Photovoltaic power plant concession tender "losing price" hurt private enterprises

The final results of the country’s second round of concession bidding for large-scale photovoltaic power plants will be announced in the near future, and many private PV companies have expressed their frustration at the bid price as low as 0.7288 yuan/kWh.

According to the Daily Economic News report on September 2, the country’s second round of concession bidding for large-scale photovoltaic power plants has been over for more than half a month. The result of the final bid price has not yet been announced, but the reporter learned from the New Energy Department of the National Development and Reform Commission’s Energy Bureau on September 1. The bid winning bidder and the bid winning bid price have basically been approved, and the final result will be announced in the near future.

“According to the principle of obtaining the lowest price, the 0.7288 yuan/kWh quoted price of the Yellow River upstream hydropower development company under the China Power Investment Group should become the final successful bidder for the Qinghai Gonghe 30 MW project.” The relevant person in charge of the New Energy Department told reporters, “ The final result has not yet been formally announced. Although it does not rule out the possibility of accidents, it is unlikely."

For the bid price as low as 0.7288 yuan/kWh, a number of private photovoltaic companies expressed their frustration. "(We have no idea about the winning price of this level)." Some people also said, "This price is only for those central enterprises that have no financial pressure. Can do it."

State-owned enterprises quoted 1 yuan/kWh under ultra-low-cost "photovoltaic power station concession tender results have been roughly approved by the Energy Bureau." Yesterday, the National Development and Reform Commission Energy Department, the new energy department responsible person said in an interview with reporters.

The person said, "The principle followed in this tendering process is that the lowest bidder wins the bid. At present, our final bidding price will be determined based on this principle."

On August 16th, the national second-round license price of large-scale photovoltaic power plants was opened. All 13 projects had the lowest on-grid price quoted below 1 yuan/kWh, the highest price was 0.9907 yuan/kWh, and the lowest price was only 0.7288 yuan. Yuan/kWh.

According to the bidding principle of the lowest bidding price of the Energy Bureau, the reference price for the tender price will fall between 0.7288 yuan/kWh and 0.9907 yuan/kWh, including the upper and lower limits.

The so-called principle of winning the lowest bidding price, according to the reporter’s understanding, is because the bidding documents stipulate that if the on-grid tariff is consistent with the technical plan report and the financial evaluation report, the lowest bidder will win the bid.

According to the above principles, among all 13 project bids, the Upper Yellow River Hydropower Development Company under the China Power Investment Group will be the final winning bidder for the Qinghai Gonghe 30 MW project at a price of 0.7288 yuan/kWh. This is the round of photovoltaic concession rights. The lowest price in the tender; the Xinjiang Energy Co., Ltd., which is under the China Power Investment Corporation, became the winner of the Xinjiang Hetian 20 MW project with a price of 0.9907 yuan/kWh.

The above-mentioned sources told reporters that the final result will be announced in the near future. “I can't tell you the exact time of the announcement. Although the general contents have been confirmed, there are still variables in it.”

“The current specific bidding work is operated by China Import and Export Equipment Tendering Co., Ltd. After that, the results issued by them will be submitted to the Energy Bureau and the Energy Bureau will then announce the opportunity.” The official said.
Private photovoltaic companies were injured In April 2009, 13 Chinese solar cell manufacturers such as Wuxi Suntech, Yingli Group, and JA Solar alleged that they would be able to control solar power costs at 1 yuan/kWh in 2012.

For this round as low as 0.7288 yuan / kWh ~ 0.9907 yuan / kWh bid price, many domestic private photovoltaic companies collectively silent. According to analysis by industry insiders, the implication of “silence” is that private enterprises are very hurt and feel very depressed.

"This is completely a replica of wind power. The purpose of the government is to find out the reasonable costs of photovoltaic power generation through low-cost winning bids and test the affordability of enterprises. However, the current price level cannot reflect the current generation cost, even if it is pushed to two. To three years later, this price cost and income can not match.” A person in charge of the marketing department of a private photovoltaic company told reporters.
A private photovoltaic company official said, "17 to 18 years, who has this time to burn the bottom ah? Our company certainly can not do this." Another person in the industry believes that "the construction of power stations, need to occupy long-term funds This is because private enterprises cannot compete with state-owned enterprises.In fact, state-owned enterprises are using the money of the entire people to enclose the land first, and when the country begins to vigorously develop the photovoltaic power generation industry, the first enterprises to enter will at least lead the land prices. There is no chance. This level of electricity prices is actually building a high wall for people, and private enterprises are outside this wall."