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China CSP FIT is officially taken into the agenda by Price Department of NDRC

Report from CSPPLAZA

FIT policy which is the key factor to affect China CSP demonstration projects development process has a new step forward. In the afternoon of May 4, 2016, New Energy and Renewable Energy Department of National Energy Administration, China Renewable Energy Engineering Institute, Electric Power Planning & Engineering Institute, Institute of Electrical Engineering of the Chinese Academy of Sciences, Zhejiang SUPCON Solar Technology Co.,Ltd, Suncan, State Power Investment Corporation, total seven relevant industry companies was summoned by National Development and Reform Commission Price Department to hold a comment symposium about making FIT.

It is a remarkable fact that this is the first time for Price Department to organize a CSP FIT exchange meeting initially, whereas, the majority of previous rounds of communication meeting are held by New Energy and Renewable Energy Department of National Energy Administration. This change at some extent shows FIT is officially taken into the working agenda of Price Department and official announcement of FIT is just around the corner.

Hou Shouli, Head of electricity Price Department, Yi Yuechun, Deputy Dean of China Renewable Energy Engineering Institute, Sun Rui, Deputy Dean of Electric Power Planning & Engineering Institute, Wang Zhifeng, researcher of Institute of Electrical Engineering of the Chinese Academy of Sciences and so forth have attended this meeting. According to their own demonstration projects’ actual situation, three participating companies stated their own suggestions on FIT issue; Meantime, On the basis of current CSP situation, Renewable Energy Department leaders and related industry leaders stated their own comments respectively for a coming reasonable FIT. Having the feedback from the above industry representatives, Price Department says FIT would be issued as soon as possible.

According to this meeting, Price Department didn’t show the attitude to strongly drive down the price standard. There was a rumor in CSP industry that FIT may be less than 1.1 Yuan/kWh which is an excessive misunderstanding at some extent due to a delay of FIT result. Currently, the whole CSP industry has reached a unification on FIT that a relatively reasonable and available FIT to start demonstration projects is okay, but not a higher FIT. The participating representatives at the meeting have also stressed great impacts on the industry by a strongly low FIT. It is expected Price Department would not ignore the real appeal of industry for no reason.

It is understood that because of the overall downward economy pressure this year and a busy transmission-distribution price reform and some even more crucial affairs a few months ago, Price Department failed to spend too much time on studying and formulating FIT issue. However, FIT has been officially taken into the agenda of Price Department after International Labor Day. It is anticipated FIT may be issued in May Probably.

From the point of demonstration projects proceedings, the issued time of FIT seriously affects the goal accomplishment of National Energy Administration to build a batch of CSP demonstration plants by the end of 2017. If FIT is issued soon, the construction of demonstration projects can be pushed forward as quickly as possible. Due to natural environment, the actual construction period of China CSP power station is short. Nevertheless, if FIT can be issued this month, part of projects still can catch more accelerated construction during the available construction period this year; if it is delayed one or two months, actual projects construction time for most of the project development will be limited this year which means almost a year would be wasted. China CSP industry people have been waiting for years in this promising industry. Some CSP enterprises have been unsustainable and technological innovation subjected to a weak market is teetering. From the point of government, it is also a great opportunity for China to foster new green economic growth point. The normal development of CSP industry should not be stopped because of government’s decision-making.

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