On the afternoon of August 29, 2024, the "Photovoltaic Power Station Construction Bidding Price Mechanism Symposium" was held in Beijing.
Key attendees included:
Organizers: China Photovoltaic Industry Association
Regulatory Authorities: Ministry of Industry and Information Technology, State-owned Assets Supervision and Administration Commission, National Energy Administration
Power Generation Enterprises: Representatives from China Huadian Corporation, China Datang Corporation, China Energy Investment Corporation, State Power Investment Corporation, China Huaneng Group, China Three Gorges Corporation, China National Nuclear Corporation, among others.
Photovoltaic Manufacturing Enterprises: Representatives from LONGi Green Energy, Trina Solar, JA Solar, Sungrow Power, JinkoSolar, Canadian Solar, Astronergy, Tongwei Co., Ltd., and others.
Key Discussion Points:
Recently, some enterprises have reported to the China Photovoltaic Industry Association that the bidding price mechanism in the downstream power station tendering process has led to price collapses, contributing significantly to the continuous decline in photovoltaic product prices. The meeting aimed to better understand the real situation, promote upstream and downstream coordination, explore solutions, and guide the healthy development of the industry.
Key Conclusions:
1、The current situation of industry-wide losses is detrimental to the sustainable and healthy development of the photovoltaic industry. Unreasonably low prices are also unfavorable for ensuring product quality and delivery for downstream power station owners.
2、Joint efforts from upstream and downstream enterprises are needed to further optimize the bidding mechanism for photovoltaic power station construction. This could include adopting a two-stage bidding process, using a reasonable average price as a target price, and incorporating factors such as product and technological innovation, product quality reliability, intellectual property, sustainable operational capacity, contract performance capability, social responsibility, ESG (Environmental, Social, and Governance), independent control, and green supply chain into the evaluation criteria.
3、The China Photovoltaic Industry Association will take the lead in compiling and releasing price indices and cost indices to better reflect the current prices of photovoltaic products, which will serve as an important basis for price adjustment mechanisms. Drawing on the successful experience of photovoltaic technology leader bases, a certain scale of power stations in large wind and solar bases will be set aside to support the application and industrialization of advanced and efficient technologies.
4、Upstream photovoltaic manufacturing enterprises must fully recognize their primary responsibility in resolving the current industry challenges. They should avoid vicious competition, make decisions and take actions from an industry perspective, adhere to innovation-driven development, commit to long-termism, and pursue win-win cooperation to jointly maintain fair competition.
5、Further optimization and improvement of downstream photovoltaic power station electricity pricing policies are necessary, including addressing issues such as curtailment of solar power, implementing the "Fair Competition Review System," and regulating unreasonable practices by local governments, such as industrial support and local protectionism. This will help reduce the non-technical costs of photovoltaic power generation, allowing the benefits of cost reduction and efficiency gains in the upstream manufacturing sector to be truly shared with the downstream application sector.
Source：https://mp.weixin.qq.com/s/5ZT3q_TSnO-Rlw5F1GCfnA