The largest PV power plant ran aground in Erdos

In September last year, when a memorandum of understanding for photovoltaic power plants with a long-term installed capacity of 2 GW was signed in Ordos, it was not only local officials who were happy. Bruce Sohn, the chief investor of First Solar, the project's investor and the world’s largest solar energy equipment manufacturer, happily explained to the reporter: “After the project is completed, the scale of this power plant will be the largest compared with the current operation in the world. Photovoltaic power plants are 30 times bigger!"

This large project in the Kubuqi Desert in the Hangzhan Banner of Ordos was originally scheduled to start on June 1. However, three months have passed and the desert is still a desert. This has caused many speculations and some people are even angry.

The Americans are angry. A recent article in The Washington Post quoted the opinions of many U.S. investors that U.S. energy cooperation is a hot topic for Americans. Chinese people only enjoy the benefits of entering the U.S. market but set obstacles for U.S. investors.

In fact, since Obama took office, the Washington Post has had many dissatisfaction with its Chinese policy, especially its energy policy. The first solar energy was postponed without delay in Ordos. Naturally, it questioned the excellent target of Aussie's energy policy toward China. So what is the truth of the postponement?

The head of the first solar energy station in Beijing sent an e-mail clarification to the publication. “The feasibility study of this project has been completed and the two parties have made significant progress in cooperation. The first solar energy company will continue to implement the memorandum of understanding reached with Ordos City.” But at the same time, it also recognizes This year, the project has been impossible to start and it is expected that the project will not be completed until next year. Song Bosi once told this correspondent that “With the extensive experience of the first solar energy in this field, we can ensure that the project will start in June next year.”

With Song Bosi's leading position in the global photovoltaic industry, he will not say such unsure words. Considering the grand occasion when Obama visited China as a key cooperative project in November last year when he was visiting China, it is no wonder that the “Washington Post” will interpret it as a typical failure of a big country game.

Judging from the current trend of the project, there is no doubt that it will continue to perform the framework agreement. The problem is that the cost disadvantage that Americans have been worrying has increasingly become a reality – the person in charge of the management committee of the Hangjinqi New Energy Demonstration Zone told the reporter that “in the tendering of equipment for this project, it must be based on market laws.”

This means that it is impossible for First Solar to provide equipment supply while acquiring the right to operate the power plant. Despite this, Song Bosi expressed his willingness to find partners in China. However, for those angry Americans, these should have been made by American companies as gifts for exchange of equal value. Moreover, investment entities themselves are the leaders in global photovoltaic equipment manufacturing.

However, the biggest reason for delaying the start of the First Solar Ordos project is due to the unclear prospects for the solar market in China. In addition to the fact that the National Development and Reform Commission has not yet approved, the Hangjin Banner has also analyzed that its reason for the postponement of the postponement is that it is the first solar energy that has come out of doubt about the postponement of the benchmark power price in China's photovoltaic industry.

In mid-August, the participation of the 280 MW photovoltaic power plant concession bidding project held by the National Energy Administration confirmed the above doubts. Of the 135 tenders submitted by more than 40 companies, only one came from overseas companies. To a certain extent, this can be attributed to the lower price of labor to domestic companies in China. However, many successful bidders are state-owned enterprises, and their quotes have already fallen below the current PV cost price.

The investment subjects, including foreign companies and private enterprises, believe that the uncertainty in the on-grid price of photovoltaic power plants is the key to the direction of their investment. Without knowing the on-grid price, it is difficult for developers to evaluate the potential return on investment. Based on this understanding, the private enterprises participating in the bidding eventually abandon the short-handed handover with the central enterprises in the staking spot, but in fact it is also a rational market. behavior.

As the first solar energy Hangjinqi photovoltaic project clearly identified by the owner, it is not necessary to participate in this round of bidding. However, under the circumjacent market pattern, whether the project can be carried out as scheduled will remain doubtful. At the very least, it is truly worrying that the 4 GW total of 2GW can be successfully completed and the prospects for the global PV power plant laurel will be successfully planned. However, Hangjinqi did not seem to worry too much. They were obviously well-intentioned - even if the American investment projects ran aground, they still made up to 5GW of PV plans by 2025, and as early as the beginning of next year, they will start the first step. No owner tenders.