photovoltaics and “photovoltaic +” applications, leading photovoltaic technology demonstration bases, photovoltaic poverty alleviation, photovoltaic power generation going global, energy microgrids, multi-energy complementation, etc.
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