The new energy policy environment needs to be improved. The National Federation of Industry and Commerce recommends that PV prices float.

In order to solve the increasingly serious environmental pollution problem in China, accelerating the development and utilization of new energy has become an important national strategy. On March 12, the Beijing Business Daily reporter was informed that during the Fifth Session of the 12th National Committee of the Chinese People's Political Consultative Conference, the National Federation of Industry and Commerce submitted the “Proposal on Further Strengthening the Policy Supporting Direction of New Energy Industry”, clearly stating that new energy still faces policy environment in recent years. Unfair, the development of the industry is severely constrained. It is recommended to maintain continuity and graduality in regulating PV on-grid tariffs and reduce the negative impact on the industry.

Specifically, the proposal pointed out that the unfair policy environment in the new energy field is mainly reflected in the large price difference between the old and new energy subsidy prices. Taking coal power as an example, at present, coal power is treated with “cleaning” such as desulfurization, denitrification and dust removal. State subsidies, the subsidy standard is 0.027 yuan / kWh. In comparison, the domestic renewable energy tariff is levied at only RMB 0.019/kWh. Secondly, the proposal believes that there is a significant lag in the issue of subsidies for new energy subsidies in China. In order to promote the development of the new energy industry, the relevant state departments have introduced a series of subsidy policies aimed at encouraging more social capital to enter the new energy field. However, in the actual implementation, subsidy arrears are widespread, which has become the actual return impact of renewable energy projects. And an important factor in investment enthusiasm. In addition, the proposal also pointed out that the problem of poor financing channels for China's support for new energy development is highlighted. "State-owned thermal power plants can generally get the lowest cost financing of the whole society, and new energy companies generally face the problem of financing difficulties and financing. These obstacles directly affect the development of new energy industry." The relevant person in charge of the National Federation of Industry and Commerce said.

In this regard, the proposal suggests that China increase the installed capacity of new photovoltaic energy sources and maintain steady development of the industry. According to the National Electricity “13th Five-Year Plan”, by 2020, China’s PV power generation target will be 105GW or more. If it is calculated according to the lower limit of 105GW (China’s photovoltaic power generation installed capacity of 33GW and accumulated installed capacity of 77GW in 2016), the annual PV power plant scale will be increased. Only about 7GW, if implemented, there will be serious overcapacity in the upstream and downstream enterprises of the photovoltaic industry. It is recommended to continue to implement the goal of “the cumulative installed capacity of solar photovoltaic power plants should reach 150GW by 2020” mentioned in the “Evaluation Draft for Solar Energy Utilization “13th Five-Year Development Plan” of the National Energy Administration.

It is worth noting that the National Federation of Industry and Commerce also recommended that relevant departments further rationally adjust the PV on-grid price range. Specifically, the proposal proposes that the price of photovoltaic Internet benchmarking during the “13th Five-Year Plan” period will be reduced by about 10%, and the on-grid tariff subsidy of the leading-edge technology products will be increased by 5%. In addition, in order to support the development of national photovoltaic poverty alleviation undertakings, taking into account factors such as initial investment in poverty-stricken areas and high construction and operation costs, it is recommended to set a national unified on-grid tariff for photovoltaic poverty alleviation projects, regardless of the light resource area.

In addition, the proposal also proposes that China should further improve the renewable energy subsidy mechanism, strengthen the collection and management of renewable energy funds, and strictly implement the national stipulated fund levy standards.

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