National Development and Reform Commission: PV no longer subsidies to implement parity grid

On the 7th, the National Development and Reform Commission issued the "Notice on Issues Related to the 2021 New Energy Feed-in Tariff Policy", which clarified the 2021 wind power, photovoltaic power and other new energy feed-in tariff policies.
This notice will be implemented on August 1, 2021
.

According to the document, starting from 2021, for newly filed centralized photovoltaic power plants, industrial and commercial distributed photovoltaic projects, and newly approved onshore wind power projects (hereinafter referred to as "new projects"), the central government will no longer subsidize and implement parity on the grid
.

Newly built projects can voluntarily participate in market-oriented transactions to form feed-in tariffs to better reflect the green power value of photovoltaic power generation and wind power

The "Notice" clarified that the on-grid power prices for newly approved (recorded) offshore wind power projects and solar thermal power generation projects are set by the local provincial price authorities, and qualified ones can be formed through competitive allocation, and the on-grid power prices are higher than the local benchmark price for coal-fired power generation.
Yes, the part within the benchmark price will be settled by the grid company
.

The "Notice" also pointed out that localities are encouraged to introduce targeted support policies to support the sustainable and healthy development of new energy industries such as photovoltaic power generation, onshore wind power, offshore wind power, and solar thermal power generation
.

In addition, relevant responsible comrades of the National Development and Reform Commission answered reporters' questions on related issues
.

Q: What is the important role of the state's 2021 feed-in tariff policy for accelerating the development of wind power and photovoltaic power generation industries?

Price is a sensitive signal to guide resource allocation
.

In recent years, in accordance with the decisions and arrangements of the Party Central Committee and the State Council, the National Development and Reform Commission has gradually established and improved the on-grid tariff policy, which has played an important role in promoting the sustainable and healthy development of the wind power and photovoltaic power generation industries

With the advancement of industrial technology and the improvement of efficiency, the cost of new photovoltaic power generation and wind power projects has been declining in recent years.
At present, the conditions for parity grid-connected power have been met, and the industry has also formed a high degree of consensus on parity-level gridding
.

In this context, the National Development and Reform Commission promulgated the new energy feed-in tariff policy for 2021, clarifying that from 2021, the newly filed centralized photovoltaic power plants, industrial and commercial distributed photovoltaic projects, and newly approved onshore wind power projects (hereinafter referred to as "new projects") The central government will no longer subsidize and implement parity on the grid.

Q: According to the feed-in tariff policy in 2021, can new wind power and photovoltaic power generation projects achieve better returns?

When researching and formulating the on-grid tariff policy in 2021, an important aspect we consider is to ensure that new wind power and photovoltaic power generation projects can achieve better returns, so as to give full play to the role of electricity price signals, rationally guide investment, promote efficient use of resources, and promote industrial growth.
Quality development
.

According to estimates, with the implementation of the benchmark price of coal-fired power generation in various places, the national average yield of new photovoltaic and onshore wind power projects in 2021 will be at a relatively good level, and the new projects in provinces with good resource conditions will lead in technology and efficiency.
Newly built projects can achieve better returns
.

At the same time, considering that some electricity-consuming companies hope to directly carry out market transactions with new energy power generation companies to purchase green power and pay higher prices, the "Notice" clarifies that new projects can voluntarily participate in market-oriented transactions to form feed-in tariffs to better reflect photovoltaic power generation , The green power value of wind power
.

Q: There is still a lot of room for development in household distributed photovoltaic projects
.

In 2021, what are the supporting policies for household distributed photovoltaic projects?

Recently, the National Energy Administration issued the "Notice on Matters Concerning the Development and Construction of Wind Power and Photovoltaic Power Generation in 2021" (Guoneng Fa Xinneng [2021] No.
25), which has clarified the national financial subsidy budget for new household distributed photovoltaic projects in 2021.
For 500 million yuan
.

In the next step, specific implementation policies will be further refined to ensure that the grid-connected scale of newly built household distributed photovoltaic projects reaches 15 million kilowatts or more throughout the year

Q: The Ministry of Finance has issued a document clarifying that the central government will no longer provide subsidies for new offshore wind power and solar thermal power generation projects from 2021
.

What will happen to the on-grid tariff policy for offshore wind power and CSP in 2021?

The "Notice" clarified that the on-grid tariff for newly approved offshore wind power projects and newly filed CSP projects from 2021 will be set by the local provincial-level pricing authority, and qualified ones can be formed through competitive allocation
.

This arrangement is conducive to the rational formulation of on-grid tariff policies for new offshore wind power and solar thermal power generation projects based on local resource conditions, development plans, and support policies

The original policy is as follows:

The original policy is as follows:

Notice of the National Development and Reform Commission on matters concerning the new energy feed-in tariff policy in 2021

Notice of the National Development and Reform Commission on matters concerning the new energy feed-in tariff policy in 2021

Development and Reform Price (2021) No.

Development and Reform Price (2021) No.

In order to implement the decisions and deployments of the Party Central Committee and the State Council, give full play to the role of electricity price signals, rationally guide investment, promote efficient use of resources, and promote the high-quality development of new energy industries such as photovoltaic power generation and wind power, the National Energy Administration will now conduct photovoltaic power generation in 2021.

1.

2.
In 2021, the on-grid electricity price of new projects will be implemented according to the local benchmark price of coal-fired power generation; newly-built projects can voluntarily participate in market-oriented transactions to form on-grid electricity prices to better reflect the green power value of photovoltaic power generation and wind power
.

3.
Starting from 2021, on-grid power prices for newly approved (recorded) offshore wind power projects and solar thermal power generation projects will be set by the local provincial-level price authorities, and qualified ones can be formed through competitive allocation, and the on-grid power prices will be higher than the local coal-fired power generation benchmarks.
For the price, the part within the benchmark price shall be settled by the grid company
.

4.
Encourage localities to introduce targeted support policies to support the sustainable and healthy development of new energy industries such as photovoltaic power generation, onshore wind power, offshore wind power, and solar thermal power generation
.

This notice will be implemented from August 1, 2021
.

National Development and Reform Commission

June 7, 2021