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Why are the consumption conditions of the photovoltaic industry so important?

      Since the beginning of this year, with the further improvement of technology, the world's lowest photovoltaic power generation cost record has continued to break through, with a historical quote of 1.35 cents/kWh, which is less than RMB 0.1/kWh. In many regions of the world, due to the small constraints of "non-technical costs", photovoltaic power generation "one dime per kilowatt-hour" has become a reality.
  However, with the advent of the era of domestic parity, the photovoltaic industry wants to "ride the wind and waves", in addition to the advancement of technology itself, it needs the guarantee of consumption conditions. Entering the parity stage, consumption conditions will become the biggest constraint on the scale of new photovoltaic installations.
       Since the beginning of this year, the new crown pneumonia epidemic has caused a certain impact on power demand. However, in this case, according to the data released by the China Photovoltaic Industry Association, the installed capacity of photovoltaic power generation in my country in the first half of the year increased by 0.88% year-on-year. At the same time, the utilization rate of new energy power generation such as photovoltaics is also rising against the market. According to statistics released by the two major power grid companies recently, in the first half of the year, the utilization rate of wind and solar power generation in the State Grid's operating area was 96.9%, and the utilization rate of renewable energy generation in China Southern Power Grid reached 99.87%, an increase over the same period last year.
       In 2020, the state will actively support and give priority to the construction of non-subsidy and parity grid-connected photovoltaic power generation projects, and promote the smooth transition from photovoltaic to parity grid-connected stage. According to Qin Xiao, director of the Solar Energy Division of the New Energy Department of the General Institute of Hydropower and Water Resources Planning and Design, in 2020, a total of 33,509,100 kilowatts of bidding projects will be declared nationwide, of which 434 projects will be included in the scope of national bidding subsidies in 2020. The total installed capacity is 25,967,208 kilowatts. In 2020, the nation's new consumption capacity will reach 48.45 million kilowatts.

However, due to the gradual decline in the cost of new energy power generation and the further improvement of competitiveness, the scale of clean energy grid connection will continue to grow, which means that the consumption capacity will also face greater challenges. According to the "China New Energy Power Generation Analysis Report 2020" recently released by the State Grid Energy Research Institute, in 2020, the cost of photovoltaic power generation in China is expected to be 0.245-0.512 yuan/(kWh). By 2025, the cost of photovoltaic power generation in China will be in Between 0.220-0.462 yuan/(kWh).

Combining China’s power market construction process and the evaluation of the effectiveness of different trading mechanisms in promoting new energy consumption, the State Grid Energy Research Institute believes that the next step should focus on improving China’s peak shaving auxiliary service market mechanism and new energy trans-provincial trading mechanism, and further Give full play to the role of market mechanisms in enhancing the ability to absorb new energy.

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