The third round of photovoltaic licensing will be cancelled

On August 26, Wang Sicheng, a researcher at the Energy Research Institute of the National Development and Reform Commission, told this reporter that the third round of PV concession bidding will be cancelled. The reason is mainly due to the release of the “Notice on Improving the On-grid Price Policy for Solar Photovoltaic Power Generation”, which has been significantly higher than the average licensed electricity price for the previous two rounds.

Wang Sicheng said that once the on-grid price is higher than the bidding price, the company will no longer have the enthusiasm to do the franchise bidding project. The significance of this project has actually disappeared, so there is no need to exist anymore.

The withdrawal of the country's core policy to support the photovoltaic industry also marks that China's photovoltaic industry has fully entered maturity. Shen Fuxin, secretary general of Zhejiang Solar Energy Industry Association, told reporters that the photovoltaic industry will be a completely market-oriented mechanism in the future.

On August 1, the National Development and Reform Commission issued the "Notice on Improving the On-grid Price Policy for Solar Photovoltaic Power Generation", which stipulates that the on-grid tariffs approved for construction before July 1, 2011 and completed and put into operation on December 31, 2011 shall be uniformly approved as per kilowatt. At the time of 1.15 yuan; the solar photovoltaic power generation projects approved on July 1 and later, except Tibet still executing 1.15 yuan per kWh, the rest of the provinces are 1 yuan.

And this is just a national standard. After the release of the national standard, Ling Yun, deputy director of the Zhejiang Provincial Economic and Information Committee, said at the photovoltaic industry forum that the PV on-grid price in Zhejiang Province may be raised to 1.43 yuan / kW, which is currently being reported to the State Council for approval.

In contrast, the franchise bid price is only half of the scheduled on-grid price in Zhejiang Province.

The tender price for the first batch of photovoltaic concession tenders for the 10 MW project in Dunhuang in 2009 was 0.69 yuan/kW. The lowest price for PV concession bidding in 2010 was 0.73 yuan/kW, and most of the prices were in the range of 0.82-0.91 yuan/kWh.

Li Shengmao, a senior researcher at China Investment Consulting, believes that from the price mechanism, even if the third round of photovoltaic power generation project license bidding, most companies will set the bid price between 1-1.15 yuan / kWh, the franchise bidding has actually Lost the purpose.

Zhang Jianmin, director of Suntech's power media, revealed that Suntech was involved in the 2010 tender bidding project, but Suntech's winning bid price was above 0.83 yuan/kW. He admits that the lowest price is unprofitable for any company, and the franchise bidding is more like a show, not in line with the characteristics of solar development. The second round of the 280 MW photovoltaic concession bidding project launched in 2010, it is a best proof that 70% of the projects have not started in May this year.

Zhang Jianmin also said that after the introduction of photovoltaic on-grid tariffs, the willingness of enterprises to show off will decline, and more consideration will be given to corporate profits. The withdrawal of chartered bids from the historical stage is also the inevitable result of industrial development.

Zhang Jianmin revealed that due to the boost of domestic PV feed-in tariffs, sales in the German market will increase from 5% in 2010 to 10% in 2011. According to the estimated total output of 2.2GW announced by Suntech in the second quarter of this year, Suntech’s domestic sales this year will reach 220 MW. The projects are mostly distributed in Tibet and Qinghai. In addition to the 10MW power station of the Qinghai 930 project and the solar power station in Tibet, there are also some military and government projects.

LDK said that it did not participate in the franchise bidding.

From the perspective of the establishment of the concession bidding, Wang Sicheng believes that the start of the concession bidding is to determine the average electricity cost of the whole industry by continuously tracking the bidding price of the photovoltaic project, in order to provide a basis for the introduction of fixed PV grid benchmark price. In the current situation that the PV price has been introduced, it is somewhat redundant to conduct the third round of PV concession project bidding.

Li Shengmao pointed out that the concession bidding for photovoltaic power generation projects is a transitional pricing mechanism, which is only applicable to the initial stage of photovoltaic industry development. Because the photovoltaic cost of photovoltaic power generation at this stage is benefiting from the rapid technological advancement of the industry, it is always in the channel of rapid decline. In this context, the use of concession bidding to determine the price of electricity is conducive to maximizing technological progress and reducing government subsidy pressure. When the photovoltaic industry develops to a relatively mature stage, the decline in the cost of photovoltaic power generation is slowing down, and it is more appropriate to adopt a fixed PV grid price policy.

However, Wang Sicheng also said that the current PV grid benchmark price is not static, the current price is only a pilot, the benchmark price is actually an alternative to the concession bidding function. He also revealed that the current price may change in the next year to adapt to the development of the industry.

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