In 2021, June 11, the National Development and Reform Commission issued a notice on 2021 new energy on-grid pricing policy related matters, compared with industry expectations, the policy is concise and comprehensive, support for photovoltaic and other new energy oriented more obvious. Sure enough, the less words there are, the more things there are. Just four policies have three important benefits:

 

A heavy positive, clear in 2021 the new record of centralized and industrial and commercial distributed photovoltaic projects to implement the local coal-fired power generation benchmark price. Previously, it is widely expected that new energy projects in 2021 will continue to form feed-in tariffs through competitive means under the condition of affordable Internet access. The circular makes it clear that the benchmark price of coal-fired power generation will be directly applied to new energy projects, which reflects the state's great importance in supporting the accelerated development of new energy.

 

Second, it emphasizes that new projects can voluntarily participate in market transactions to form the grid price.Moreover, the on-grid price is to better reflect the value of green electricity, which means that the market transaction price of photovoltaic and other new energy may be higher than the benchmark price of coal, which is significantly different from the industry expectation that the market transaction will lower the price of electricity.

 

Third, pricing power will be delegated to provincial pricing authorities for offshore wind and solar-thermal power projects that still have high costs but have room for development in the future. Places with better conditions (such as Guangdong, Jiangsu, Fujian and other provinces with better offshore wind power resources) can introduce local support policies to promote the development of related industries without increasing state subsidies.

 

In addition, the National Energy Administration in the "Notice on 2021 Wind power, photovoltaic power Development and Construction of relevant matters" has determined the 2021 household photovoltaic subsidy quota of 500 million yuan, the subsidy standard is expected to be about 3 cents per KWH, household photovoltaic will still maintain rapid growth.

 

Overall, this price policy has fully considered the demands and opinions of the industry, and even exceeded expectations. It fully reflects the determination of the National Development and Reform Commission to implement the decisions and deployment of the CPC Central Committee and actively promote the high-quality development of photovoltaic and other new energy. The introduction of the policy once again shows that after General Secretary Xi Jinping put forward the goal of "carbon peak by 2030, carbon neutral by 2060", the policy environment of photovoltaic, wind power and other new energy development will continue to improve.This price policy is indeed another demonstration.

 

Notice of the National Development and Reform Commission on the new Energy Feed-in tariff policy in 2021

 

The price (2021) is No. 833

 

Development and Reform Commissions of all provinces, autonomous regions and municipalities directly under the Central Government, State Grid Co., LTD., China Southern Power Grid Co., LTD., Inner Mongolia Electric Power (Group) Co., LTD.

 

For the implementation of the CPC Central Committee and the State Council decision deployment, fully give play to the role of electricity price signal, guide rational investment, promote efficient utilization of resources, to promote high quality photovoltaic power generation, wind power and other new energy industry development, the National Energy Administration in business, now 2021, photovoltaic power generation, wind power and other new energy feed-in tariff policy matters related to notice the following:

 

1. Starting from 2021, for newly registered centralized photovoltaic power stations, 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 provide subsidies and implement affordable Internet access.

 

Ii. The on-grid price of new projects in 2021 shall be based on the local benchmark price of coal-fired power generation;New projects can voluntarily participate in market transactions to form the feed-in price, so as to better reflect the green power value of photovoltaic and wind power generation.

 

Iii. Starting from 2021, the on-grid price for new approved (archival) offshore wind power projects and solar-thermal power generation projects will be set by local provincial price authorities, and can be set through competitive allocation if conditions permit. If the on-grid price is higher than the local benchmark price for coal-fired power generation, the part within the benchmark price will be settled by power grid enterprises.

 

4. Encourage local governments 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 take effect on August 1, 2021.

 

National Development and Reform Commission

 

June 7, 2021

 

2021/06/11 price department