Development and Reform Commission to determine photovoltaic power generation benchmark on-grid tariff

The on-grid price of solar photovoltaic power generation benchmarks in China was settled on Monday, and the nationwide unified non-bidding project implemented two standards of 1.15 yuan and 1 yuan per kilowatt-hour. This is expected to install a big development engine for the photovoltaic power generation industry.

The National Development and Reform Commission said on Monday that photovoltaic projects approved for construction before the end of this year and completed and put into operation before the end of this year have an on-grid tariff of 1.15 yuan/kWh (including tax), approved in July and later, and July. Solar photovoltaic power generation projects previously approved but not yet completed and put into operation by the end of the year, except for Tibet, which still implements on-grid tariffs of 1.15 yuan per kilowatt-hour, all provinces (autonomous regions and municipalities) have on-grid tariffs of 1 yuan per kilowatt-hour.

Industry experts said that China's determination of photovoltaic power generation benchmark on-grid tariffs will promote greater development of the photovoltaic industry, but some experts also said that the National Development and Reform Commission has positioned this price as a “national unification” price. It is worrying whether the development of the photovoltaic industry will go up. "The old road of wind power."

“Because of the great diversity of resources across the country, a single on-grid tariff will lead to the concentration of projects in places with good solar energy resources, and most of these places are in the west, which is precisely where the grid connection problem is more prominent.” Lin Boqiang, Director of Energy Economics Research Center, Xiamen University Said.

According to the National Development and Reform Commission, in accordance with the average social investment and operating costs, with reference to the bidding prices of solar photovoltaic power plants and the status of China's solar energy resources, a nationwide benchmark on-grid tariff is applied to non-bidding solar photovoltaic power generation projects.

He stressed that the photovoltaic power price can be determined in different regions to better promote the sustainable development of the photovoltaic industry. At present, the PV on-grid price only covers the cost of the PV power plant's power supply, and does not take into account the uneven distribution costs across the country. If you do not solve the problem of the Internet, photovoltaic power generation may be on the road to wind power, that is, large-scale power generation, but the scale of the Internet is limited.

The National Development and Reform Commission informed and stated that the owner’s solar photovoltaic power generation project was determined through a concession tender, and its on-grid tariff was executed at the bid price, and the bid price could not be higher than the solar PV benchmark price.

The National Development and Reform Commission also stated that for the solar photovoltaic power generation projects that enjoy financial subsidy from the central government, its on-grid power supply is based on the benchmark on-grid tariffs of local desulfurization and coal-fired units.

The part of the on-grid electricity price of solar photovoltaic power generation projects that is higher than the benchmark on-grid tariff of local desulphurization coal-fired units is still in compliance with the relevant provisions of the “Trial Measures for the Management of Renewable Energy Power Generation Prices and Expenses” (Development and Reform Prices [2006] No. 7). The requisition of renewable energy prices is additionally addressed.

"In the future, the Committee will adjust the investment costs according to changes in factors, technological progress and other factors in due course," said the NDRC.