“The new policy will cause photovoltaic investment to flood the western region, putting pressure on the grid.†said Lin Boqiang, director of the Energy Economics Research Center at Xiamen University.
Lin Boqiang believes that due to the abundant solar energy resources in the western region and high investment returns, while the region’s energy needs are relatively small, a large amount of photovoltaic power generation needs to be transported over long distances. Once the installed capacity of photovoltaic power increases rapidly, the cost of the power grid will increase accordingly. If the cost allocation problem of the power grid is not solved, it will result in the situation that only the installed power will not be powered.
Some analysts pointed out that the "Notice" clearly defined the unified photovoltaic benchmark on-grid tariff, but similar to other energy sources such as wind energy and hydropower, solar energy resources also have the characteristics of uneven regional distribution. Although China is a country with rich solar energy resources, the western region has the most abundant solar energy resources, while the eastern region has relatively less abundant solar energy resources.
Lin Boqiang believes that, on the one hand, the confirmation of unified national benchmark electricity prices makes local regulations available, but the cost of photovoltaic power generation in different regions is different. In the eastern region where solar energy resources are limited, the unified benchmark electricity prices do not cover the cost of electricity generation. For example, photovoltaics should be developed. The power generation industry requires local governments to provide subsidies. Lin Boqiang said that what the industry hopes in the past was regional electricity prices, rather than national unified pricing, and the benchmark electricity price in Jiangsu and Zhejiang regions should be around 1.5 yuan.
In fact, when China introduced wind power benchmark on-grid tariffs in 2009, it divided the country into four types of wind energy resource areas and determined different benchmark on-grid tariffs. Some analysts predict that on the basis of the current single benchmark on-grid price, local governments need to further refine the content of benchmarking on-grid tariffs to encourage investment in different types and sizes of photovoltaic power plant projects.
Lin Boqiang believes that due to the abundant solar energy resources in the western region and high investment returns, while the region’s energy needs are relatively small, a large amount of photovoltaic power generation needs to be transported over long distances. Once the installed capacity of photovoltaic power increases rapidly, the cost of the power grid will increase accordingly. If the cost allocation problem of the power grid is not solved, it will result in the situation that only the installed power will not be powered.
Some analysts pointed out that the "Notice" clearly defined the unified photovoltaic benchmark on-grid tariff, but similar to other energy sources such as wind energy and hydropower, solar energy resources also have the characteristics of uneven regional distribution. Although China is a country with rich solar energy resources, the western region has the most abundant solar energy resources, while the eastern region has relatively less abundant solar energy resources.
Lin Boqiang believes that, on the one hand, the confirmation of unified national benchmark electricity prices makes local regulations available, but the cost of photovoltaic power generation in different regions is different. In the eastern region where solar energy resources are limited, the unified benchmark electricity prices do not cover the cost of electricity generation. For example, photovoltaics should be developed. The power generation industry requires local governments to provide subsidies. Lin Boqiang said that what the industry hopes in the past was regional electricity prices, rather than national unified pricing, and the benchmark electricity price in Jiangsu and Zhejiang regions should be around 1.5 yuan.
In fact, when China introduced wind power benchmark on-grid tariffs in 2009, it divided the country into four types of wind energy resource areas and determined different benchmark on-grid tariffs. Some analysts predict that on the basis of the current single benchmark on-grid price, local governments need to further refine the content of benchmarking on-grid tariffs to encourage investment in different types and sizes of photovoltaic power plant projects.
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