[Some regions have suspended payment of PV subsidies, and the New Deal has affected downstream polycrystalline modules and solar cell market] In recent years, some regions have begun suspending subsidies for PV projects, and some cities have stopped recording new projects. In the downstream market, components and batteries have fallen.
The Hebei Provincial Electric Power Company issued a notice in recent days that the project submitted to the grid application after June 1, 2018 (inclusive) will cease to advance subsidies. The Wuxi City Development and Reform Commission issued a notice on the previous day that all localities suspended the need for subsidized distributed photovoltaic new projects for the record. A photovoltaic company listed component sales personnel said that many downstream manufacturers have begun to clear the goods in the past few days, polycrystalline components, battery tablets have fallen prices.
The National Energy Administration disclosed on the official website yesterday that on the morning of June 6, the New Energy Division of the National Energy Administration held discussions with representatives of some companies of the Photovoltaic Industry Association. Relevant officials emphasized at the meeting that the country’s direction for the development of photovoltaics is unwavering and its support for the photovoltaic industry remains unwavering.
Officials of the Energy Administration also said that the next energy bureau will focus on making the seventh batch of renewable energy subsidies list, intensifying the reform of electric power, promoting pilots for distributed power generation marketization, accelerating the deployment of renewable energy power quotas, and expanding Photovoltaic power generation and other work to support and promote the development of the photovoltaic industry.
However, the reporter learned from all parties that some areas have recently begun suspending subsidies for PV projects, and some cities have stopped the addition of new projects. In the downstream market, components and batteries have fallen.
PV subsidy pressure is increasing
The reporter learned that the entrepreneurs who participated in the forum included the Chairman of China Photovoltaic Industry Association, Gao Jifan, Chairman of Trina Solar, Cao Renxian, Chairman of Solar Power, Liu Hanyuan, Chairman of Tongwei, and Zhong Baoshen, President of Longji. Ke Li, chairman of Power, and Xia Haibo, vice president of Atos (China) Investment Co., Ltd.
At the symposium, relevant officials of the National Energy Administration stated that in recent years, under the support of national policies and the joint efforts of the industry, China's photovoltaic industry has achieved remarkable results, and has become the world’s largest producer of photovoltaic products and the largest photovoltaic installation country, nurturing A group of global leading photovoltaic manufacturers. The fundamentals of the development of the photovoltaic industry are good and the potential for development is enormous.
Officials of the Energy Administration also pointed out that with the rapid growth of photovoltaic power generation, some areas have also experienced more serious problems of abandoning light and power, and the pressure for photovoltaic subsidies is increasing, which is not conducive to the sustained and healthy development of the photovoltaic industry. The purpose of this document is to adapt to the actual development of the photovoltaic industry, promote China's photovoltaic industry to improve quality and efficiency, and achieve high-quality development and sustainable development.
New Deal Affects Downstream Component Market
A photovoltaic company listed on the sale of components Jiao Jie (a pseudonym) told reporters yesterday, the Shanghai Daily, many downstream manufacturers have started this time a clearance cargo, polycrystalline components, batteries have fallen prices.
At the same time, subsidies for photovoltaic projects have been suspended in some regions. This reporter learned that the Hebei Provincial Electric Power Company issued a notice recently that the project submitted to the grid application after June 1, 2018 (inclusive) will stop advancing subsidies. As for the project that had obtained the grid connection index before June 1, 2018, but the construction was completed after June 1st (inclusive), or the project under construction was issued in accordance with the latest subsidy after the downward adjustment.
In addition, the Wuxi City Development and Reform Commission issued a notice the day before that all localities suspended the need for subsidies for distributed photovoltaic new projects for the record.
S&P Global Ratings Analyst Lu Wei stated yesterday that the New Deal will make the upper-middle-stream PV module suppliers more affected, and their impact on downstream PV power plant operators will be limited. It is expected that the gradual phase-out of government subsidies and the adoption of competitive bidding for new photovoltaic power generation projects will increase the competitiveness of the photovoltaic industry in the energy sector.
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