In the past two years, under the double blows of the “double counter†investigations in Europe and the United States and the sharp drop in product prices, China’s PV companies have been caught in difficulties and many companies are on the brink of bankruptcy. In the second half of this year, a number of policies that favored the photovoltaic industry were introduced one after another, and photovoltaic companies finally welcomed the turnaround. On July 4, the State Council issued the “Several Opinions of the State Council on Accelerating the Healthy Development of the Photovoltaic Industry.†It is planned that by 2015, the total installed capacity of photovoltaic power generation will reach 35 million kilowatts or more. From 2013 to 2015, the annual average installed capacity of photovoltaic power generation will increase by 10 million. Kilowatts or so. Photovoltaic power generation industry has great potential for development. For a time, many companies have begun to hurry up. Yingli: Plan to enter the top two domestic downstream power generation two years after planning At present, China's photovoltaic power plants are mainly divided into two categories, large-scale ground power plants and distributed photovoltaic power plants. Large-scale terrestrial power stations, also called centralized photovoltaic power stations, are mainly built in the desert areas of the Gobi Desert in the western part of the country. They make full use of their land resources and solar energy resources to output electricity through the grid. Distributed photovoltaic power plants are attached to the surface of buildings (such as walls The small-scale photovoltaic power stations constructed on the roofs, etc., are generally self-contained, and the inexhaustible amount of electricity can also be transmitted through the grid. On August 30th, the National Development and Reform Commission issued the Notice on Exploiting Price Leverage to Promote the Healthy Development of the Photovoltaic Industry, and implemented a subregional on-grid tariff policy for large ground power stations. According to different lighting conditions, the country’s three types of resource areas are implemented at each degree. RMB 0.95, CNY 0.95, and CNY 1 for on-grid tariffs; 0.42 yuan per unit for distributed photovoltaic power generation projects. Yingli Group is the world's largest supplier of photovoltaic modules in 2012. At present, Yingli is based on the production of photovoltaic modules and manufacturing, and is actively expanding to the downstream to vigorously develop the photovoltaic power generation industry. On August 5, Yingli Group held an affidavit meeting to announce new measures for entering the photovoltaic power generation market. It plans to enter the top two domestic downstream power generation two years later. Zhao Zhiheng, vice president of Yingli Group, stated that in the entire value chain of the photovoltaic industry, the added value of the upstream photovoltaic module manufacturing industry is relatively low, and that of the downstream photovoltaic power generation industry is relatively high. Entering the downstream industry, Yingli can, on the one hand, consume its own production capacity and increase its industrial added value; on the other hand, it follows the national policy guidance and can obtain more credit support. The goal set by Yingli Group is to complete 15 million kilowatts to 17 million kilowatts of installed capacity by 2017. By then, the land resources required for the layout of ground power stations will exceed 150,000 mu, and the total investment will also exceed 100 billion yuan. From April 6th, 2013, Ms. Miao Liansheng, chairman of Yingli Group, led the Yingli team to visit Yunnan and Guangxi for inspection and site selection. Country: Pushing Distributed PV Power Plants Jiang Hua, an engineer at the Electronic Information Industry Research Institute at CCID think tank, told China Economic Weekly that, compared to large-scale ground power stations, the country hopes to promote distributed photovoltaic power stations. Jiang Hua analysis pointed out that, first of all, the main feature of distributed generation is local consumption, which can reduce the loss of long-distance transmission. Large-scale ground power stations are mainly distributed in the western region, and industries are relatively backward. The amount of electricity generated cannot be consumed on the spot and can only be transported over long distances. It is necessary to increase investment in power transmission and transformation. Second, distributed generation is subsidized on the basis of retail electricity prices. For the country, it can maximize the efficiency of the use of subsidy funds. Finally, with the deepening of the reform of the power system, the main body of the power market is more diversified, and distributed generation provides a free choice for the diversified power market players. In order to encourage the construction of distributed photovoltaic power generation, on August 9th, the National Energy Administration issued the “Circular on the Establishment of a Demonstration Area for Distributed Photovoltaic Power Generation Application†to announce the list of the first batch of distributed photovoltaic power generation demonstration areas. The batch list involves 7 provinces and 5 cities and a total of 18 demonstration area projects spanning 2013-2015, with a total installed capacity of 1,823 MW (1 MW equals 1,000 kW). Yingli Group spotted distributed photovoltaic power generation as the main development direction in the country. In March 2013, a distributed power investment management company was established to launch the construction of distributed photovoltaic power plants. In the list of the first batch of distributed photovoltaic power generation demonstration zones announced by the National Energy Administration, Yingli Group's Yingli New Technology Development Zone in Baoding, Hebei, is on the list. Suzhou GCL-Poly Solar Power Investment Co., Ltd. is a business segment of GCL-Poly Energy (03800.HK) which is engaged in the development, investment, construction and operation of large and medium-sized photovoltaic power plants. It is also actively applying for distributed photovoltaic demonstration zone projects. Gu Huamin, vice president of Suzhou GCL-Poly Solar Power Investment Co., Ltd., told China Economic Weekly that “the first batch of distributed photovoltaic demonstration zones had only 18 items in the list and we did not apply. At present, we are applying for high-tech in Suzhou and Nanjing. District projects will strive to enter the second batch of demonstration areas." Enterprise: More favored for large ground power stations Although the country wants to promote distributed photovoltaic power plants, for enterprises, they look at major ground power stations. According to the plan of Yingli Group, by 2017, the installed capacity of 15 million kilowatts to 17 million kilowatts of photovoltaic power stations will be completed, of which 13 million kilowatts to 15 million kilowatts are large-scale ground power stations, and only 2 million kilowatts are distributed photovoltaic power stations, distributed photovoltaic power stations. The scale accounted for less than 15%. Wang Zhixin, Deputy Director of Propaganda Department of Yingli Group, told China Economic Weekly that the scale of large-scale terrestrial power stations is relatively large, investment income is stable, and the efficiency of integrated operations is high, which is more likely to be favored by enterprises. GCL-Poly also has a similar situation. Gu Huamin admitted that while GCL-Poly is also actively deploying distributed power station construction, it still pays more attention to the construction of large-scale ground power stations. The scale of the company's large-scale ground power stations is about 10 times that of distributed photovoltaic power plants. The construction of a distributed photovoltaic demonstration zone is very difficult. First, it is necessary to find a suitable roof resource. After that, it is necessary to negotiate with the electricity company and apply for approval of the materials submitted by the Energy Bureau. This process is complicated. In addition to the difficulty of implementing the project, there are also large uncertainties in distributed PV power plants in terms of economic benefits. For example, in Jiangsu, the electricity price of industrial enterprises is about 0.8 yuan to 1 yuan per degree, plus a subsidy of 0.42 yuan per degree, the benefits of distributed photovoltaic power plants can reach more than 1.2 yuan per degree, which is 0.9 times the on-grid tariff of large-scale ground power plants. ~1 yuan is much higher. However, if the power companies cannot continue to produce stably and do not use so much electricity, the distributed photovoltaic power plants can only use the power grid to generate electricity, which is only about 0.8 yuan per kilowatt-hour. The efficiency is far lower than that of large-scale ground power stations. Jiang Hua said: “This time, the subsidy programs announced by the National Development and Reform Commission are all subsidies for electricity consumption, which solves all kinds of drawbacks of the initial installation subsidies. The initial installation subsidies are high investment, high subsidies, low investment and low subsidies, and cannot encourage technological progress. And the initial installation subsidy of the Golden Sun demonstration project has caused a lot of problems in the early stage of operation, such as fraudulent supplementation. From the perspective of foreign experience, the degree of subsidy for electric power is more obvious for the promotion of the industry." However, Jiang Hua also said that the policy can play a big role, but also depends on the implementation of the later period, such as the photovoltaic grid and power delivery is in place. Prior to this, some large-scale ground power stations in the west had been unable to connect to the grid and the project was abandoned. Just like people, basins also need to display its individuality into the public eye, so color Basin was born because of demand. 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