Policy encourages capital predators to "hold up" photovoltaics

On November 25, Shenzhen Fangda New Energy Co., Ltd., a wholly-owned subsidiary of Fangda Group Co., Ltd., invested 4 billion yuan in Pingxiang, Jiangxi Province, and plans to build a 500 MW solar photovoltaic distributed power station project in the next three years. Fangda Group Chairman Xiong Jianming part of the photovoltaic power plant master plan.

According to reports, in 2014, PV power plants showed an upsurge in capital attraction. Only the capitals currently invested by China Resources Solar, GCL-Poly, Evergrande Real Estate, and China Minsheng Investment Co., Ltd. One hundred billion, and this photovoltaic power plant construction trend is still expanding.

100 billion capital flows into the major companies currently entering photovoltaic power plants. Evergrande Real Estate plans to invest a maximum of 90 billion yuan; China National Investment plans to invest 30 billion to 500 billion yuan; in addition, Hairun PV acquires and invests in photovoltaic power plants. The total contracted amount of the project has exceeded 30 billion yuan.

Xiong Jianming said in an interview recently: “In the next four years, we will invest 20 billion yuan in Jiangxi to build 2 GW and more than 80 distributed solar photovoltaic power plants.” Nanchang, Shangrao, Pingxiang, Yichun, and Jiujiang are currently Actively docking.

"The current state's policy support for the photovoltaic industry is one of the reasons for promoting the influx of capital into photovoltaic power plants. Since 2013, in order to alleviate the oversupply situation of domestic photovoltaic modules and raw materials, the distributed photovoltaic power generation countries have successively introduced photovoltaic power generation subsidy policies; In October this year, the National Energy Administration issued a notice to promote the photovoltaic power plant financial products and services.” Polaris Solar photovoltaic network Zhang Zhiwei told reporters.

In October this year, the National Energy Administration issued the “Notice on Further Strengthening the Construction and Operation Management of Photovoltaic Power Plants”, encouraging financial institutions such as banks, insurance and investment banks to provide preferential loans to photovoltaic power stations and implement the pledge of power for sale of electricity to the project. Loan mechanism.

Wang Xiaoyi, general manager of Beijing Sanglin Lantian Automatic Control Technology Co., Ltd., who is working on a photovoltaic power plant project, told reporters: “The above notice has solved the problem of the loan mechanism for photovoltaic power plant projects. The most difficult part of financing photovoltaic power plant projects before was the lack of policy recognition. Collateral, and the operation and construction of the photovoltaic power plant is also a large-scale capital occupation project."

Wang Xiaoyi told reporters that if companies currently contribute 20% to 30% of the total investment in photovoltaic power plant projects, they can basically instigate project financing and promote project development. Prior to this, companies had to contribute 40% or more.

In addition, the construction of photovoltaic power stations will also receive multiple subsidies. Take Fangda New Energy as an example, the Pingxiang Power Station project signed by the company will respectively enjoy the “Notice on Further Implementing the Distributed PV Generation-related Policies” of the National Energy Administration (Guoeng Xinneng [2014] No. 406) and the Jiangxi Provincial Government's "Accelerating the Implementation of Photovoltaic Power Generation Applications in the Province" and other policy subsidies, from the national to local subsidies totaled 1.2 yuan / degree.

“Photovoltaic power plants have been encouraged by national policies and have become one of the few benign investment industries. Objectively speaking, the domestic traditional energy industries such as coal-electricity and oil and gas, including steel and shipbuilding and other bulk commodities industries, lack the appeal to attract market capital, and real estate is also Not to be seen by the country, capital needs to find better investment channels,” said an industry insider who declined to be named.

Another big reason why huge theoretical profit capital flows into photovoltaic power plants is profit expectations. According to industry insiders, “The current theoretical operating period of PV power plants is 25 years. After the power station is completed, it can recover costs in 8 years and guarantee an internal rate of return of more than 10%.”

Regarding the current view of the profitability of the photovoltaic industry, Yang Huaijin, Chairman of Hairun Solar, who is leading the company's transformation, represents the current trend. “After 2012, the photovoltaic industry became a real energy industry, changing from product manufacturing to energy supply. The 25-year lifetime feature has led to the need for financially strong companies to take over. The peak of photovoltaic power generation in summer in Germany The ratio is as high as 40%, and China is less than 1%. Photovoltaic space is very large from 1% to 40%. It will become an energy industry in the future."

According to people in the industry, to maintain the power generation capacity of photovoltaic power plants for 20 to 25 years, the problem of attenuation of photovoltaic modules is the key. It is understood that photovoltaic power plants in the western part of China have experienced quality problems such as high attenuation rates of components, and some photovoltaic power plants that use low-quality components to reduce costs have less than 25 years of power generation capacity.

Lin Junsheng, deputy general manager of Manz Group in Asia, said, “At present, most of the photovoltaic power plants in China still use polysilicon batteries, which is difficult to avoid because of the attenuation rate. In addition, the conversion rate of solar energy is not high. These are the cost factors for building photovoltaic power plants. ”

According to Lin Junsheng, many companies are currently studying CIGS thin-film solar technology to replace polysilicon technology. “The conversion rate of CIGS thin-film module production module has reached 14.6%, and the experimental conversion rate has reached 20.8%, which is 20.4% higher than that of polysilicon battery.”

“For photovoltaic power plant developers who invest and operate, higher solar conversion rates, lower decay rates, and more sustainable power generation capabilities are more convenient channels for banks and other financial institutions to support. Technical reasons," said a photovoltaic site analyst who declined to be named.

The Risk Behind Surging The surge in investment in photovoltaic power plants does not mean that they can develop smoothly.

On November 28th, Xinda New Materials announced that the company intends to transfer 51% of Liaoning Xinda New Energy Investment Co., Ltd.’s shares to natural person Luhangfeng. After the equity transfer, the company no longer holds Liaoning Xinda new equity.

Liaoning Xindaxin is a joint-venture company registered by Xindaxinxin and Zhongneng Guodian (Beijing) International Energy Investment Co., Ltd. It is mainly used for the operation of photovoltaic power station projects in Chaoyang County, Liaoning Province, with a total investment of 8 billion yuan.

According to the statistics, due to land topography and other factors, the photovoltaic power station project operated by Xindaxin is generally about 10 megawatts of power plant construction, which results in a relatively high cost of operation and maintenance of the completed small-scale power plant in the later period.

In addition, the local land is not allowed to be obtained through long-term investment such as leasing, and only one method is allowed to be transferred. As a result, the amount of funds invested by the company in the power plant project invested by the company is too large, which takes up a large amount of capital resources of the company and affects the photovoltaic power station. The continuous growth of construction scale.

As of October 31, 2014, Liaoning Xindaxin's total assets were 309 million yuan and net assets were 461.9992 million yuan. From January to October 2014, operating income was 0 yuan and net profit was 2212.121 million yuan (unaudited).

The other set of data will affect the nationwide photovoltaic power plant project. According to data from the National Energy Administration, in the first three quarters of 2014, the nation’s newly added capacity for photovoltaic power generation was only 3.79 GW and the annual target was 13 GW.

“The grid connection issue has always been a constraint to photovoltaic power generation. Since the photovoltaic power station and grid construction period are not in synch, local grids have limited capacity to absorb photovoltaic power, and the phenomenon of “discarding light” has begun to appear.” industry sources said.