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Recommended 2019 PV Bid Project To Be Extended By One Quarter

May 28, 2020

     This year, the National Committee of the Chinese People's Political Consultative Conference(CPPCC), vice chairman of the National Federation of Industry and Commerce, Zhengtai Group Chairman Nan Shuanghui brought the proposal, mainly around tax cuts, mixed ownership reform, new energy industry policy and financial investment. In the new energy industry policy, Nan said, "China's photovoltaic new energy industry has a world-leading competitive advantage." At this time, how to support the cultivation of new energy technology innovation, policy guidance is very important. In particular, the application side demand forces the iteration and integration of innovative technology, for China and even the global green economy will be very helpful. The six proposals in Nansan's are related to the new energy industry policy. Among them, the most interesting is the "proposal to extend the 2019 PV auction power station networking period." "In the context of the outbreak's suppression of overseas market demand, the pull of domestic demand is particularly important, "                            Mr Nan said. At present, the relevant departments have not yet issued in addition to Hubei, other serious areas of the epidemic (such as Wenzhou) bid project slate policy. This will have a great impact on the domestic PV market demand and the operating conditions of photovoltaic enterprises this year. In the absence of subsidy support, it is expected that the country will have about 6GW of projects to abandon construction, a large number of photovoltaic enterprises will face inventory backlog, profit decline risk, not conducive to the smooth development of the industry. To this end, Nan Shuhui suggested, "the Ministry of Finance and other relevant departments, as appropriate, to consider the impact of the epidemic on photovoltaic grid-connected projects, reasonable access time and subsidy policy tilt." It is recommended that the 2019 bidding project be extended by one quarter, give the project more full construction time, ensure the project's grid-connected rate and the size of the domestic market, and enhance the confidence of enterprises in the construction of the bidding project. The proposals for thinking in areas such as tax relief and two-way reform for small and medium-sized enterprises have also been included in the proposal of Nansanhui this year. Nan proposed that loan interest be included in the scope of VAT deduction, the value-added tax rate will be reduced year by year, or 13%, 9%, 6% of the three-tier and reduced to two- and the manufacturing enterprises to reduce the property tax and land use tax on the production of housing. Continue to reduce the enterprise social security contribution rate, extend the small and medium-sized social security unit contribution exemption and mitigation preferential policy. The reform of mixed ownership is an important breakthrough in the new round of state-owned enterprise reform, and also an effective way to resolve the difficulty of financing private enterprises and the high cost of financing. Nan suggested that it should be clear that projects of heavy assets, strategic and other types should be controlled by state-owned enterprises, private capital and other social capital participation, and innovative light assets, rapid decision-making response and other types of projects, by private enterprises holding, state-owned equity participation and other mixed reform model. According to the Operational Guidelines for the Reform of Mixed Ownership of Central Enterprises, we will promote state-owned equity participation projects and establish an investment management model that will change from "management process" to "tube result" to management capital appreciation.