China's wind power, photovoltaic and other renewable energy industry re-welcome policy "gift package. ". Recently, the National Development and Reform Commission and other five departments jointly issued a notice on guiding and strengthening financial support to promote the healthy and orderly development of wind power and photovoltaic power generation industries (the notice) clearly, financial Institutions May, in accordance with the principle of commercialization, negotiate with renewable energy enterprises to extend or renew their loans, and issue subsidized authorized loans. Industry sources said that the circular focuses on the issue of funding subsidies for renewable energy tariffs and proposes a series of measures that will help some renewable energy enterprises that are temporarily experiencing difficulties to tide over the difficulties and alleviate cash flow pressure, it also provides an important guarantee for China's green and low-carbon development and the realization of carbon peak and carbon medium targets. In recent years, China's wind power, photovoltaic power generation and other renewable energy installed scale expanded steadily, power generation continued to grow, effectively supporting China's green and low-carbon and economic and social development. By the end of 2020, China had installed 934 million kilowatts of renewable energy generating units, an increase of 17.5 percent year-on-year. But affected by many factors, some renewable energy enterprises in recent years cash flow, production and operation difficulties. Among them, the enterprise reflects more is the electricity price subsidy funds in arrears. In order to ease the difficulties of renewable energy enterprises, the circular points out that enterprises with renewable energy projects already included in the subsidy list may apply for subsidy-authorized loans for the confirmed receivable of uncollected financial subsidy funds. All types of banking and financial institutions may grant grant grant grant-approved loans within a specified amount to qualified renewable energy enterprises. The amount of the loan, the term of the loan and the interest rate of the loan shall be negotiated by both parties. According to the circular, for renewable energy enterprises with high short-term repayment pressure but promising future development prospects, financial institutions may, in accordance with the principle of risk control, on the basis of independent consultation between the bank and the enterprise, and in accordance with the actual and expected cash flow of the project, to extend, renew or adjust the loan repayment schedule, term and other arrangements. "from the perspective of guaranteeing the quality of banks' assets, the Basel Agreement is quite strict about the extension and renewal of loans, " Lu Zhengwei, chief economist at Societe Generale Bank and chief economist at huafu securities, told people.com.cn, the circular makes it clear that, in accordance with the principle of commercialization, banks may extend or renew loans to renewable energy enterprises with high short-term repayment pressure but high prospects for development, which will help alleviate the pressure on enterprises after the expiration of their funds, to get longer-term financing support. In the view of Lu political commissar, at present, although renewable energy enterprises have obtained certain financial subsidies, but there is a certain time lag in the arrival of funds, prone to a funding gap. The circular makes it clear that financial institutions can determine the amount of loans at their own discretion, up to the ceiling of the amount of uncollected financial subsidy funds that the enterprise has confirmed to be receivable. This solves the problem of the time difference and alleviates the financing pressure on the capital of the enterprise. Everbright Securities recently released a research report that the "notice" first proposed the concept of subsidizing authorized loans, and that in the future enterprises are expected to invigorate the burden of accounts receivable arising from defaults on subsidies by applying for loans, issuing bonds, etc. , in order to ease the cash shortage, production and management difficulties and other issues. The circular emphasizes that enterprises'share of the interest cost of the subsidy right loans should be appropriately compensated through the issuance of green power certificates, and that enterprises should voluntarily choose whether or not to convert to parity projects on their own initiative in the light of actual conditions, and that in the case of voluntary conversion to parity projects, priority can be allocated funds, the loan amount and loan interest rate can be independently negotiated to determine. "By issuing green power certificates, we will make full use of the role of the market and increase financial support for renewable energy enterprises, " Lu said. Industry insiders said that encouraging enterprises to reduce the burden of interest sharing through the green power certificate transaction is conducive to resolving the concerns of enterprises, effectively promoting the implementation of the policy of subsidies to determine the rights of loans. Everbright Securities Research believes that, from financial institutions to solve enterprise subsidy defaults through subsidies-based loans, to the state to issue green power certificates to solve interest costs arising from loans, the circular sets up a way for financial institutions and the government to work together to solve the problem of overdue electricity price subsidies. "In the future, on the one hand, we should pay attention to the support of financial institutions for the subsidy-backed loans, as well as specific indicators such as the amount, duration and interest rate actually granted; on the other hand, we should keep track of the establishment and improvement of the national system for the issuance and trading of green power certificates, " the report said
