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Welcome again! Wind power, photovoltaic power generation and other industries have received financial support as a "gift package"!

Data:2021-03-15

Wind power, photovoltaic and other industries welcome favorable policies again
 
A reporter from China Securities News learned from the National Development and Reform Commission on the 12th that the five departments have recently jointly issued a notice to guide increased financial support and promote the healthy and orderly development of wind power and photovoltaic power generation industries. The notice clearly states that financial institutions can negotiate extension or renewal of loans with renewable energy companies in accordance with the principles of commercialization, and independently issue subsidized loans for confirmation of rights in accordance with the principles of marketization and rule of law. This is undoubtedly an opportunity for solar mounting system manufacturers such as CHIKO Solar.
 Welcome again! Wind power, photovoltaic power generation and other industries have received financial support as a "gift package"!
On the day of the A-share market, power, environmental protection, carbon neutral and other related sectors performed well, with many stocks trading at their daily limits. Experts said that the series of measures proposed by the five departments this time are designed to help renewable energy companies resolve production and financial security risks, and propose beneficial measures to solve the problem of renewable energy subsidies, which are conducive to the healthy and orderly development of the industry.
 
Take multiple measures to bail out companies
 
Affected by many factors, some renewable energy companies have had tight cash flow in recent years and encountered difficulties in production and operation. In order to alleviate the difficulties of renewable energy companies, the above-mentioned notice focuses on guiding the increase of financial support, and clarifies measures such as negotiating loan extension or renewal, and issuing subsidized loans to confirm rights.
 
According to the notice, for renewable energy companies with high short-term repayment pressure but promising future development, financial institutions can extend loans based on the actual and expected cash flow of the project in accordance with the risk-controllable principle and on the basis of independent negotiation between the bank and the enterprise. , Renew the loan or adjust the repayment schedule, time limit and other arrangements.
 
The notice pointed out that the enterprises where the renewable energy projects have been included in the subsidy list can apply for subsidy confirmation loans for the financial subsidy funds that have been confirmed and receivable. Financial institutions independently issue subsidized loans for confirmation of rights in accordance with the principles of marketization and rule of law. The interest on the subsidized loan is borne by the renewable energy company that borrows the loan. Relevant national departments will study the way of issuing green power certificates to appropriately make up for the interest costs shared by enterprises.
 
In order to ensure the source of renewable energy subsidies, the notice requires the levy of renewable energy tariffs in full. The notice also clarified that the enterprise voluntarily chooses whether to convert to a parity project based on actual conditions. For those who voluntarily convert to a parity project, the loan limit and loan interest rate can be determined through independent negotiation.
 
The notice pointed out that places with good basic conditions and high enthusiasm, as well as companies with particularly urgent funding needs, can start pilot projects, actively implement national policies, and explore effective ways to solve the problem of renewable energy subsidies based on the overall work plan determined by the country.
 
The notice pointed out that due to the growing demand for clean and sustainable energy and the increasing degree of urbanization, the solar mounting system market is expected to gain tremendous growth momentum.
 
The solar mounting bracket system is used to install photovoltaic modules on the ground, exterior walls, buildings, roofs and other building structures. The materials used in these systems usually depend on the climate. For example, when setting up factories in coastal areas, all structural components should be made of galvanized steel or aluminum because of its high corrosion resistance.
 
As early as the beginning of 2020, CHIKO Solar has developed and used a new type of material-magnesium-aluminum-zinc-plated solar mounting system for power station systems. This kind of material is more economical and cost-effective, lighter in weight, and better in terms of wind resistance performance compared to the expected galvanized steel and aluminum alloy.
 
Relieve corporate funding pressure
 
Yi Yuechun, vice president of the General Institute of Hydropower and Water Conservancy Planning and Design, told a reporter from China Securities News that in the first year of the "14th Five-Year Plan", relevant departments coordinated energy, finance, finance and other fields and jointly proposed a number of financial support measures aimed at Solving the current pain points and difficulties facing the development of the industry will inject vitality into the development of new energy industries such as wind power and photovoltaics, and provide an important guarantee for promoting the green and low-carbon transition of my country's energy and achieving the goal of carbon peak and carbon neutrality.
 
"From the perspective of policy measures, the notice reflects the idea of ​​not only focusing on marketization, but also focusing on risk control. At the same time, giving play to the environmental value attributes of green certificates and encouraging companies to reduce the pressure on interest sharing through green certificate transactions is conducive to solving the worries of the company. Promote the implementation of the subsidy confirmation loan policy." Yi Yuechun said.
 
Regarding the green certificate issuance and transaction plan, Yi Yuechun suggested that the relevant management regulations of the country's green certificate transaction and the interest sharing needs of the enterprise should be considered and determined.
According to Qin Haiyan, executive director of the Chinese Renewable Energy Society, executive deputy director and secretary-general of the Wind Energy Special Committee, as of the end of 2020, the unreceived financial subsidy funds receivable by renewable energy companies will be around 300 billion yuan. Among them, wind power is about 155 billion yuan, photovoltaics is about 125 billion yuan, and the remainder is subsidies for projects such as biomass and independent systems.
 
It is understood that the large gap in renewable energy subsidies and the long distribution period have plagued the wind power and photovoltaic industries for many years. The relevant person of GCL New Energy told the reporter of China Securities Journal that the relevant state departments issued a document to support financial institutions to issue relevant loans to enterprises such as wind power and photovoltaic power generation, which largely solved the problems of corporate financing difficulties and high financing costs.
 
GCL Integration Board Secretary Ma Junjian said in an interview with reporters that the settlement of the subsidy arrears issue can effectively stabilize market expectations, further ease the financial pressure on photovoltaic manufacturing and development companies, and accelerate project development. The company's related business development is expected to benefit.
 
Some institutional sources said that the policy is a guiding financial support policy, and some details still need to be further clarified.
 
Policy warm air blows frequently
 
Under the guidance of the carbon peak and carbon neutral goals and tasks, the field of renewable energy development and utilization has been blowing frequently recently.
 
On March 9, the National Energy Administration revealed that it will take multiple measures to speed up the promotion of carbon peaking and carbon neutrality. We will formulate more active new energy development goals, promote the full realization of onshore wind power and photovoltaic power generation without subsidies; develop hydropower in accordance with local conditions; and actively and orderly develop nuclear power under the premise of safety.
 
On March 11, the Ministry of Industry and Information Technology issued the "Specification Conditions for the Photovoltaic Manufacturing Industry (2021 Edition)", proposing to guide photovoltaic companies to reduce photovoltaic manufacturing projects that simply expand production capacity, strengthen technological innovation, improve product quality, and reduce production costs.
 
The research report recently released by Tianfeng Securities pointed out that the carbon peak and carbon neutral commitments will drive the accelerated transformation of energy, and there is strong certainty that wind power and photovoltaic installations will achieve high growth. With the development of the superimposed industrial chain and the drop in installed costs, the wind power and photovoltaic power generation industries will get rid of subsidy dependence and gain further development. New energy operating companies are expected to fully benefit.
 
CHIKO Solar has been focusing on manufacturing and designing solar mounting structure for more than 10 years. CHIKO products have been installed and used in more than 120 countries and regions, with a cumulative installed capacity of more than 15GW. At the same time, we can provide special designs, any other problems, and more solutions, please contact us!

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