Photovoltaic power generation: private enterprises have opportunities but not many

“The good time for photovoltaic power plants has arrived.” On September 12, Meng Xianyu, vice chairman of the China Renewable Energy Society, pointed out in a keynote speech at the “Johnson Solar Photovoltaic Power Generation Project Investment Briefing Session”, while distributed photovoltaic power generation It is an area that can be focused on development.

Meng Xianyu said that the reason for the above prediction is that this year, the state has given good policy support to the total target of photovoltaic power generation, on-grid electricity price and price mechanism. With the basic improvement of policy support and the gradual improvement of support, the photovoltaic situation has undergone major changes.

However, PV companies say that both large-scale power generation projects and large-scale power station projects require large amounts of money. Although a series of favorable PV policies have been introduced since March this year, there are still difficulties in financing PV projects.

Photovoltaic power plant opportunities:

"Not too long, not too much"

In the past two years, China's PV industry has experienced a survival crisis, with half of the companies shut down and most of them losing money. Among them, there are reasons for the implementation of “double opposition” in countries such as Europe and the United States, but the most important reason is the production of photovoltaic modules by PV companies alone, resulting in overcapacity and a single product line.

In order to reverse the grim situation of the photovoltaic industry and promote domestic demand growth, the state has introduced a series of favorable policies to support photovoltaic stability and development. Since the beginning of this year, the National Development and Reform Commission and the Energy Bureau have proposed to build a distributed photovoltaic power plant on a large scale. It plans to build 10 billion watts a year after the 12th Five-Year Plan and 15 billion watts a year during the 13th Five-Year Plan period.

On August 26, the National Development and Reform Commission issued a document stating the subsidy policy for electricity price per kWh (kWh) of 0.42 yuan, and guaranteed the subsidy time of 20 years. The National Development and Reform Commission also issued subsidies for ground power stations and distributed subsidy standards. It can be seen that the country hopes that large-scale photovoltaic power plants and distributed power plants will be opened at the same time.

“Photovoltaic electricity price subsidies are declining year by year. According to the plan, distributed power generation subsidies are only two or three years. If the user-side distributed power generation achieves parity online by 2015, the government will no longer subsidize.” Meng Xianyu said. The National Development and Reform Commission and countries around the world expect large-scale ground power stations to achieve parity online access on the power generation side around 2020, and then no longer enjoy subsidies.

The data shows that the scale of PV applications in China is still small, and the scale of photovoltaic power generation is only 1% of China's power generation capacity, while Germany has reached 7%. Meng Xianyu suggested that enterprises should make full use of existing policies and actively invest in renewable energy power generation projects. "This time will not be too long, nor too much."

How to seize private enterprises:

“Transfer the focus from component production to photovoltaic engineering construction”

New opportunities are coming, and PV companies are transforming to seek vitality.

On August 22, China Merchants New Energy, Guodian Photovoltaic, State Grid Nanrui, Guodian Mengdian New Energy, Poly New Energy and China Electronics Technology Group 48th Institute jointly established the “Photovoltaic Green Ecology Cooperation Organization” and signed the strategic cooperation of the six parties. The framework agreement plans to build a solar power plant with a total installed capacity of 5 GW in the next five years. According to the cooperation expectation, the total installed capacity of solar power plants in 2013, 2014 and 2015 will be 400MW, 600MW and 1GW respectively.

"From the perspective of power station developers, large-scale ground power plants are mainly the market of state-owned enterprises." Meng Xianyu said that the policy was unclear in the past few years, photovoltaic power generation was difficult to access, the price mechanism has not yet formed, the development risk is high, and state-owned enterprises have better resistance. Risk capability and financial strength, so I entered the development of large-scale ground construction stations.

Because of the small, scattered, complicated procedures and development difficulties, the distributed power station believes that private enterprises are keen to enter this market.

As a representative of private enterprises, Sha Xiaolin, chairman of Johnson & Johnson Enterprise Group, is difficult to hide his "ambition" in distributed photovoltaic projects. “The large-scale construction of distributed photovoltaic power generation projects has come to fruition.” Sha Xiaolin said that the state has imposed restrictions on the expansion of photovoltaic raw materials and components, but it has given unprecedented support to photovoltaic power generation applications. According to the country's calculation of the photovoltaic power generation subsidy policy, the photovoltaic power generation project is a project with stable income and good return on investment.

Sha Xiaolin revealed that Johnson & Johnson has begun to shift its focus from component production to photovoltaic engineering construction.

According to Sha Xiaolin, Johnson & Johnson has extensive experience in engineering construction. For example, as early as 2008, a 3MW ground power station was built in Jiuquan, Gansu, and a 1.05MW photovoltaic building integration project was built in Nantong Rudong. At the same time, in cooperation with foreign companies, more than 20 ground and rooftop power stations were built in many countries.

Sha Xiaolin said that in 2014, 150-200MW distributed photovoltaic power plants will be built in two to three state-level development zones. In 2016, the company reduced the annual power generation of distributed photovoltaic power plants to 500 million kWh, and the annual power generation revenue was 500 million yuan.

What are the difficulties:

“The loan threshold is high and the loan term does not match”

However, in the eyes of some industry insiders, the financing of distributed power generation projects has yet to be resolved.

"Policy is like the rules of the game. Capital is the game chip. There is no chip, you can only watch." Jing Jing, global brand director of Jingke Energy, said that only the active influx of capital market can initiate the innovation of photovoltaic business model, and the photovoltaic market will Really broke out, but the current financing of photovoltaic projects is difficult.

“Banking lending rates are generally high. At the same time, the threshold for loans is also high. When applying for bank loans, PV companies need to provide additional equal guarantees for loan amounts in addition to preparing capital, according to requirements. And only a few banks in China can provide Long-term loans of 10 years or more, the average commercial bank is only 5 years long, which is inconsistent with the operating period of photovoltaic power plants for 25 years.” Qian Jing said that commercial banks are not the financing targets of photovoltaic power station projects.

Qian Jing suggested that the state should allow commercial banks to appropriately relax the loan period for renewable energy projects, such as photovoltaic financing, and open long-term loans of 10 or more years. In terms of PV financing interest rates, special events are set up to reduce loan interest rates, especially for private enterprises, thereby reducing the financing costs of project development.

When the bank financing channel is not smooth, Sha Xiaolin said that Johnson & Johnson plans to seek investment funds, listed companies, central enterprises, large state-owned enterprises and large-scale private enterprises to form joint ventures to jointly develop distributed photovoltaic power generation projects.

Automobile Engine Parts

Car engines are designed around sealed, resilient metal cylinders. Most modern vehicles have between four and eight cylinders, though some vehicles can have as many as sixteen! The cylinders are made to open and close at precisely the correct time to bring in fuel to combine with the spark for burning internally, and to release the exhaust gases produced. While there are several components on an engine, we`ve compiled a list of the most essential car engine parts and their functions, that power your vehicle. Refer to the diagram to locate where they reside on your engine.

Engine valve – This is the very core of the engine. Often made of aluminum or iron, it has several holes to contain the cylinders as well as provide water and oil flow paths to cool and lubricate the engine. Oil paths are narrower than the water flow paths. The engine block also houses the pistons, crankshaft, camshaft, and between four and twelve cylinders-depending on the vehicle, in a line, also known as inline, flat or in the shape of a V.

Pistons – Are a cylindrical apparatus with a flat surface on top. The role of the Piston is to transfer energy created from combustion to the crankshaft to propel the vehicle. Pistons travel up and down within the cylinder twice during each rotation of the crankshaft. Pistons on engines that rotate at 1250 RPM, will travel up and down 2500 times per minute. Inside the piston, lie piston rings that are made to help create compression and reduce the friction from the constant rubbing of the cylinder.

Connecting Rod – Attached to the engine through cylinder bolts, sealed with the head gasket. The cylinder head contains many items including the valve springs, valves, lifters, pushrods, rockers, and camshafts to control passageways that allow flow of intake air into the cylinders during the intake stroke as well as exhaust passages that remove exhaust gases during the exhaust stroke.
Timing Belt/Chain – The camshaft and crankshafts are synchronized to ensure the precise timing in order for the engine to run properly. The belt is made of a heavy-duty rubber with cogs to grasp the pulleys from the camshaft and crankshaft. The chain, similar to your bicycle chain wraps around pulleys with teeth.

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