The National Energy Administration answered questions on the "5·31" PV New Deal related questions (with original text)

On June 11, the National Development and Reform Commission and the National Energy Administration jointly held a press conference on "Notice on Matters Related to Photovoltaic Power Generation in 2018" (Development and Reform Energy [2018] No. 823), and interpreted the background and details of the document.

The following is a partial statement of the relevant leaders of the conference:

Achievements of China's photovoltaic industry

The National Development and Reform Commission and the National Energy Administration have conscientiously implemented the Renewable Energy Law and the State Council's Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry (Guo Fa [2013] No. 24) to actively promote the development of the photovoltaic industry. With the support of national policies and the joint efforts of all parties, photovoltaic development has achieved remarkable achievements. It has grown into one of the few industries in China that simultaneously participate in international competition and industrialization, and has played an important role in promoting energy transformation. effect. In summary, there are the following points.

First, the scale of installed capacity continues to expand, and it has become the world's largest application market. China's new installed capacity of photovoltaic power generation has been the world's number one for five consecutive years. The cumulative installed capacity has ranked first in the world for three consecutive years. The annual average installed capacity growth rate during the “Twelfth Five-Year Plan” period exceeded 50%, entering the “13th Five-Year Plan” period. The construction speed has been further accelerated, with an average annual installed capacity growth rate of 75%. In 2016, the newly installed grid-connected installed capacity was 34.24 million kilowatts. In 2017, the newly installed grid-connected installed capacity was 53.06 million kilowatts. As of the end of 2017, the cumulative installed capacity of photovoltaic power generation in the country reached 130 million kilowatts. As of the end of April 2018, the installed capacity has exceeded 140 million kilowatts.

Second, photovoltaic technology continues to innovate and break through, and has formed a complete photovoltaic industry chain with international competitiveness. In recent years, China's photovoltaic industry has been transformed from a typical world processing base of “two heads out” into a global photovoltaic innovation and manufacturing base. The level of photovoltaic technology and the quality of production continue to increase. In 2017, the domestic component production reached 75 million kilowatts, accounting for 71% of the world, and continuously broke the world record of high-efficiency battery conversion efficiency. In 2017, China's top 10 PV module companies accounted for 8 in China. The international competitiveness has improved significantly.

Third, the regulations and policies have been continuously improved, and the market environment that is suitable for PV development has been gradually built. The "Renewable Energy Law" was promulgated and implemented, especially since the State Council issued Guofa [2013] No. 24 in July 2013, China has successively issued a series of policies and measures to promote the healthy development of the photovoltaic industry, only the National Development and Reform Commission and the Ministry of Finance. The Ministry of Industry and Information Technology, the National Energy Administration, the Ministry of Land and Resources and other relevant departments support and regulate the development of the photovoltaic industry, nearly 100 policy documents, covering the relevant aspects of product manufacturing, market applications, fiscal and taxation, prices, subsidies, land management and other industrial development. Quickly create a complementary and supportive policy environment conducive to industrial development. At the same time, local governments have also introduced relevant policies and measures to support the development of photovoltaic power generation.

Difficulties and problems facing the industry

While achieving remarkable results, photovoltaic development has encountered some difficulties and problems, which are highlighted in:

First, the subsidy gap continues to expand. As of the end of 2017, the accumulated subsidies for renewable energy power generation totaled 112.7 billion yuan, of which the photovoltaic subsidy gap was 45.5 billion yuan (accounting for about 40%), and it is expanding year by year. Currently, it has exceeded 120 billion yuan, directly affecting the health of the photovoltaic industry. Orderly development. If this extraordinary growth continues, the financial subsidy gap will continue to expand, which will have a more adverse impact on the development of the industry.

Second, the problem of consumption cannot be ignored. With the rapid increase of photovoltaic power generation, some places have also experienced serious problems of power-off and power-off. In 2015, the national light rejection rate was 12%. In 2016, the light rejection rate was 11%. In 2017, through various efforts, the light rejection rate dropped to 6%, but some places are still very serious. Gansu and Xinjiang have abandoned light yields of 20% and 22 respectively. %. In the first quarter of this year, the amount of discarded light was 1.624 billion kWh, and the light rejection rate was 4%, down 5.3 percentage points year-on-year. Although it has improved, it is still not stable.

Third, there are hidden dangers in overcapacity. Stimulated by the rapid growth of the domestic photovoltaic power generation market, photovoltaic manufacturing enterprises have expanded their production capacity. The problem of overcapacity in photovoltaic manufacturing, quality of products and power station construction has also emerged. The existence of the above problems is not conducive to the healthy and sustainable development of the industry. It is necessary to guide the market and the industry to adjust the development ideas according to the new situation, and to shift the focus of photovoltaic development from expanding to upgrading and efficiency, and promoting technological progress, reducing power generation costs and reducing Subsidy dependence, thus promoting the orderly development of the industry and high quality development.

The background of the new PV strategy

In order to fully implement the requirements of the party's 19th National Congress to strengthen the clean energy industry and promote the high-quality development of the photovoltaic industry, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration have organized relevant parties to optimize photovoltaics since the end of 2017. Development policies such as industrial scale management, electricity price mechanism, and market-oriented institutional mechanisms have been carefully studied, and policy formulation and document drafting work have been initiated. In the process of policy research and formulation, we draw on the experience of Germany, Spain, Czech Republic and other countries, and solicit opinions and briefings through various consultations (February) and press conferences (April). The local development and reform commission (Energy Bureau), relevant grid companies' opinions and policy announcements. After repeated revisions and repeated arguments, the Notice was officially issued on May 31.

The promulgation of the "Notice" is not only an important measure to implement the structural reform of the supply side, but also to promote the high-quality development of the economy. It is also an important measure to alleviate the prominent contradictions and outstanding problems such as the subsidy gap and the blackout of electricity in the photovoltaic industry. This is an inevitable requirement for the development of the photovoltaic industry to enter a new stage, and the issuance of the "Notice" is very necessary. It plays an important role in achieving the sustainable and healthy development of the photovoltaic industry.

First, it is conducive to alleviating the pressure of financial subsidies. The continued expansion of the financial subsidy gap is a prominent problem that currently restricts the development of photovoltaics. The State Council's "Opinions on Promoting the Healthy Development of the Photovoltaic Industry" (Guo Fa [2013] No. 24) clearly stipulates that the scale of photoelectric development is in line with the scale of the National Renewable Energy Development Fund. Appropriately reducing the scale of new construction that requires subsidies will avoid the formation of systemic risks, which will be beneficial to industrial development in the long run.

Second, it is conducive to solving the problem of consumption. Since last year, through the efforts of all parties and a series of measures, the issue of light abandonment has been effectively improved, but it has not been completely solved. Not only has the problem of PV consumption in the western region been solved yet, but also with the rapid increase of distributed PV installations, it has also been given to the east. The safe operation of distribution networks in some areas has brought new problems. By adjusting the pace of development, it helps to solve the problem of PV consumption and reduce the abandonment of light.

Third, it is conducive to stimulating the development of endogenous power. As the subsidy intensity of photovoltaic power generation declines, it will force enterprises to practice internal strength and physical fitness, from relying on national policies to relying more on market transformation, reducing subsidy dependence, and encouraging enterprises to improve the quality of enterprise development and reduce the quality of enterprises through the cost reduction and efficiency improvement. Survival of the fittest, accelerated elimination of backward production capacity, forced industrial technology advancement, curbed irrational expansion of enterprises, promoted the concentration of industry resources to high-quality enterprises, further consolidate the leading position of the photovoltaic industry in the world, and cultivate a group of world-class leading manufacturers of photovoltaic manufacturing.

Fourth, it is conducive to promoting local reduction of non-technical costs and improving the business environment. After the subsidy is lowered, in order to ensure the economic efficiency of photovoltaic power generation projects, on the one hand, enterprises will reduce costs through technological advancement, on the other hand, they will also help local governments implement various national and local policies to support the development of photovoltaic industry and reduce non-technical costs.

Future work direction

Photovoltaic power generation is a green and clean energy source, which is in line with the direction of energy transformation and plays an important role in the energy revolution. Cultivating and expanding the clean energy industry and supporting the development of clean energy such as photovoltaic power generation are important contents of the energy production revolution and the consumer revolution. The National Development and Reform Commission and the National Energy Administration will continue to support the healthy and sustainable development of the photovoltaic industry. Promoting the sustainable and orderly development of the photovoltaic industry and high-quality development are the common responsibilities and goals of the industry. We will continue to work with industry units to strengthen research related policy measures.

First, we will promptly study the roadmap for the marketization of photovoltaic power generation, make overall considerations for non-fossil energy consumption targets, grid consumption capacity, and financial subsidy strength, improve the “13th Five-Year Plan” PV development goals and the scale of development in the next few years, and rationally grasp the development rhythm. .

The second is to vigorously promote distributed market-oriented transactions. The measures have been issued, and the pilot programs are currently being proposed in various places. We will promptly negotiate and reply. In the future, we must constantly improve the business model and operation mode, making distributed market-oriented transactions become an important direction for the development of distributed photovoltaics, and become a new breakthrough and new market for distributed photovoltaic development under the new situation. After the promulgation of the "Notice", some local grid companies simply understood that the state should control the development of photovoltaics. The grid-connected projects were not given any more. According to the policy, the subsidies for distributed photovoltaic power generation that were advanced were also stopped. correct.

The third is to promote the reduction of corporate burdens and create a good business environment for PV companies. Compared with foreign countries, the difference in photovoltaic power generation costs is mainly in non-technical costs. This year, the National Energy Administration issued the Notice on Reducing the Burden of Enterprises in the Field of Renewable Energy (Guo Neng Fa Xinneng [2018] No. 34), which will play an important role in reducing the non-technical costs of PV companies. Do a good job in the implementation of this document, so that the requirements of the measures are implemented, and truly let the photovoltaic enterprises move forward.

The fourth is to pay close attention to the implementation of the renewable energy power quota system. At present, the method has been completed for consultation and is being further revised and improved according to the request for comments, and it is expected to be introduced within the year. After the implementation of this system, it will further strengthen the responsibility of local governments and power sales companies, market participants in large power users, and self-sufficient power plants to absorb renewable energy, and promote the development of renewable energy including photovoltaic power generation. Play a very important role.

The fifth is to take measures to expand consumption and further reduce the blackout. We will conscientiously implement the measures clearly defined in the “Implementation Plan for Solving the Problem of Abandoning Water, Abandoning the Wind, and Abandoning the Light”, focusing on expanding the consumption of photovoltaic power generation, focusing on the problem of consumption in key areas and ensuring double reduction. Power grid enterprises must implement new energy priority scheduling requirements.

Key questions and answers

1. Has a “one size fits all” approach to scale management?

A : In order to alleviate subsidy pressure and reduce light and power cuts, the “Notice” has optimized the newly-built photovoltaic power generation scale and adopted a method of classified regulation: a reasonable control increment for the construction of ordinary power plants and distributed power plants that require state subsidies. According to the situation of the control of the leading base project, it will be arranged as appropriate; it will support the photovoltaic poverty alleviation and the need of state subsidy projects, and develop in an orderly manner. Therefore, this regulation is not a so-called "one size fits all". In addition to projects that require state subsidies, other projects are liberalized in the context of ensuring consumption and meeting quality and safety requirements.

Second , what is the consideration of the National Energy Administration in promoting the marketization of distributed PV?

A : Distributed power generation uses clean energy resources nearby. Energy production and consumption are completed nearby. It has the advantages of high energy efficiency and low pollution emissions, and represents a new direction and new form of energy development. In order to accelerate the development of distributed power generation including photovoltaics, in October 2017, the National Development and Reform Commission and the National Energy Administration jointly issued the Notice on Launching a Pilot Project for Distributed Power Generation Marketization (Development and Reform Energy [2017] 1901) No.), initiated the pilot work of distributed power generation market-oriented trading.

Three market trading patterns have been identified:

One is that the distributed power generation project conducts direct power transactions with nearby power users and pays “over-network fees” to the grid companies.

One is that the distributed power generation project unit entrusts the power grid enterprise to sell electricity, and the power grid enterprise converts the remaining sales revenue to the distributed after deducting the “over-network fee” (including network loss) based on the integrated electricity sales price. Power generation project unit.

One is that grid companies purchase electricity according to the benchmark on-grid tariffs of various types of power generation approved by the state, but the state's subsidies for power grid enterprises should deduct the transmission and distribution prices corresponding to the highest voltage level users in the distribution network.

At the same time, the notice puts forward requirements for the project scale of distributed power generation transactions, power trading organizations, and distributed power generation “over-network fees” standards.

After the notice was issued, the localities actively carried out the organization declaration work. Judging from the report, the enthusiasm of each place is very high. As of May 31, 2018, a total of 35 provinces and municipalities have reported 35 distributed PV pilot projects. In order to accelerate the implementation of the pilot program for distributed power generation market transactions, we will start the pilot project of distributed power generation marketization as soon as possible on the basis of completing the pilot review of distributed power generation transactions. The next step is to focus on the following tasks: Under the premise of ensuring the quality of pilot projects, the pilot projects for speeding up market-based power generation will speed up the launch of a number of eligible projects and regions to start pilots as soon as possible; second, encourage distributed photovoltaic power generation projects that do not require state subsidies and pilot projects using stocks. Distributed photovoltaic power generation projects. We will continue to deepen the pilot work of distributed power generation market-oriented trading, explore the technical models and business models of distributed PV participation in market-oriented transactions, and make distributed market-oriented transactions become new aspects and new areas of distributed photovoltaic development under the new situation. New market.

3. What measures will the National Energy Administration take to reduce the burden on photovoltaic power generation enterprises?

A : In recent years, with the continuous advancement of China's photovoltaic power generation technology, the construction cost of equipment manufacturing has dropped rapidly, which has significantly improved the market competitiveness of photovoltaic power generation. However, from the current situation, the problem of high non-technical cost and heavy burden on enterprises is increasing. The more prominent it is, the direct impact on the price level of photovoltaics and market competitiveness. In order to alleviate the investment and operation burden of renewable energy enterprises and promote the decline of renewable energy costs, in April this year, the Office issued the "Notice on Reducing the Burden of Enterprises in the Field of Renewable Energy" (Guoneng Xinneng [2018] No. 34) , clarified the implementation requirements of relevant policies and related support measures.

There are:

The first is to strictly implement the renewable energy power generation secure acquisition system. For projects that are in line with the national plan and included in the annual construction scale, the grid enterprises should complete the grid connection in a limited time, and implement the safeguard purchase policy according to the regional minimum guaranteed purchase hours approved by the state.

Second, the power grid enterprises are responsible for investing in the construction of the network connection project to ensure that the supporting power grid projects and projects are put into operation at the same time.

The third is to reduce land costs and unreasonable charges.

The fourth is to encourage financial institutions to integrate photovoltaics into the green financial system and reduce corporate financing costs.

The fifth is to stop the correction of arbitrary charges and increase the burden of enterprises. The locality shall not charge any kind of resource transfer fees, etc., and may not transfer the investment related to social welfare undertakings that should be undertaken by the local government to the renewable energy investment enterprises or share the expenses with them, and may not force the renewable energy enterprises to obtain the projects. At the same time of appointing qualifications, invest in other local industrial projects. It is not allowed to build a scale with any project that is not directly related to the project. It is not allowed to withdraw the proceeds from the project for other purposes. The sixth is to strengthen policy implementation and supervision. The implementation of relevant laws and regulations and the optimization of government services are included in the monitoring and evaluation scope of the investment warning mechanism for renewable energy projects, and the post-event supervision is strengthened.

In the future, we will implement the reduction of corporate burdens and the reduction of non-technical costs as an important basis for annual scale arrangements and base layout construction. For areas with low non-technical costs, priority will be given to scale and layout base construction. In the next step, we will focus on the implementation of various policies and measures as well as the supervision of the implementation of local and regional work. We will do our utmost to reduce the burden on PV companies, protect the legitimate interests of enterprises, and accelerate the realization of PV-level price online.

4. What is the progress of the construction of the leading base in the third phase? What are the specific considerations for the next step?

A : In September 2017, the bureau started the construction of the third phase of the pilot base, preferably 10 application lead bases and 3 technology lead bases. In May 2018, the top 10 enterprise application bases were fully completed, and they have now fully entered the implementation stage; the technology-led base is undergoing business competition optimization.

Judging from the competition results of each base, the third-phase leading base has achieved remarkable results.

First, it is a powerful push for technological progress and industrial upgrading. The average number of component technical indicators to be adopted by the base-selected enterprises reached 18.8%, which was 1.9 percentage points higher and 1.3 percentage points higher than the previous two periods. Among them, the conversion efficiency of single crystal and polycrystal reached 18.9% and 18.3%, respectively, which was 2.1 percentage points and 2.3 percentage points higher than the current market entry threshold.

Second, it will greatly promote the cost reduction and accelerate the subsidy. The on-grid electricity price generated by competition in each base project decreased by 0.19 to 0.31 yuan per kWh compared with the local benchmark electricity price, a drop of 28%-43.6%; the average decrease was 0.24 yuan, with an average decrease of 36.4%. Among them, the lowest electricity price is 0.31 yuan / kWh of Qinghai Golmud base, which is lower than the local coal-fired benchmark electricity price. According to this calculation, after the implementation of the 5 million kilowatts application leading base in the current period, the annual subsidy of 1.65 billion yuan can be saved. According to the 20-year subsidy period stipulated by the state, the total financial subsidy can be saved by 33 billion yuan. The price that is preferred to be found in the competition of the base enterprises provides an important reference for the competent pricing department to study and adjust and improve the benchmark electricity price to accelerate the declining and realize the photovoltaic level price as soon as possible.

The third is to promote local reduction of non-technical costs and improve the business environment. In the construction of the leading base, we used land cost and grid-connected consumption as the preconditions for the base competition. The local governments actively implemented and made corresponding commitments, which drove the decline of non-technical costs and significantly improved the business environment of photovoltaic power generation.

In the next step, we will strengthen supervision over local implementation and follow-up construction, strictly require local implementation of base construction requirements and commitments, and urge enterprises to speed up construction and on-time operation to ensure the progress of the project. Considering the obvious effect of the construction of the leading base, we will start the construction of the fourth phase leader base in due course in the second half of the year. In the future, the construction of the leading base will be the main position and important way for the construction of ordinary power stations.

5. What is the status of local support for distributed PV development?

A : Distributed PV is a key area for PV development in the future. In recent years, in accordance with the spirit of the Renewable Energy Law and the State Council's Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry, many provinces in the country have successively introduced policies and measures to support the development of the photovoltaic industry, especially in the country. On the basis of subsidies for photovoltaic power generation, many local governments have introduced subsidy policies to support the development of distributed photovoltaics.

According to incomplete statistics, as of now, 12 provinces in Zhejiang, Guangdong, Anhui, Jiangxi, Hubei, Hunan, Shanghai, Beijing, Jiangsu, Shanxi, Hainan and Fujian have introduced subsidy policies and are still implementing them. Zhejiang is the most prominent. In addition to provincial subsidies, there are 8 cities and 20 districts and counties that have introduced electricity price subsidies or initial investment subsidies. In addition, Guangzhou, Dongguan, Foshan, Chancheng District, Hefei, Huainan, Huaibei, Maanshan, Anhui, Nanchang, Shangrao, Yichang, Jiangxi, Huangshi, Hubei, Changsha, Hunan, Yancheng, Jiangsu Jincheng City in Shanxi, Sanya City in Hainan, Quanzhou City in Fujian Province and other places have introduced electricity price subsidies or initial investment subsidy policies. From the implementation situation, the effect is very good, which greatly promotes the development of local distributed PV. We encourage all regions to introduce local support policies for distributed PV development based on their actual local conditions and measures.

At the same time, on the basis of the work already carried out, we will fully listen to and absorb the opinions of all parties, continue to improve the "Opinions on Improving the Scale Management of Photovoltaic", "Management Measures for Distributed Photovoltaic Power Generation Projects", and do a good job in photovoltaic development, especially distributed photovoltaics. Development policy and service guarantee work.

6. Green card is an important way to solve the gap in renewable energy subsidies. Please tell us what is the current situation?

A : In order to guide the whole society to pay attention to the development and utilization of renewable energy, advocate green energy consumption, further improve the subsidy mechanism of wind power and photovoltaic power generation, and reduce the intensity of direct financial subsidies of the state. Based on the experience of international experience, starting from July 1, 2017 China has officially implemented the voluntary subscription system for renewable energy green power certificates. Governments, enterprises, social institutions and individuals can voluntarily purchase China Green Power Certificates at the price equivalent to the intensity of subsidies for wind power and photovoltaic power generation as proof of consumption of green power.

As of June 10, 2018, 27,250 green certificates have been sold, of which 27,101 are wind power green certificates, and the average transaction price is 184.2 yuan/piece (equivalent to 0.1842 yuan/kWh); With more wind power and other factors, the trading volume of PV green certificates is only 149, and the average transaction price is 668.3 yuan / piece (equivalent to 0.6683 yuan / kWh).

In the future, with the rapid reduction of photovoltaic construction costs, electricity prices will gradually decline, and the price of photovoltaic green certificates will gradually decline. In the next step, we will continue to expand publicity and encourage domestic and foreign enterprises, institutions and individuals to support the development of photovoltaic enterprises by purchasing green certificates, alleviating the pressure of state subsidies, creating a good atmosphere for the consumption of photovoltaic power in the whole society, and jointly fulfilling the social responsibility of green development.

7. At the end of last year, the state has introduced a new on-grid tariff policy for photovoltaic power generation. After five months, it has lowered the benchmark price of ordinary photovoltaic power plants and the subsidy standard for distributed photovoltaic power generation. How is this considered?

A : In recent years, China's photovoltaic industry has achieved remarkable achievements, innovation capability and competitiveness have been continuously improved. Benchmark electricity prices and tax support policies have played a positive role. Photovoltaic power generation is currently an industry that requires financial subsidies. The implementation of the photovoltaic power generation price decline and the reduction of subsidy standards as soon as possible is a clear policy of the national solar energy development “13th Five-Year Plan”, and the market has long been expected.

In order to reasonably reflect the cost reduction of photovoltaic power generation, the Commission has continuously adjusted the on-grid price of photovoltaic power generation benchmarks, reduced the subsidy burden of the whole society, and promoted the healthy development track of fair competition, independent operation and virtuous circle. The Notice on Matters Related to Photovoltaic Power Generation in 2018 (Development and Reform Energy [2018] No. 823, hereinafter referred to as the Notice) further reduces the target price and subsidy standard for photovoltaic power generation projects included in the new construction scale. The benchmark electricity price of ordinary photovoltaic power plants is reduced by 5 points, and the first-to-three types of resource areas are 0.5 yuan, 0.6 yuan, and 0.7 yuan per kWh respectively; the distributed photovoltaic power generation subsidy standard of "spontaneous use and surplus online" mode is also reduced. 5 points, specifically 0.32 yuan per kWh; the benchmark electricity price of village-level photovoltaic poverty alleviation power stations in line with national policies remains unchanged.

At the same time, it is clear that the decisive role of market allocation resources will be brought into play, and the price level of photovoltaic emission levels will be accelerated. All ordinary photovoltaic power plants must determine the on-grid tariff through competitive bidding. The benchmark electricity price set by the state is only used as the upper limit price for bidding.

The main considerations for reducing electricity prices are as follows: First, the price of components has dropped rapidly. Since the beginning of this year, the price of components has slowed down. The average price of conventional components has dropped from 3 yuan per watt at the end of last year to 2.5 yuan in May. A few companies have already quoted 2 yuan. The average price of PV modules has fallen by about 17% compared to the end of last year. The second is to link up with the bidding ceiling price of the PV leader base. Since the beginning of this year, the price of the 10 application leader bases organized by the National Energy Administration has been generally lower than the benchmark electricity price of PV power plants in the same resource area. The average price per kWh dropped by 0.24 yuan, a decrease of about 36%.

The enterprise bidding for the photovoltaic leader base needs to be quoted on the basis of a 10% reduction in the PV benchmark price in 2018, which is equivalent to a drop of 5.5-7.5 points as the bidding ceiling price. Due to the advanced technology of the front runner base and the standard boundary conditions of the project construction, the land tax and the light rejection rate are strictly regulated. The ordinary power station is strictly enforced according to the bidding limit price of the front runner base. Therefore, this time it is reduced by 5 points. Third, the subsidy gap has grown too fast. Up to now, the gap in renewable energy subsidies has accumulated about 120 billion yuan, and it is still expanding year by year. Since last year, distributed photovoltaic power generation has shown a rapid development trend. The newly installed capacity in the first four months of this year was nearly 9 million kilowatts, an increase of about 1.8 times. According to the calculation of 10 million kilowatts of distributed photovoltaics, the annual subsidy is about 4 billion yuan, and the subsidy is 20 years. The total subsidy is 80 billion yuan. The development of distributed PV is too fast, and there are also many risks. It is necessary to exert appropriate regulation through price leverage. Therefore, the subsidy standard for distributed photovoltaic power generation is also reduced by 5 points.

In addition, the PV project construction period is short. The construction period of ordinary photovoltaic power plants is generally 4-5 months, and the construction period of distributed photovoltaics is shorter. From a practical point of view, adjusting the price once a year fails to reflect the actual development of the industry in a timely manner. It is understood that when Germany implements fixed subsidy management, it first adjusts the price once a year. Later, the component cost drops rapidly, and it is changed to a quarterly adjustment, and then changed to two months. It should be emphasized that there is no document stipulating that the PV price will be adjusted once a year.

In August 2013, our committee formulated a tariff policy for photovoltaic power generation in sub-resource areas, and a new benchmark electricity price policy will be formulated by the end of 2015. After that, the benchmark electricity price was adjusted at the end of 2016 and the end of 2017. The previous price adjustments were based on technological advances and cost reductions, and there was no fixed price adjustment cycle. If the "buffer period" is left, it will bring "catch-up" problems, which will have a negative impact on the development of the industry.

After the "Notice" was released, most PV companies expressed their understanding and support for lowering benchmark electricity prices and subsidy standards. Many PV manufacturing companies said that the cost of photovoltaic power generation systems is declining, and the benchmark price is lowered, which is acceptable to the industry.

8. Is there any change in the expression of “630 Policy” in the “Notice on the Price Policy for Photovoltaic Power Generation Projects in 2018”?

A : At the end of 2017, the Commission issued the “Notice on the Price Policy for Photovoltaic Power Generation Projects in 2018” (Development and Reform Price [2017] No. 2196), and clarified that the “630 Policy” will continue to be implemented in 2018. This "Notice" stipulates the decline in the benchmark electricity price of ordinary photovoltaic power plants in 2018. It does not involve the "630 policy". The previous "630 policy" has not changed. That is, the projects that have been included in the scope of construction scale subsidies in 2017 and before will be put into operation by the grid before June 30 this year, and continue to implement the 2017 benchmark electricity price.

In addition, the on-grid tariff policy of the technology-led base construction project organized by the National Energy Administration for tendering has remained unchanged. Some companies are worried that they cannot implement the "630 Policy" and it is not necessary.

After the publication of the "Notice", we quickly released clear information to the society through industry organizations such as the Photovoltaic Industry Association and the Photovoltaic Special Committee. Relevant media such as China Securities Network have already carried out extensive publicity reports; we also actively contacted local price authorities. And the grid company, informed that it wants to accurately explain the information that this year's "630 policy" continues to be implemented, most PV companies have already understood the policy intention.

Steel poles are commonly used to carry several types of electric power lines, distribution lines and lighting system.  Distribution lines carry power from local substations to customers. They generally carry voltages from 4.6 to 33kV for distances up to 30 miles, and include transformers to step the voltage down from the primary voltage to the lower secondary voltage used by the customer. A service drop carries this lower voltage to the customer's premises.