China's photovoltaic industry encounters "three big mountains"

China's photovoltaic industry is encountering "three big mountains." According to statistics, the “three north” region and even the country have abandoned wind and abandoned light, and the new energy enterprises have a maximum power limit of 79%.
“Abandonment of up to 30%, subsidies owing a two-and-a-half-year gap of 40 billion yuan, and land use problems are becoming apparent. This is a short-term difficulty in the 'three big mountains'.” At the recent 2015 PV Review and 2016 Outlook Seminar Wang Bohua, secretary-general of the China Photovoltaic Industry Association, said: "The interest game between new energy and fossil energy, the full acquisition of renewable energy has not been effectively implemented, and the lack of power grid construction is an important factor in power cuts. In the face of current downward pressure on the economy, The electricity problem has no solution in the short term."
Then, what is the reason for the abandonment of light and abandonment of electricity, and where is the fundamental way to solve the problem?

Western planning rapid support construction lags behind
Gansu New Energy is the epitome of the entire western region. In Shaanxi, Ningxia, Qinghai, Xinjiang and other provinces and regions, a new round of development is also planned. However, the construction plan of the power plant and the power grid is inconsistent, especially the approval of the UHV project is slow, so that the new energy in the west of the big shop generally faces difficulties in accessing the Internet and mass abandonment.
“A wind power project takes one year to complete, and a photovoltaic power plant is faster. It can be completed in about half a year. However, the construction of a 330KV power grid project needs a minimum of two or three years. The three are not proportional, so the power grid construction needs to be done. To plan ahead.” Tian Chao, a spokesperson for Trina Solar Limited, told the China Enterprise News that in the face of the 0.5% year-on-year increase in electricity consumption in the whole society in 2015, the expectation of full power generation in the northwest region It is almost impossible to achieve. “The increase in electricity consumption is almost zero. It is a difficult choice for any local government to sacrifice the power generation hours of thermal power companies to increase the utilization rate of new energy. After all, traditional energy has some advantages in some aspects. Big 'power'."
It is reported that at present, the power operation scheduling largely extends the traditional planning mode. The annual operating hours of various power plants are mainly determined according to the annual power generation plan. The local economic operation authorities even issue power generation plans for each unit, due to the annual thermal power generation. The plan is a rigid plan, and thermal power companies and local governments are reluctant to let out the electricity and electricity space. The scheduling has to limit the power space for renewable energy generation in order to complete the thermal power annual plan. This "planning" approach cannot adapt to the characteristics and needs of new energy volatility, and cannot guarantee the priority of renewable energy power generation.
Some experts in the industry pointed out that the current areas of "abandonment of light" in the country are mainly concentrated in the four provinces of Gansu, Qinghai, Xinjiang and Ningxia in the northwest, with Gansu's light rejection rate reaching 30.7% and Xinjiang's 22%. The direct causes of the problem of abandoned light are as follows: First, the construction speed of photovoltaic power plants in the northwest region has obviously accelerated, lack of overall planning, lack of matching with the transmission grid and market, and there is a certain disorder; second, the scale of photovoltaic power generation construction and local load level are not Matching, market consumption capacity is limited, while power station construction and supporting power grid construction and transformation are not coordinated; Third, local governments blindly pursue GDP indicators, the country's development of new energy policies and regulations are ignored, and power market reforms are difficult.
In addition, Wang Bohua believes that the nature of land and land taxes and fees are also becoming apparent. Due to the different evaluation standards of relevant departments, the impact of cultivated land occupation tax and land use tax has pushed up the cost of photovoltaic power generation, and local sponsorship and Industrial investment abounds, and some places even allocate projects to related households. "If this continues, the new energy industry will fall into a vicious circle as a whole, and the adjustment of the industrial structure will be reduced to nothing."

Get rid of subsidies and innovation to reduce costs
According to data from the Ministry of Industry and Information Technology, from January to September 2015, China's PV-related industry investment was 80.79 billion yuan, a year-on-year increase of 35.8%. It is reported that in order to further promote industrial development, this year, the National Development and Reform Commission and the Energy Bureau will guide enterprises to reduce PV costs through the implementation of the “Leader” program and the competitive electricity price policy.
Lin Boqiang, director of the China Energy Economic Research Center of Xiamen University, said in an interview that although China's PV market faces problems such as local power cuts and subsidy arrears, it will gradually solve the problem of upgrading renewable energy and optimizing the scale of power station indicators. It is expected that in 2016, China's PV installed capacity will reach more than 20GW in the year under the “leaders” plan and the price increase brought by the price cut.
The National Development and Reform Commission issued a circular on the "Notice on Improving the Electricity Price Policy for Onshore Wind Power and Photovoltaic Power Generation" issued in October last year. It is clearly stated that during the "13th Five-Year Plan" period, the benchmark electricity price for onshore wind power and photovoltaic power generation will follow The scale of development has been lowered year by year. The category I area will be lowered from the current 0.9 yuan / kWh to 0.72 yuan / kWh. The downward adjustment of the on-grid price has forced companies to reduce costs through technological advancement as soon as possible.
In fact, most PV companies have gradually transformed from “manufacturing” to “intelligence”. In the upstream intellectual development, the market is currently in a polarized situation. The leading component companies are basically in full production, while the second and third-line PV companies have fewer orders and the living space is continuously squeezed. Within the industry, a consensus has been reached that “is eliminated without innovation”.
It is understood that the leading component companies have R & D laboratories, many companies have achieved technological breakthroughs; some enterprises have realized the intelligent interconnection of equipment, reducing the labor input. The experimental conversion rate of Trina Solar single crystal silicon has reached 24.4%; the company needs 1.5 million components to produce 1.6GW components four years ago, and now only needs 12,000 people to produce 6GW components. The company has already set a breakthrough record for 10 products and technologies.
Gao Jifan, chairman of the China Photovoltaic Industry Association and chairman and CEO of Trina Solar Limited, has repeatedly stated that the core of the new energy industry is to reduce costs through technological advancement and innovation. Energy changes include the use of renewable energy and the wisdom of energy. “Tianhe has always used Hechuang Smart Energy as the basic strategy for enterprise development.”
The above-mentioned industry experts also believe that the reduction of costs through technology upgrades and the realization of affordable online access to renewable energy are key factors in advancing the energy revolution. Because only renewable energy can achieve affordable Internet access and get rid of subsidies, large-scale applications can be realized.

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