Electricity price auction: The best option for the National Energy Administration's photovoltaic subsidy closing?

Why is the PV price auction system the best option for the National Energy Administration to speed up the PV average online process and reduce the subsidy gap? North Korea has recently launched missiles and claimed to be able to directly hit the United States. The US military has proposed the best "option" for North Korea to block sanctions against North Korea, but it needs China and Russia to support it. The National Energy Administration should continue to expand and promote photovoltaics by holding down the PV subsidy gap. The electricity price auction system must be fully coordinated by the provinces and local governments. I. Zhang Guobao, the first director of the National Energy Administration, advocated the PV price auction system. From the perspective of photovoltaics gradually escaping from subsidy development, Zhang Guobao, the first director of the State Energy Bureau , proposed to develop electricity prices for PV power plants in 2015. Auction construction experience. 04101652484264.jpg (Zhang Guobao, the first director of the National Energy Administration) from Zhang Guobao proposed to introduce the photovoltaic power station auction system, the international auction system for photovoltaic power prices has matured, and the electricity price has reached a new low, and the PV price has reached or even fallen below the traditional petrochemical energy; After two years of practice in the country (2018 has not yet started), it has already begun to bear fruit. The average ground power station of the Anwei non-runner project has already sold the price of 0.56 yuan per degree in 2017, and the second runner-up in Inner Mongolia in 2016. The transaction price of 0.56 yuan was also found in the project. The photovoltaic power station price auction system, as the main option for countries to promote affordable Internet access measures, its status and role is increasingly important. Second, the National Energy Administration photovoltaic power station price auction system top design and road map Although the National Energy Administration did not make the price of electricity auction as an independent concept, but in 2016 has begun to practice, review process: (1) 2016 National Energy Administration In the national PV power plant indicator issue document that year, it was first proposed to encourage all localities to use the matching bidding price method to generate photovoltaic power station project development enterprises, and some provinces and regions implemented that year. (2) In the 2017 National PV Power Plant Index Issue Document, it is emphasized that in principle all projects adopt the price reduction competition method, and the actual implementation is more than half. (3) The third batch of front-runners issued the documents again, stipulating that 100% of the bidding must be adopted, the electricity price is the main bidding condition, and the peripheral conditions are clearly defined. At present, the basic situation is that the front-runners and ground power stations are fully promoted. The new PV policy for industrial and commercial households also encourages local governments to use electricity price bidding. Only photovoltaic poverty alleviation projects and household PVs have green lights, while PV poverty alleviation local governments basically adopt fixed electricity prices. The project's overall EPC cost bidding method has an indirect effect on electricity price control and reduction. Third, the photovoltaic power price auction has matured in international operation experience, interpreting the international PV price auction system. The international governments have been matured through many years of practice and photovoltaic power station price auction system. The direct effect is that the electricity price is lower than the petrochemical energy price, and the subsidy effect is obvious. The international experience is mainly manifested in three aspects: (1) Time-for-space: set the construction time for a period of time to auction: We saw the low electricity prices in Abu Dhabi and Mexico, and the contract was concluded in 2019. Why is competition fierce, participating in auction enterprises during the implementation of the construction period, judging the continuous reduction of PV module prices and continuous technological advancement, have a direct effect on reducing electricity prices; individual countries even auction planning projects three years ahead of schedule, in order to facilitate the preparation of the preliminary work of the project, Orderly advancement. (2) The competent government department presides over the auction: Under the conditions of implementing the construction conditions and supporting policies, the competent authorities of the government are officially organized by the Ministry of Energy. The government is not only responsible for handling the construction sites, grid access, and setting up a one-off The government contract for the 20-year power purchase, through the government contract method, allows investors to participate in the auction with confidence, which is also an important reason for the low electricity price. (3) Government low-interest financing facilities: the Ministry of Energy of the host government and relevant international financial organizations, or the financial organizations of the host country provide green loans of generally no more than 2%; Abu Dhabi project Chinese enterprise Jingke participates and wins the bid, The project Asian Development Bank provides a matching financing loan with an interest rate of no more than 2%. The winning bidder in Mexico is the Italian National Electric Power Company, or its own supporting government low interest rate funds; supporting low interest rate funds is an important factor in generating low electricity prices. Looking at the construction of solar power plants in India, the price of electricity is lower than that of China, and international financial organizations have played an important role in it. 04101234432946.jpg (ofweek research center international electricity price auction chart) Due to the above three factors, the international photovoltaic power station price auction is tired and low. Fourth, domestic operation and learning from international experience: Photovoltaic leader is the first to take the lead, An Wei has already shot low prices, but if you solve two problems further, low electricity prices and parity online are just around the corner. (1) Promote the experience of the front runners: After three phases of exploration, the front-runners adopt the production factors such as project construction land, power grid construction, consumption, local policy support, etc., and all parties are required to make legally binding commitments before the approval. The core part of the most fundamental foundation of the auction system has also been linked to the international level; the experience of implementing the construction conditions for the front runners has been copied to the ground power station, and the ground power station has started a comprehensive auction with a very good reference standard. (2) The National Energy Administration has further played its role: At present, international financial institutions, including China-led Asian infrastructure investment banks, have the ability to obtain a large amount of bottom-rate funds; with reference to international experience, the Energy Bureau and various financial institutions have signed agreements. In an internationally recognized front-runner project, no matter which qualified enterprise wins the bidding project, 70-80% of the international financial institutions can obtain no more than 2-3% annual interest rate loans, and the policy is extended to the ground power station and industrial and commercial distribution. The average Internet performance is immediate. V. Comprehensively promoting the evaluation of photovoltaic power price auctions The most important foundation and premise for promoting parity online access is the standard and standardization of the preliminary work of photovoltaic power plant projects. After several years of large-scale development, national, local, and enterprise standards for core production factors of photovoltaic power plants in the early stage. The norms basically form a consensus, and there is a good foundation for the implementation of comprehensive electricity price auctions. JHC Yin Cunqi believes that even if the international financial institutions have not yet resolved the participation of low-interest funds, the 2018 comprehensive promotion of photovoltaic power station price auction system, on average The online process will have a positive effect. (1) The completion period of the third phase runner base will be relaxed until the end of 2018. The auction time will be until March 31, 2018. The judgment of the component supply price in October 2018 will basically determine that the average price will be lower than the benchmark electricity price by 20%. The above and individual projects are even close to the parity feed-in tariff. (2) Half of the provinces in 2017 have already implemented the bidding effect of the owners and electricity prices. The main reason is that the preliminary work of the project is mainly for enterprises, rather than the front-line construction conditions for the front-runners. In the implementation of the auction system for the ground power station, the role of the leading role of the preliminary work needs to be changed; in some provinces and regions, due to the long queue time, the effect has already appeared, and the result of the implementation of the electricity price auction: even if the national energy source does not have the annual benchmark electricity price policy, the average price of the actual electricity price is not lower than the average. 10%. (3) 2018 is the first year of the auction of electricity prices for industrial and commercial distributed photovoltaic power plants; since most provinces and regions use indicators for photovoltaic poverty alleviation and photovoltaic poverty alleviation are the middle grounds, it is only natural for the interests and policies of poor households to be green. Sixth, to promote the photovoltaic power price auction system, beware of the negative effects of low-price winning bids, play the role of independent third parties in the implementation of the auction system, but also to prevent low-price winning bids affect the quality. Some enterprises have lowered their expectations during the construction period, and reported abnormally low electricity prices to win the bid, but the actual situation has changed, resulting in abortion of the project; recently there is news that the Indian auction also exists, and even developers are ready to give up the winning bid, China The second-phase PV front-runner base project is due to the fact that the component price is not within the expected range this year, and individual projects are stagnant; the overall EPC of the PV poverty alleviation project, some enterprises disregard the quality of the project, and even caused criticism from the People’s Daily; In terms of front-runner projects, the relevant provisions of the National Energy Administration, but many aspects of local projects are not clear enough. Drawing on international experience and giving full play to the role of independent third-party institutions: full implementation of the PV price auction system, the need for authoritative independent third-party unified standards in the early stage, construction period, acceptance, asset delivery, and financial participation of PV power plant projects, and Throughout the whole process, the improvement of relevant preliminary work, the guarantee of project quality and the fairness of assets are the key. Seventh, the PV subsidy gap measurement, or up to the trillion to assess through the subsidy gap, understand the importance of the auction system to the photovoltaic subsidy. (1) 50G will be put into operation in 2017, the average utilization will be 1200 hours, the subsidy will be 0.4 yuan, the annual increase will be 24 billion yuan, and the annual increase will be 480 billion yuan. (2) 2018 subsidy 30G (estimated), average annual utilization of 1200 hours, subsidy 0.25 yuan, annual increase of 9 billion, 20 years 180 billion. (3) In 2019, the subsidy is 30G (estimated), the annual average is 1200 hours, the subsidy is 0.15 yuan, the annual increase is 5.4 billion, and the annual income is 108 billion. The total annual subsidy for the three years is 40.2 billion yuan, and the total amount for the 20 years is 804 billion yuan. The average utilization time of 70G before 2017 is 1,250 hours, the comprehensive subsidy power is 0.45 yuan, the annual subsidy is 39.375 billion yuan, and the 20 years is 787.5 billion yuan. When the two are added together, the annual subsidy for photovoltaic power stations will be 79.575 billion yuan, and the total amount of subsidies for the 20 years will be 159.1 billion yuan. The huge subsidy gap has forced the National Energy Administration to accelerate the implementation of the PV price auction system. VIII. Summary After three years of high-speed construction of China's photovoltaic power plants, the state, local governments, and enterprises have a clear consensus on the characteristics of all aspects of photovoltaic power plants. It is the basis for deepening the promotion of photovoltaic electricity price auction system, laying a solid foundation, transparent and fair photovoltaic power prices. The auction system has also promoted the activeness of green finance and the process of international integration. The implementation of the PV price auction system has become the best "option" for the National Energy Administration to subsidize the collection. Author: JHC Yin Qi deposit

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