The average investment cost of a large-scale photovoltaic power station is approximately RMB 11/watt. The cost of electricity, construction, commissioning, etc. outside the sub-assembly accounts for nearly 60%. The cost of electricity generation is RMB 1/kWh, which is approximately the same for renewable energy. Times, 2 times wind power.

In recent days, due to the phased imbalance in production capacity of China's photovoltaic industry and the US-European “double reverse” trade survey, the expansion of the domestic photovoltaic market to ensure the stable development of the photovoltaic industry as one of the most competitive nationalities has become the most current Urgent things. Relevant ministries have also issued relevant measures to promote the development of the market. However, how the photovoltaic market is started, where it is cut in, how fast it should be started, and how to keep up with it are worth discussing.

Expanding the Domestic PV Market Facing Six Major Problems Photovoltaic power generation is a new thing and needs a process that is slowly accepted. The coordination of power supply and grid planning and construction, the improvement of subsidy mechanism, the economical nature of photovoltaic power generation, the sources of photovoltaic subsidy funds, and the pace of market initiation are all serious problems facing China's photovoltaic industry.

Accelerating the expansion of the domestic market has become the consensus of the industry. The relevant state ministries and commissions have also made frequent efforts in the near future to launch relevant measures to promote the accelerated development of the domestic market. However, since photovoltaic power generation is a new thing, it needs a process that is slowly accepted. If the pace of development is not well-understood, it will not enter into a dilemma but will not be conducive to the development of the photovoltaic industry.

Coordinating Power Supply and Grid Planning and Construction The profit of photovoltaic power plants is mainly achieved through power generation. This will involve grid access and power transmission issues, ie power supply and grid construction issues. However, photovoltaic power supply construction does not match the power grid construction. The photovoltaic power plant project approvals, equipment production and construction cycle are relatively short. It takes only 6 to 9 months for a 20 MW photovoltaic power station to be built and completed. It usually takes more than two years for the project to go from scientific research and approval to project approval, equipment manufacturing, and engineering construction. This often causes the power supply and power grid construction to fail to match. In particular, at present, large-scale photovoltaic power plants in China are mainly concentrated in the northwest region. These places are at the end of the power grid, and the basic measures for power grid construction are weak, and the local capacity for accommodation is limited. Therefore, the absorption of photovoltaic power requires long-distance transmission to the load center. To build up a series of high-voltage, ultra-high-voltage or even UHV power transmission and transformation devices to increase the voltage in layers, the electricity can be transported to the provincial capital that is several hundred kilometers away and even used thousands of kilometers away. To this end, in addition to subsidies for photovoltaic power generation, the state needs to subsidize the transmission of electricity (grid construction), and at the same time, it must coordinate the construction of the power supply and the construction of the grid. Under the condition that the power grid construction has not yet been effectively deployed, the construction of photovoltaic power plants has been rushed to scale, and disorderly development will only lead to the phenomenon of “sunshine”.

The one-sidedness of the subsidy mechanism At present, the subsidy of photovoltaic power generation is mainly the degree (kWh) of electric subsidy or installed subsidy, and the subsidy target is mainly the owner of the power station, but the subsidy mechanism for the supporting end such as the power grid, peaking power supply, etc. Lacking. Take the grid company as an example, its income mainly comes from the "price difference" between the power generation and the terminal sales. Therefore, for the electric goods, if the quality is good and the price is suitable, the grid company will certainly be willing to accept it. However, on the one hand, due to the volatility, intermittentity, and randomness of photovoltaic power, photovoltaic power may bring a certain impact on the power grid; on the other hand, the use of photovoltaic power may lead to a reduction in the amount of electricity sold by power grid companies, but the photovoltaic power is connected to the grid. The construction and maintenance of the project all need the responsibility of the grid company, but the subsidies did not take into account the grid company. As a result of the risk, it is also necessary to put money down. Therefore, the enthusiasm of grid companies is naturally low. Similarly, for the peaking power supply, due to the peaking of the photovoltaic power station, the number of hours of power generation utilization is reduced, and the output is reduced. Naturally, there are complaints. Large-scale development of PV will also likely affect the economic benefits of other conventional power sources such as thermal power and hydropower. Therefore, the large-scale development of photovoltaic power plants requires overall planning from the entire power system. The introduction of a subsidy mechanism should be able to promote the construction of power grids and peaking power supplies.

The economical issue of photovoltaic power generation The ultimate use of photovoltaic products is power generation, and its potential for development is self-evident. However, since PV power generation is not economical at present, the cost of power generation is about 4 times that of hydropower which is a renewable energy source and 2 times that of wind power. Take this year's subsidy price as an example. The price of a large-scale photovoltaic power station is 1 yuan/kWh, the purchase price of wind power is about 0.5 yuan/kWh, and the local renewable power benchmark price is 0.35 yuan/kWh, and the photovoltaic power is renewable. Energy subsidies are about 0.65 yuan/kWh, while subsidies for wind power are 0.15 yuan/kWh. From the point of view of maximizing the amount of subsidy per unit of renewable energy, the economic development of photovoltaic power generation needs to be improved. In addition, from the perspective of investment in photovoltaic power plants, the average investment of the current system is about RMB 11/watt, and the cost of electricity, construction, and commissioning outside the components accounts for nearly 60%. These costs are mainly related to raw materials, manpower, etc. They are mostly rigid and have less room for decline. Therefore, even if the module prices drop to zero, the initial investment cost of photovoltaic power plants will still be 6 yuan/W, and the cost of power generation will still be 0.5 yuan/kWh. the above. Photovoltaic power generation's parity Internet access (no longer dependent on subsidies) is expected, in addition to the continuous decline in the cost of battery components, etc., but also need to rely on the increase in the use of traditional energy prices, the process is relatively slow, so the economic problem of power generation can not be resolved overnight. However, we should note that the price of electricity in the southeastern coastal areas during the peak hours has reached 1 yuan/kWh or more. If distributed power generation is promoted in these areas and self-use and surplus power are encouraged to access the Internet, this will undoubtedly greatly ease the economic growth of photovoltaic power generation. Sexual issues, therefore, the application of photovoltaic power generation should also consider where to cut in order to improve its economic performance.

Photovoltaic Subsidy Funding Sources According to the experience of photovoltaic market development in major countries in the world, electric subsidy is the most effective, subsidy funds are borne by electricity users, and countries do not need budget support. At present, subsidies for the construction of large-scale photovoltaic power plants in China also adopt this model. Subsidy funds mainly come from renewable energy surcharges. In 2011, the renewable energy surcharge per kilowatt-hour was 8 percent. In 2011, the electricity generation was about 4 trillion kwh, and the renewable energy surcharge was about 32 billion yuan. However, since the surcharge is shared by wind power and other renewable energy sources, and wind power accounts for about 2/3 of the subsidy funds, solar energy can only share the remaining 1/3 with biomass energy. Due to the slower decline in the cost of photovoltaic power generation, it is assumed that the average degree of subsidies for large-scale photovoltaic power stations built between 2012 and 2015 is 0.5 yuan/kWh, which is calculated on the basis of 1,500 hours of full-scale production in the northwest, such as annual new installed capacity. To reach 10 GW, a new renewable energy subsidy of RMB 7.5 billion will be added each year, and the additional renewable energy surcharge per year will reach 1.8 PCT/kWh, coupled with subsidies for wind power and biomass energy surcharges, the pressure will be very high. . In fact, there is already a large gap in renewable energy surcharges. In the past two years, the renewable energy subsidies for photovoltaic power plants have not yet been issued, which has brought great difficulties to the operation of photovoltaic power plants. It is urgent to solve the problem of funding sources.

The pace of market start-up The current domestic market for photovoltaic domestic demand is relatively small, and sales of photovoltaic products rely mainly on the international market. In the absence of a deterioration in the external trade environment, the launch of the domestic market has become popular. However, it should also be noted that the main problem in the current domestic photovoltaic industry is that the imbalance in production capacity is more serious. In 2011, China's photovoltaic capacity alone exceeded the demand of the global photovoltaic market. Module production capacity exceeded 40 GW (global PV demand was approximately 30 GW in the same period), and production was approximately 23 GW, accounting for approximately 60% of global production. Domestic PV demand was only 2.7GW. Starting the domestic market will involve beat issues. If the pace of start-ups is too great, supporting measures such as grid access, subsidy funds, etc., may not keep up, but they will hinder market development; if they are too small, they may not be able to stabilize the domestic photovoltaic market. . In particular, because domestic production capacity is too large, even if the annual new installed capacity is increased to 10 GW, compared with 40 GW of production capacity, only 25% of the demand can be met, which is undoubtedly a drop in the bucket. The rashly release of this signal to the market may result in the resumption of some of the backward production capacity, as well as a new batch of production capacity, which is not conducive to the solution of the imbalance between supply and demand. Therefore, from the perspective of stable development of the industry, the start of the market should be consistent with industry norms and the development of the beat. It is necessary to regulate the market first, eliminate some backward production capacity by setting market thresholds, and then expand the market to achieve the purpose of bailout industry.

Photovoltaic product application model problems Photovoltaic power generation has the characteristics of flexible installation, no noise, no pollution, and is more suitable for use as a distributed power supply in the user load center. The countries with better photovoltaic markets such as Germany, the United States and Japan have brought many lessons to be learned from China's development of distributed generation. However, due to different national conditions, it is necessary to digest and absorb new innovations. For example, if German electricity prices are higher, and their household electricity prices are higher than industrial electricity prices (Germany's and industrial electricity prices are about 0.2 and 0.1 euro/kWh, respectively), roof resources are relatively abundant (small volume ratio). Installation of PV systems on their own roofs, farms, and public buildings does not involve property rights issues, and they are economical, and they can enjoy green energy and fully mobilize the enthusiasm of property owners (similar to consumer electronics). Since the price of electricity in China is the opposite of that in Germany, the price of industrial electricity is relatively high, and the price of electricity for residential use is relatively low. From the perspective of power generation economy, it is more suitable for the development of photovoltaic systems on industrial and commercial roofs such as factory buildings. However, because the photovoltaic power plant needs to operate for 25 years, the owners may install photovoltaic systems on their plants. They may be worried about the use of the plant due to future business changes or transformation and upgrading, while renting the photovoltaic system on the roof of the building may cause concern for 25 years of roof rental. There are restrictions on the use of factory buildings. In addition, the way of leasing may also be restricted by the terms of “power franchise”. For home photovoltaic systems, from the economic point of view, if self-use is encouraged on the basis of electricity subsidies, it is not conducive to increasing the enthusiasm of home users for investment in photovoltaics, and the external economics of solar photovoltaic power generation must be used, such as energy saving, environmental protection, and low Carbon, etc., promote the transformation of photovoltaic products from industrial products to consumer products. Therefore, the market should be started in line with local conditions, according to the characteristics of end-users, and provide a flexible incentive mechanism to cultivate a diverse photovoltaic market.

Responding to the proposal, unifying the understanding, improving the subsidy mechanism, and implementing the grid-connected operation mechanism are the key.

Unified understanding First, fully understand the strategic value and significance of the solar photovoltaic industry, and make overall considerations in the overall deployment of the national energy economy and social sustainable development, implement the “Renewable Energy Law,” and the priority acquisition of photovoltaic power generation by the power grid, It increased the renewable energy surcharge from the current 8 cents to 1.5 cents to solve the problem of sources of renewable energy resources. The second is to strengthen organizational management at the national level, clarify the division of labor and responsibilities of the industrial management, and form a joint force. The Ministry of Industry and Information Technology is responsible for industrial management and standardizes the industry; the National Energy Administration is responsible for the application of photovoltaic products and expands the market; other ministries and agencies coordinate their functions according to their functions, and establish a multi-ministerial joint meeting mechanism to coordinate the resolution of industrial development processes at all levels. problem. The third is to do a good job in the market to start the top-level design, the market's start-up beat should be coordinated with the industry's specifications, with the energy-saving emission reduction, expansion of domestic demand, environmental improvement and co-ordination, set standards, goals, and procedures to gradually and orderly progress in the northwest In the region, large-scale photovoltaic power stations were built, and distributed power stations were constructed in the southeastern region.

Improve the subsidy mechanism First, implement a flexible subsidy mechanism. According to the difference in system capacity and use, take the form of power compensation and installed capacity respectively. For the large-scale photovoltaic power plants, photovoltaic power stations built in industrial parks and other plants, the implementation of electricity subsidies; installed subsidies for photovoltaic systems installed in public facilities such as schools, hospitals, government agencies, or home roofs. The second is to take advantage of the external economic advantages of photovoltaic power generation, integrate solar energy products into energy-saving products and benefit people projects, expand the concept of energy saving, environmental protection, and low carbon lifestyle of solar energy products, and guide the transformation of solar energy products from industrial products to consumer products. Third, implement the tax credit policy, and consider the interests of photovoltaic power stations, power grid companies, and peaking power supply as a whole, and give a certain amount of investment in the access and operation of renewable energy, including the construction of power grids and peaking power supplies. Tax credits. According to the peaking power output, the renewable energy subsidies are shared with photovoltaic power plants in a certain proportion. The fourth is to implement a strong constraint mechanism and promote the renewable energy quota system. It is mandatory for the grid company to trade a certain percentage of photovoltaic power generation each year. The power generation group will annually supply a certain amount of peaking power, and will establish a market for renewable energy quota trading in accordance with the carbon trading model. The fifth is to support social security and other funds into the photovoltaic field. Photovoltaic power plants have the characteristics of large initial investment, stable cash return, and are suitable for investment needs of social security and other robust assets.

Implementing the grid-connected operation mechanism First, scientifically formulate development plans for photovoltaics in all regions, do a good job in the census of solar energy resources in various regions, and make overall plans to consider factors such as energy resources, power supply structure, and transmission corridors, do a good job in the planning of photovoltaic and grid development in various regions, and simplify photovoltaic power plants. Network project approval procedures, and appropriate advance approval of photovoltaic power plant grid-connected project. The second is to improve the construction of related standards and norms. We will do a good job in the formulation of relevant standards and standards for photovoltaic products, photovoltaic systems, and power grid access, improve the detection level, and constantly improve the construction of supporting systems. The third is to do a good job of connecting power supply and grid companies. The grid companies shall participate in the application and acceptance of grid access in the early and later phases of the PV project, and formulate the access system plan in accordance with the grid development plan and the requirements for the photovoltaic power generation development plan. At the same time, according to the grid access technical standards and specifications, the two sides strictly accepted the access work, do a good job of load forecasting and power system stability analysis after grid-connected photovoltaic power generation, rationally arrange the operation mode, improve the level of dispatch management, and ensure the safety and stability of the power system. run.