Photovoltaic extreme challenge in three prefectures and one city in Sichuan Province: bidding below coal price

category:Finance
 Photovoltaic extreme challenge in three prefectures and one city in Sichuan Province: bidding below coal price


Sichuan is a big hydropower province. In May 2017, after Yunnan, another large hydropower Province, Sichuan proposed to use hydropower instead of desulfurization coal-fired electricity price to settle wind and solar power, which caused industrial disputes.

According to the notice of Sichuan Province on promoting the marketization of wind power and photovoltaic power generation in the rainy season of 2018, except for distributed wind power, distributed photovoltaic and photovoltaic poverty alleviation projects, the State Grid Sichuan electric power company will take the priority of purchasing on behalf of residential users through the Sichuan power trading platform every month. For the wind power and photovoltaic power generation enterprises participating in the priority procurement, the total on grid electricity quantity shall be settled according to 0.21 yuan / kWh (the weighted average on grid price level of medium and long-term external power transmission in the high water period in 2018). 21 yuan / kWh, which means that the electricity price of many projects is cut down directly compared with the original approved price, and the return on investment of the project is under pressure sharply. There is no lack of controversy about the above-mentioned scheme of three prefectures and one city in Sichuan Province to participate in the transaction during the wet season. Some people in the industry believe that there should be a gradual transition from low price to low price. The mandatory low electricity price and electricity market transaction make it difficult for the project to guarantee the normal rate of return, and winning the bid at the lowest price may also lead to vicious competition at low price, which is not conducive to the healthy development of the industry. Source: surging news editor: Wang Xiaowu_ NF

According to the notice of Sichuan Province on promoting the marketization of wind power and photovoltaic power generation in the rainy season of 2018, except for distributed wind power, distributed photovoltaic and photovoltaic poverty alleviation projects, the State Grid Sichuan electric power company will take the priority of purchasing on behalf of residential users through the Sichuan power trading platform every month. For the wind power and photovoltaic power generation enterprises participating in the priority procurement, the total on grid electricity quantity shall be settled according to 0.21 yuan / kWh (the weighted average on grid price level of medium and long-term external power transmission in the high water period in 2018).

21 yuan / kWh, which means that the electricity price of many projects is cut down directly compared with the original approved price, and the return on investment of the project is under pressure sharply.

There is no lack of controversy about the above-mentioned scheme of three prefectures and one city in Sichuan Province to participate in the transaction during the wet season.

Some people in the industry believe that there should be a gradual transition from low price to low price. The mandatory low electricity price and electricity market transaction make it difficult for the project to guarantee the normal rate of return, and winning the bid at the lowest price may also lead to vicious competition at low price, which is not conducive to the healthy development of the industry.