Where Is The Confidence In The Development Of Distributed Photovoltaics?
The Distributed Photovoltaic Industry Has Once Again Reached a Watershed In Its Development.
In 2024, the distributed photovoltaic industry has been in frequent "crisis", the grid connection capacity has gradually decreased, and the signal of entering the market has become more and more obvious. In October 2024, China's "Distributed Photovoltaic Power Generation Development and Construction Management Measures (Draft for Comments)" was officially released. Article 36 clearly states that distributed photovoltaic power generation projects shall participate in the power market in accordance with relevant national regulations. Although no detailed regulations have been made, the "entry of distributed photovoltaics into the market" has become a foregone conclusion.
On November 19, the Development and Reform Commission of Hebei Province of China issued the "Work Plan for the Participation of Distributed Photovoltaic Power Generation in the Electricity Market of Southern Hebei Grid", which is the first policy document for the entry of distributed photovoltaic power generation into the market in China. This means that local governments in China have begun to formulate policies for the entry of distributed photovoltaic power generation into the market based on the development of local distributed photovoltaic power generation and the progress of power market construction. Enterprises need to adapt to the new changes in the industry and the new situation in the market as soon as possible.
Development Of Distributed Photovoltaics
From 2020 to 2023, China's newly added distributed photovoltaic installed capacity will be 15.52 GW, 29.28 GW, 51.11 GW, and 96.29 GW, respectively, nearly doubling every year. By the end of September 2024, China's cumulative distributed photovoltaic installed capacity will reach 340 million kilowatts, accounting for 44% of the total photovoltaic installed capacity. Whether in terms of installed capacity support or electricity contribution, it has become an important role in China's energy structure.
In this context, promoting distributed photovoltaics to participate in electricity market transactions is an unstoppable development trend and an inevitable test for distributed photovoltaics to become the main energy source. "my country's energy development has entered a new stage, and the stable and healthy development of the energy industry is of great significance." At the 8th Distributed Energy Carnival Seminar held recently, Lu Chuan, Chairman of Chint Aneng, said in his keynote report: "Although the uncertainty of the distributed photovoltaic market has increased in the short term due to policy changes, in the long run, the principle of both centralized and distributed development remains unchanged, and the market has stable growth space."
The voice of the leading enterprises has undoubtedly injected a "boost" into the development of the distributed photovoltaic industry. According to the International Energy Agency (IEA), in the next decade, solar photovoltaics will become the core force driving the rapid development of global renewable energy. By 2030, the capacity of ground photovoltaics will increase from the current 917.1GW to 3467.1GW, and distributed photovoltaics will also increase from the current 694.4GW to 2353.5GW. The industry has a promising development prospect.
Distributed Photovoltaic Profit Channels
For owners of distributed photovoltaic power stations, actively participating in market transactions is not only a wise move to comply with the trend of energy transformation, but also an important way to significantly improve the profitability of power stations and realize market value and asset appreciation.
Against this background, the value of green electricity and green certificate transactions is becoming highlighted. Green certificates can not only measure renewable energy power, but also represent the atmospheric environmental contribution per unit of electricity produced by renewable energy. It is a trading tool that converts the environmental attributes of renewable energy power into economic benefits. Green certificates fully cover renewable energy power such as distributed photovoltaics, creating more value realization channels and business opportunities for power station operators, aggregators, virtual power plants and other market entities, and expanding the profit space for distributed photovoltaics.
In addition, against the backdrop of overcapacity and capital tightening on the new energy manufacturing side, the asset side is experiencing accelerated development. Investment companies will increasingly value the assessment of the value of power station assets rather than the growth rate of installed capacity. This requires companies to complete the value transformation from "operation and maintenance-asset management", build a systematic distributed asset operation capability, and ultimately maximize profits.
New Model Of Distributed Photovoltaics
Leading enterprises are actively innovating business models to create a new "model" for the development of the industry. Among them, the 3.5MW household photovoltaic whole village development project of Chint Aneng in Huanghua Town, Zhucheng, Weifang, Shandong, China is quite representative.
The project transforms the original distribution network in the village through the whole village development model, and realizes the centralized development, design, construction, operation and maintenance, management and high-voltage grid connection of the power station. It is understood that after the completion of the project, it will generate more than 4.5 million kWh of green electricity each year, save 40,700 tons of standard coal in 25 years, and reduce carbon dioxide emissions by about 112,700 tons.
In the future, the application of distributed photovoltaics in agriculture, rural areas, transportation, construction and other fields will continue to deepen, and the integration and development with various industries will be closer. It will be deeply integrated with technologies such as energy storage and smart grids to form an integrated development. Faced with the new situation, Chint Aneng has also launched a package of smart energy solutions including zero-carbon homes and zero-carbon transportation, and continues to explore the combination and innovation of smart microgrids and various business scenarios to provide more intelligent and comprehensive solutions for cities and villages.