Why Is the "Compulsory Supporting Industry" of Photovoltaic Bidding Repeatedly Prohibited?

2023-09-15 09:48:40

The industry calls for local policy corrections to strike hard and be implemented.

A rumor of "compulsory supporting industry in a certain place" has been going crazy in the photovoltaic circle recently, which has aroused a heated discussion.

"Allocation of 260 MW fishing-photovoltaic complementary project in a certain place in Jiangsu: no less than 250 million donations + 1 billion industrial support + 60 million US dollars of foreign capital", The screenshot of the document lists a number of new energy projects in the " that are becoming "fragrant baboons" for local governments to attract investment and complete their tasks. The non-technical cost of new energy investment is rising and the pressure is enormous.

, there were many places in the development of photovoltaic projects before." It has attached harsh conditions such as "compulsory industrial matching", which has been resented by photovoltaic enterprises. In August, September and December of 2022, the National Energy Administration issued three documents in succession to regulate that investment in supporting industries shall not be compulsorily required and project deposits shall not be collected in violation of regulations.

Nowadays, there are signs of resurgence of compulsory supporting industries in many counties and districts, and even some places knowingly commit crimes against the wind, which seriously disturbs the fair and open market environment. The industry calls for local policy corrections to strike hard and be implemented. How outrageous can

industrial supporting requirements be? At

the national level, the " issued by the National Energy Administration on December 26, 2022, however, the hidden rules and additional conditions of photovoltaic development projects are still emerging in endlessly. According to media statistics, last year, 13 regions belonging to six provinces attached the requirement of "supporting industries" in photovoltaic bidding, and various "investment conditions" were various. The situation has not changed

this year. The reporter simply selected a few examples:

On August 25, a county in Yunnan issued an investment invitation announcement for distributed photovoltaic development projects, which required that "investors should help and drive the local rural revitalization and village collective economy". If the investor introduces industrial projects that are in line with the orientation of local economic and social development and can be landed, and has the conditions to start simultaneously with photovoltaic development projects, priority should be given to them.

In addition to the above-mentioned county in Yunnan, on August 15, a county in Sichuan, 2000 mu of wasteland, 100 MW installed photovoltaic power generation investment, requires enterprises to invest in photovoltaic projects at the same time, the need to invest in the construction of a rural revitalization project or hotel project, known locally as the "1 + N" model.

Also in August, a county located in southern Shaanxi Province proposed in the photovoltaic investment invitation that the declaring enterprise must support or introduce an industrial entity enterprise with an investment amount of not less than 50 million yuan, and the production and operation time must be more than five years. Or, the total amount of direct foreign investment introduced by the declaring enterprise within three years shall not be less than 10 million US dollars. In addition, the county's announcement also requires that "enterprises participating in the bidding need to pay 5 million yuan in good faith for the project first."

Of course, these are not as high as the conditions put forward by the 4200 mu fishing-light complementary project in a county of Jiangsu Province, which has aroused heated discussion recently.

The county has put forward the requirement of supporting foreign investment of 60 million US dollars, and needs to register and establish foreign-invested enterprises in the local area. The investment enterprises are required to introduce manufacturing projects with a total investment of not less than 1 billion yuan and meet the relevant requirements of local industrial development; It also requires that no less than 10 million yuan per year be arranged during the operation period of the project to support the revitalization and development of local villages, and that this clause be regarded as the first competitive clause, which can be raised voluntarily by investors.

Photovoltaic enterprises can not bear the heavy burden

of "these mandatory requirements not only can not introduce local industries and bring benefits, but also deter willing enterprises, seriously damaging the local business environment, and ultimately often lose more than gain." A photovoltaic project developer told reporters that this "additional condition" for the development of power plants has led to a sharp increase in the non-technical costs of photovoltaic development enterprises, and a "hoop curse" has been put on the project. The cost of

photovoltaic project development can be divided into "system cost" and "non-technical cost". Land rent, allocation of energy storage costs, franchise fees, and various "additional conditions" are all "non-technical costs". Although the cost of photovoltaic manufacturing in

China continues to decline, the cost of project development is always higher than global average, which is related to the long-term high "non-technical cost". Many of these "non-technical costs" are unreasonable costs such as "compulsory industrial matching".

In order to create a good business environment and promote the realization of the double-carbon target on schedule, the relevant departments of the state and local governments have repeatedly issued documents requiring the standardization of the order of new energy development and construction, not forcing the development of wind power and photovoltaic power generation to be bundled with the investment of other industrial projects, and not transferring the investment related to social welfare undertakings undertaken by local governments to enterprises. In

May last year, the National Development and Reform Commission and the National Energy Administration issued the Implementation Plan on Promoting the High-quality Development of New Energy in the New Era, reiterating that "the unreasonable investment cost of new energy enterprises shall not be increased in any name"; standardizing the development order of new energy industry, correcting the practice of violating fair competition in time, and eliminating local protectionism.

However, there are policies and countermeasures, and the cost of unreasonable investment in some areas is still increasing. But all rational enterprises will calculate the cost account, and the most direct consequence of similar "rogue" policies is that the willingness of enterprises to invest is greatly reduced, and no one is interested in the project at last.

Reporters noted that the above-mentioned investment announcement of a county in southern Shaanxi was issued on August 18, and the deadline for registration was August 25. However, on August 31, the local government issued a notice of "delayed" investment invitation, saying that "due to the imperfect declaration materials of all enterprises and the failure to pay the project earnest money to the designated bank in time", the investment invitation time was postponed for a week, and the deadline was changed to September 7.

Obviously, this is because the local conditions are too high for enterprises to stand. Up to the time of publication, the local government has not yet announced the further situation of the investment invitation. I wonder if the county's "one-week extension" can still wait for the "silly son of the landlord's family"? Data from

the Ministry of Finance show that from January to July this year, the budgetary revenue of local government funds was 2638.2 billion yuan, down 15.5% from the same period last year, of which the revenue from the transfer of state-owned land use rights was 2287.5 billion yuan, down 19% from the same period last year. In the context of the severe shrinkage of land finance, local governments are eager to find new economic growth points.

Photovoltaic and other new energy projects are closely related to land and natural resources, which are in the hands of local governments and can be used in exchange for industrial landing and economic development. In some areas with weak industrial base, sunshine resources have become the last card for local economic development, wishing that a project could be exchanged for several times the local GDP.

In addition, the disorderly market competition has also boosted the "self-confidence" of local governments. Some observers pointed out that in the fierce market competition, some people fishing in troubled waters in order to obtain project indicators regardless of the cost, "the local government dares to agree to any request, which has increased the appetite of the local government."

However, unlike real estate and manufacturing, the driving effect of the new energy industry on the industrial chain and local finance is not obvious. From the realistic results, the new energy resources in many places have not been able to exchange for industrial development, but will leave a mess.

The aforementioned observers said that those who fish in troubled waters first fooled the project indicators, and many of them agreed to the government's conditions, which could not be pushed forward due to various reasons, and ultimately could only act shamelessly. If something goes wrong, the local government will take care of it in the end.

The above-mentioned photovoltaic development industry insiders told reporters that even powerful photovoltaic development enterprises are difficult to meet the requirements of some places, even if they can introduce investment for the local, but if the local supporting facilities are not in place, the requirements of transportation, water, electricity, upstream and downstream industrial chains can not be met, and the industry can not be landed. The dream of "resources for industry" of

local governments is difficult to realize, but the more serious "side effect" is that these "additional conditions" make the local business environment worse. Formal photovoltaic development enterprises are reluctant to invest in the development of photovoltaic projects, and eventually form "bad money expelling good money", and those enterprises that "deviate from the door" are popular. The

final result may be the same as that of a county in southern Shaanxi, where no one cares about the "fragrant baboon" in their hands like their own treasures. Instead, it is better to settle accounts earlier, one yard to one yard, and develop the photovoltaic project first.

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