The New Deal forced biomass power generation innovation business model

In contrast, the "annual implementation plan" of the wind power and photovoltaic industries has been issued, and the "annual implementation plan" of the biomass power generation industry has been delayed. Recently, the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration jointly issued the "Implementation Plan for Improving the construction and operation of biomass power generation Projects", which makes it clear that from 2021 onwards, biomass power generation projects will all be configured and determined through competition. The introduction of the policy has caused widespread concern in the industry and has been forwarded in the wechat "circle of friends".

Industry insiders said that the "implementation plan" adheres to the core principle of "receiving fixed compensation", determines the installed capacity of new subsidy projects, encourages the market-oriented operation of biomass power generation projects, and promotes the quality and efficiency of the biomass power generation industry.

We will specify 1.5 billion yuan in subsidies

The "implementation plan" has clarified that the amount of subsidies for new biomass power generation projects in 2020 is 1.5 billion yuan. From the 2020 central financial budget announced by the Ministry of Finance before, in the expenditure of renewable energy electricity price additional revenue arrangement, the total budget of biomass energy is 5.341 billion yuan. Li Shaofu, senior industry analyst at E20 Research Institute, said that the new project subsidy quota of 1.5 billion yuan in 2020, which is clear in the implementation Plan, accounts for about 28% of the total biomass energy subsidy budget, which can be said to be very strong.

Li Shaofu said that the new project subsidy ceiling of 1.5 billion yuan is set, so the project is sorted in order of the grid connection time of all units, and the earliest grid connection time will be given priority to receive subsidies until the subsidy quota is fully allocated this year. "It is expected that under the stimulus of the New Deal will trigger the seizure of projects under construction."

It is worth noting that the "implementation Plan" proposed that the subsidy funds should be jointly borne by the central and local governments, and the share ratio should be reasonably determined by regions, and the central share should be adjusted year by year and withdrawn in an orderly manner.

Li Shaofu said that on the one hand, this content takes into account regional differences, and is expected to give more support to regions with relatively backward economic development level and more urgent needs for biomass power generation projects; On the other hand, it is clear that state subsidies will be adjusted year by year and withdrawn in an orderly manner, while subsidies will be transferred to the local government, which may increase the risk of project payment.

Guo Yungao, secretary-general of the waste power generation Committee of the All-China Environmental Protection Federation, believes that the national subsidy is only temporary, and withdrawal is an inevitable trend. At the same time, the local government will solve the subsidy fund, which has certain risks.

It is worth noting that based on the principle of "compensation by revenue", in order to reasonably arrange the timing of project construction and control the rhythm of industrial development, the "Implementation Plan" specifically establishes an investment monitoring and early warning mechanism. To monitor the investment and construction of biomass power generation projects requiring central subsidies, if the total amount of subsidies required for new projects reaches the total amount of central financial subsidies in the year, the local government shall not approve new projects requiring central subsidies.

Introduce a market-based operation mechanism

Industry insiders said that on the one hand, the Implementation Plan adheres to "stability" : to maintain the continuity and stability of the policy; On the other hand, adhere to the "forward" : continue to improve the biomass power generation project management policy, clear market expectations.

"The Implementation Plan adheres to the old methods for old projects and new methods for new projects." Guo Yungao said, "The implementation plan clearly defines the overall idea of 'to receive compensation, new and old divisions, orderly construction, and stable development', giving the biomass power generation industry more policy adjustment and adaptation periods."

Li Shaofu also said that the "implementation plan" takes January 1, 2021 as the cut-off point, and will be configured in a competitive manner after 2021. The "Implementation Plan" proposes that from January 1, 2021, the biomass power generation projects that have been approved and not started in the planning and newly approved will all be configured and determined through competition. "The 'competitive configuration' initiative has long been implemented in the field of wind power and photovoltaic, and the effect is good." The introduction of this initiative by the biomass power generation project aims to encourage the market-oriented operation of biomass power generation projects."