IEEE Power & Energy Magazine - May/June 2020 - 58

respect to the risk that PV power stations pose, the
government will strengthen supervision and management and formulate and improve the corresponding
policies and regulations.
✔✔ Continued implementation of the PV poverty-alleviation
policy: The government will introduce management
measures to increase PV development in economically
backward regions, support energy-development projects in poverty-stricken areas, and cooperate with departments to provide concessions on feed-in tariffs for
PV projects and provide high-priority subsidy payments
to help poverty-stricken areas reduce electric rates.

Technology
✔✔ Increased market share of monocrystalline silicon:

With production technology advancements, monocrystalline silicon's cost has declined, narrowing its
price difference against polycrystalline silicon and
increasing its market share.
✔✔ Application of passive emitter and rear cell (PERC)
technology: PERC is a compatibility technology that
can be superimposed on silicon wafers to improve solar cell capacity. Further, monocrystalline silicon wafers possess better superposition properties than polycrystalline silicon wafers, motivating major solar cell
manufacturers to gradually increase PERC production.
✔✔ Application of N-type double-sided modules: N-type
double-sided modules have better performance, pro-

viding significant technology and industrialization
improvements. This should help the production of Ntype modules to expand as well.
✔✔ Protection of intellectual property: China may have
greater difficulty incorporating foreign technological advances.

Enterprise
✔✔ Enterprise overhaul and reorganization: Because of

the decline and delay in PV subsidies, some small
companies with high operating costs and fragile capital chains have been affected. Hence, enterprises and
capital will be restructured or withdrawn; consequently, market concentration will increase, with the oligarchic effect becoming increasingly prominent.
✔✔ Reduction in enterprise production costs: Given
technological advances and industry integration,
the PV companies' production costs will be further
reduced. In addition, given the quota limits, the
enterprises face increased competition from industrial peers, motivating them to continue reducing
their expenses.
✔✔ Cross-sector enterprise development: Considering the
high profits from producing single products and the decline in PV subsidies, PV enterprises will vertically bundle by further expanding their business scopes, becoming
integrated across the upstream, midstream, and downstream of the PV industry.

Ensure the Same Targets

* Clear Targets
* Follow the Reform Principles of Electricity Price and Subsidy Rates
* Adopt a Gradual Price-Reform Implementation Path

Propose Designs for Prices
and Subsidy Rates

* Identify What Needs to Be Improved
* Optimize the Subsidy Mode Based on the Existing One
* Clear the Values and Costs of the Considered Renewable Energy

Impact Analysis

Stakeholder Consultation

Trial Implementation

* Analyze Consumers' Electricity Bills
* Defer the Investment Costs
* Consider the Sunk Costs

* Developers
* Power Enterprises
* Representative Consumers * Independent Third Parties

* Regional Pilot Projects
* Transition Between Market Access and the Market Exit

Extension

figure 6. The rate-making flowchart.
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ieee power & energy magazine	

may/june 2020
IEEE Power & Energy Magazine - May/June 2020

Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - May/June 2020
