From：Serve (Xiamen) New Energy Co., Ltd. Release time：2019-01-15
Overview：Due to technological progress and large-scale production, the cost of new energy and electricity has been declining, and the market competitiveness has been greatly improved. It is unreasonable to continue to maintain high financial subsidies under such circumstances, which not only increases the financial burden, but also is not conducive to fair competition in the market. Since 2008, the global price of solar photovoltaic silicon cell modules has fallen by 80%, including 20% in 2012 alone.
In addition to cooling down the overheated new energy industry, alleviating the plight of excess industry and coping with the debt crisis, there are other reasons for the adjustment of the new energy subsidy mechanism in many European countries, including easing the pressure of public opinion, promoting fair competition and protecting domestic enterprises.
1. Relieving the Pressure of Public Opinion
In order to develop new energy, European countries generally adopt the incentive policy of "on-line electricity price". That is, power companies buy new energy and electricity at a higher price than the conventional price. The state compensates this part, and the final compensation is shared by ordinary users. With the expansion of the scale of new energy utilization, the burden of Finance and ordinary people is becoming heavier and heavier. There is a lot of complaint from all sectors of society about this reduction. New energy subsidies can ease the pressure of public opinion. For example, the annual subsidies of German government for new energy amounted to 18 billion euros in 2013. For this reason, the annual electricity tariff of each household increased by 100 euros in 2013, the national discontent rose immediately, and the industry also voiced opposition. Many people worried that the increase of cost would hit the operation of enterprises. The German Ministry of Environment also acknowledged the shortcomings of the fixed-price acquisition system and said it would fundamentally re-discuss renewable energy policies.
2. Promoting Fair Competition
Due to technological progress and large-scale production, the cost of new energy and electricity has been declining, and the market competitiveness has been greatly improved. It is unreasonable to continue to maintain high financial subsidies under such circumstances, which not only increases the financial burden, but also is not conducive to fair competition in the market. Since 2008, the global price of solar photovoltaic silicon cell modules has fallen by 80%, including 20% in 2012 alone. Since 2008, the price of wind turbines has fallen by 29%. In areas with better wind resources and access conditions, the price of wind power on the grid has been able to compete with new coal-fired power, such as Australian wind power without subsidy, and with new coal-fired power plants on the cost of electricity. Germany, Italy, France, Spain and the United Kingdom, the five major electricity markets in Europe, are expected to achieve parity in large-scale terrestrial photovoltaic power plants starting in 2014.
3. Protecting Domestic Enterprises
To some extent, the adjustment of new energy subsidy mechanism in European countries can be regarded as a trade protection measure, which can suppress foreign products, protect domestic enterprises and avoid domestic subsidies being enjoyed by foreign enterprises. After several years of rapid development, China has become a major producer of new energy equipment. For example, China's solar cell production accounts for nearly 50% of the world's total, of which more than 90% is used for export. As the largest photovoltaic installed area in the world, Europe naturally becomes the most important export market of photovoltaic products in China. At present, China's photovoltaic products account for about 60% of the EU market share. In this case, a large part of the high subsidies for photovoltaic power generation actually go to Chinese enterprises, and domestic enterprises do not enjoy much subsidies. In addition to reducing new energy subsidies, the new policies adopted by many European countries have different degrees of protectionism. For example, the Italian new policy clearly points out that if 60% of photovoltaic products are purchased from European Union countries, the subsidies will increase by 10%. These policies will undoubtedly reduce the demand for foreign products and expand the demand for domestic products. The demand for products objectively plays a role in protecting domestic enterprises.
About Serve Energy
Serve (Xiamen) New Energy Co., Ltd. is a Chinese manufacturer of Low Ballasted Aluminum PV Mounting System with independent intellectual property rights. Serve Energy specializes in the research and development, production, sales and services of solar products, such as affordable cost-saving BIPV mounting system wholesale, affordable high convention HDG PV mounting system, adjustable aluminum PV mounting system from China, low ballasted aluminum PV mounting system from China.