Cost reduction is the most crucial key to solving the renewable energy problem

In recent years, China's renewable energy has developed rapidly. In China's energy development, renewable energy has become a major component of energy growth. Renewable energy has three phases, gradually becoming the dominant force in the overall growth rate, increment, and later. It should now be a new phase of growth to become the main force. By the end of June this year,  renewable energy power installed capacity accounted for 35% of total installed capacity, of which hydropower reached 338 million kilowatts, and photovoltaics reached more than 100 million kilowatts. In the first half of this year, renewable energy accounted for 70% of the new installed capacity of electricity, which is also a clear sign. Renewable energy has occupied a major position in the new supply of energy. At the same time, the rapid development of renewable energy sources has driven our nation’s energy consumption structure to change. The proportion of coal consumption has declined year by year. In the first half of this year, the proportion of coal decreased by 0.6% compared with the same period of last year. The proportion of clean energy, including natural gas, nuclear power and renewable energy, rose by 0.3% in total. One litre or one drop shows that the energy structure is undergoing important changes.  At the same time, we also saw that, while expanding the scale of renewable energy, the technological progress is accelerating and the cost is rapidly decreasing. Photovoltaic power generation can be seen in the competition of photovoltaic leading bases last year, and the average per-kilowatt is decreased by 2 Dime. Photovoltaic power generation can also reach 5-6 cents in the best resource areas. Globally, more photovoltaic power stations, wind power, and offshore wind power have many places that can already reach the level of competition with fossil energy. Therefore, the development of renewable energy sources has seen us have seen a good prospect and strengthened us. Confidence. While our country is rapidly developing renewable energy, we have also encountered problems in its development. On the one hand, it is the problem of abandoning wind, abandoning light, and abandoning water. In addition, as technology is declining, the cost of non-technical technology is rising while the cost of renewable energy is declining. In order to solve these two problems, as the focus of our current work, according to this year's "Government Work Report," the state has made it a priority to resolve abandoned water, abandoned wind, and abandoned light. The rate of abandonment of photovoltaics dropped by 4.5 percentage points. Within two years or so, basically solved the problem of abandoned wind and abandoned light. The rate of abandonment of hydropower is also falling. We must reduce the cost of renewable energy, which is also the most important task. Our recent work focus is to double down. One is to abandon the electricity rate and lower the cost. The various problems encountered in renewable energy and the reduction of costs are the key to solving these problems. During the “13th Five-Year Plan” period, the development of renewable energy mainly focused on two aspects of work. First, planning guidance on the development of renewable energy. A few days ago, guidance on the implementation of the 13th Five-Year Plan for renewable energy development was issued. For renewable energy planning, wind power and solar power generation are mainly photovoltaic power generation, hydropower and biomass power generation, and annual arrangements have been made for the development of regional distribution. Because of our past plans, other than hydropower, other plans have not been implemented in the region and have not yet reached the year. This plan aims to make renewable energy an orderly development and implement it on an annual scale. And arrangements have been made for how to implement the annual scale. One is the orderly development of renewable energy, and it is necessary to make connections between the development of electric power and distribution planning and convergence. In this management mechanism, the annual increase in the annual scale of wind power photovoltaics must first implement the delivery and consumption of power grids. This is to avoid the problem of abandoning the wind and discarding light in the future. It is also the main direction of our recent work. At the same time, the National Energy Administration, together with relevant departments, is formulating a five-year plan for clean heating in the northern region. In this plan, renewable energy heating and heating will also be an important aspect. In the development of renewable energy, renewable energy power is now the main force, but it is also necessary to accelerate the development of renewable energy heating. Heat utilization is an important aspect of the development of renewable energy. It can be seen that the use of geothermal energy, utilization of biomass energy, and solar heating have also accelerated in recent years. With the advancement of clean heating work, we believe that it will be a period of great development for renewable energy heating in the future. Second, reduce costs. Only by reducing the cost, can the competitiveness go up. In terms of cost reduction, there are four main aspects: First, relying on technological progress, only the most advanced technologies are developed, and they can be applied very well to make renewable energy alive. The "leadership" plan promoted in the photovoltaic field requires the use of the most advanced photovoltaic products and also represents the most advanced level of photovoltaic manufacturing. In this year's photovoltaic construction, we must increase the construction scale of the photovoltaic leading base, and at the same time Start the construction of photovoltaic frontier technology. In this way, specialized markets are provided for advanced technologies; secondly, non-technical costs are reduced and our technical costs are declining, but non-technical costs are rising. What kind of non-technical costs? There is a rising trend in land. There are some local government-supported measures that are weakening and even increasing the costs that should not be increased. Some of the renewable energy projects share some of the costs of collecting resources and these costs must be reduced. The third is to implement the national policy. The project of sending renewable energy power generation projects should be built by the power grid company, but many places are under construction by new energy companies. In accordance with the cost of photovoltaic, about 5 cents per watt, added to the photovoltaic project, this must be canceled. In this year's photovoltaic leading base, we must first realize this step. We must give the construction of the sending project to the power grid company. We will implement it first in the following organization base. Full acquisitions, renewable energy guaranteed acquisition policies must also be implemented. If renewable energy is built up, technology can reach advanced levels, but we will not allow it to generate electricity and all technological advances will be offset. We must solve the problem of abandoning wind and discarding light, and increase the utilization of wind power and photovoltaic power. We can make some calculations. At present, technological advances in wind power can already be achieved in Inner Mongolia and northern Hebei. In areas where wind energy resources are the best, annual utilization hours can reach 3,000 hours or more, and in areas where it reaches 3,000 hours or more, wind power can be subsidized. Electricity prices can reach 3 cents. There is a state-owned enterprise in the eastern part of Inner Mongolia. Wind power was built in a donkey-built factory, and 200,000 KW of wind power did not require state subsidies. In areas with the best resources, as long as the non-technical costs are removed and the full-fledged acquisition policy is put in place, it is entirely possible to compete with fossil energy. We must also increase our efforts in solving the problem of subsidy and deficiencies. Taking photovoltaic power generation as an example, there are several foreign projects that are costly compared to the same period. Some land costs are relatively high. If the grid company does not build a project, it adds to the project, which also increases costs. There is also a very important point, the cost of capital is also much higher than the international level. If we add up these three aspects, we can have a 1/c price cut. In areas where the wind power resources are the best, if no power curtailment occurs, 15-20% can be reduced by 1 cent if it can be removed. Promoting the implementation of these policies can accelerate the arrival of the era of renewable energy. Fourth, reform and innovation. An important goal is to create conditions for the efficient use of renewable energy, but also to make full use of renewable energy. What we need to do now is to vigorously promote the development of distributed renewable energy. Wind power, photovoltaic power generation, and other distributed power generation that are involved in distribution networks reduce power transmission and distribution prices through power reforms. In simple terms, they reduce network fees and create better market conditions for distributed use. Renewable energy realizes early access to the Internet. Comrades, the "13th Five-Year Plan" period is a crucial period for the development of renewable energy. It will be a time when the scale will continue to maintain a relatively rapid development, and it will also be a crucial period for us to overcome difficulties, reduce costs, and reduce subsidies. This is an important task that we need to complete during the 13th Five-Year Plan period. Finally, to measure whether we have completed the tasks of the “13th Five-Year Plan” period by 2020, not only how much renewable energy we have built, but also whether the technical level has reached a world-class level and whether the cost has been reduced. This is an arduous task facing our entire industry.