The progress and intensity of renewable energy subsidies have been significantly improved

Behind the huge subsidies, the problem of long-term arrears in renewable energy subsidies still exists. On the one hand, the funding source can not meet the demand for subsidies, and on the other hand, the renewable energy development fund has not been fully collected. Coupled with the irrational investment of some enterprises or regions in the early stage of the development of the industry, the gap in subsidy funds is getting larger and larger.

According to the calculation of the wind energy Professional Committee of the China Renewable Energy Society, by the end of 2021, the cumulative arrears of renewable energy power generation subsidies are about 400 billion yuan, and it is expected that the electricity price subsidy gap will peak in 2028.

Industry experts believe that photovoltaic and wind power have entered the era of parity, the total amount of renewable energy subsidies has been "closed", and the time is ripe to solve the problem of subsidy arrears. To this end, many departments in our country have begun to coordinate the solution.

In March 2022, the National Development and Reform Commission, the National Energy Administration, and the Ministry of Finance jointly issued the Notice on carrying out Self-examination of Renewable energy power generation Subsidies, requiring verification of renewable energy power generation subsidies to further find out the subsidy base.

In August 2022, the National Development and Reform Commission, the Ministry of Finance and the State-owned Assets Supervision and Administration Commission of the State Council required that the State Grid and the Southern Power Grid would respectively establish Beijing and Guangzhou Renewable Energy Development Settlement Services Co., Ltd. to solve the subsidy funding gap through special financing in accordance with market-oriented principles on the basis of financial allocations.

Subsidy verification is the key to solve the problem of renewable energy subsidies. At the same time of making it clear that the subsidy funds in arrears are reissued, the subsidy funds for non-compliant projects should also be recovered.

The National Energy Administration also made it clear in the key tasks of this year's energy work announced at the end of 2022 that it should "complete the verification of renewable energy subsidies." Since last year, Taiji Industrial (6.500, -0.08, -1.22%), Jiangnan Chemical (4.300, 0.00, 0.00%) and other listed companies have announced that they were required to return subsidy funds due to the verification of renewable energy subsidies.

In sharp contrast to the return of high subsidies, the progress and intensity of subsidies for compliance projects have been significantly improved.

The person in charge of China Energy Saving Solar Energy (5.440, 0.05, 0.93%) Technology Co., Ltd. disclosed to reporters that the National Development and Reform Commission, the National Energy Administration and the Ministry of Finance announced the first batch of verification catalog lists at the end of 2022, and the company received 3.626 billion yuan of renewable energy subsidy funds for the whole year of 2022. Of the total, the state subsidy is about 3.501 billion yuan. This amount is far ahead of the total subsidy for two years.

From the feedback within the industry, at the end of 2022, many photovoltaic investment companies "surprise" received a higher amount of subsidies, and throughout the year, the subsidy funds received were significantly higher than the previous year.

Although the national policy in the era of parity will no longer subsidize new renewable energy projects, due to the huge base of stock projects in the era of electricity price subsidies and the project life cycle will still exist for more than ten years, the state financial subsidies will continue for a longer time.

"The issuance of local subsidy funds for national renewable energy electricity prices will help to solve the funding gap for renewable energy power generation subsidies, help to improve the financial situation of new energy development enterprises, improve their reinvestment capacity, and ensure domestic power supply." Zhang Jianhong, executive director of the Environmental Technical Economy Branch of the China Society of Technical Economics, said that it is expected that more subsidies will be issued in the future, which will help the sustainable development of the new energy power generation industry.