How does the cancellation of preferential electricity prices in Inner Mongolia affect Photovoltaic ?

How does the cancellation of preferential electricity prices in Inner Mongolia affect Photovoltaic ?

Nov 15,2022.

UISOLAR PV-policy electricity price

Inner Mongolia has canceled the preferential electricity price policy for two months. What is the effect of this electricity price reform? The reporter conducted an investigation and interview a few days ago. During the interview, many people in the industry said that the cancellation of preferential electricity prices in Inner Mongolia is inevitable for its construction of an electricity market, which is conducive to the integration of electricity prices for strategic emerging industries with the market.

I. Force enterprises to save electricity

When the policy was first released, enterprises on the power generation side and power supply side were a little confused. Since the new policy involves the interests of multiple parties, it is hoped that the Development and Reform Commission of the Inner Mongolia Autonomous Region will fully consider the cost accounting of both parties, so as to alleviate the possible problems of new energy power stations during the windy season, influenced by the transaction price bottleneck.

From the perspective of the impact on enterprises with different electricity consumption, the production and operation of enterprises with small electricity consumption are basically not affected. Enterprises with large electricity consumption will have a limited increase in the production cost of enterprises and will not affect the continuous profitability of enterprises.

II. Whether it will affect photovoltaic electricity prices

It takes a long time for the market to settle into a stable new electricity price. At present, the overall impact of the new policy is still in the process of market reaction."The policy will not have much impact on the photovoltaic industry." one told reporters that most of the companies stationed in Inner Mongolia are poly silicon companies. In recent years, the price of poly silicon has been at a high level. The impact of material price fluctuations on the company is gradually diminishing. According to the latest data from Changjiang Electric Power Co., Ltd., every 10,000 tons of silicon materials will affect profits by 0.5-80 million yuan. Specifically, the impact on enterprises is less than 4%. Moreover, the electricity price of the new production capacity under construction has been fully investigated, and under the action of a series of long-chain mechanisms, it has basically no impact on photovoltaic manufacturers.

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