China's new energy and renewable energy development: opportunities, constraints

The relationship between market mechanism and state guidance. At the initial stage of development, new energy needs the support and guidance of national policies, but it should follow the law of the market and cannot die. The ultimate goal of policy support is to build an endogenous market-oriented mechanism to support the sustainable development of new energy. At present, which new energy has more development prospects is still debated, which as a strategic focus for promotion and application, should be determined by the market. In addition, public finance support for new energy should have budgetary constraints. Theoretically speaking, public finance is an economic behavior in which the state (government) concentrates part of social resources to provide public goods and services for the market, mainly to meet the public needs of society. The new energy product itself is a competitive commodity, in the case of limited national financial resources, public financial expenditure should focus on supporting those non-competitive public utilities, and the growth of competitive products should be more determined by the market.

The relationship between financial subsidies and improved efficiency. At this stage, the development of new energy cannot be separated from government subsidies, but the government subsidy policy needs to implement the principle of efficiency and reduce the burden brought by the development of new energy to the national economy as much as possible. At present, China's subsidy policy for new energy enterprises is insufficient. First, it does not fully encourage advanced. Government departments only examine and approve the cost declared by enterprises, "high cost grants high subsidies, low cost does not give subsidies"; Second, it is easy to induce moral hazard. Some companies are no longer trying to control costs, but lie about the scale of construction, the timing of production and financial data; Third, the amount of subsidies often cannot keep up with technological progress and economic changes generated by market supply and demand, and in 2009, there was even a mistake that the amount of subsidies announced by government departments was higher than the overall cost of rooftop photovoltaic projects. Such subsidies have the opposite effect, and it is easy to cause the loss of national property.

Fourth, some suggestions on promoting the development of new and renewable energy in China

Reasonably expected scale of development. Accelerating the development and utilization of renewable energy and gradually increasing the proportion of high-quality clean renewable energy in the energy structure has become the only way for China to cope with the increasingly severe energy and environmental problems. To this end, we must actively promote the development of various types of renewable energy, but we must control the pace and avoid a "great leap forward" -style rush. In the past two months, China has taken a series of measures against the "double reverse" of our photovoltaic products in Europe and the United States, aiming to start the domestic photovoltaic market. Therefore, the development goal of 21 million kilowatts of photovoltaic should be appropriately adjusted for the "Twelfth Five-Year Plan".

Improve the pricing mechanism. At present, the price of energy in our country is difficult to fully reflect its scarcity and external costs. Therefore, it is necessary to establish and improve the system of paid use of resources and the price formation mechanism of ecological compensation system that reflect market supply and demand and resource scarcity, reflect ecological value and intergenerational compensation, and fully reflect the comprehensive social benefits such as the environmental value of renewable energy. On the one hand, the renewable energy pricing mechanism should be further improved, and factors such as price, technological innovation and sustainable development should be comprehensively considered in pricing. On the other hand, the environmental compensation mechanism should be further improved to internalize the external costs of traditional energy sources.

We will deepen reform of the electric power system. In order to create good conditions for renewable energy power generation, we should actively promote the reform of the relevant power system. First, the relevant provisions of the power Law should be amended to encourage new energy to be "dispersed online and consumed locally", and to build a legal and policy system conducive to the development of distributed energy. Second, deepen the reform of the power system, reform the profit model of power grid enterprises, establish an open and transparent power market mechanism with orderly competition, and provide institutional guarantee for improving energy utilization efficiency and promoting the development of new energy. Third, implement the renewable energy quota system as soon as possible, clarify the responsibilities and obligations of local governments, power grid companies, and power developers in the development, utilization and consumption of new energy, and focus on solving the enthusiasm of power grid enterprises to accept wind power from the system. Fourth, establish a technical support system and management system for connecting distributed energy to the grid, encourage the self-use of distributed energy, and explore the mechanism for supplying excess power to surrounding users.