Recently, the Henan Provincial Development and Reform Commission released a notice encouraging the development of photovoltaic power plants across 18 cities in the province. After reviewing the details, several key points have emerged that are worth noting.

First, the construction of photovoltaic power stations in Henan is currently not subject to the national energy targets set by the National Energy Administration. This flexibility could potentially boost local PV projects. However, while many companies see this as a positive step, they also express concerns about the actual implementation of the policy. The National Energy Administration has only allocated 750 MW of capacity for the province, which means competition remains intense. Some industry insiders suggest that the new policy may primarily benefit the PV sector rather than significantly accelerating project development.

Additionally, the provincial power company has yet to finalize its review process for grid connection plans. As of July 15, no progress had been made on the 2014 PV projects, leading to a temporary halt in developments. There are also disagreements between the provincial government and the power company over how to allocate the limited 750 MW capacity. Without coordination, many projects risk being delayed or abandoned, raising concerns among local developers.

Second, to promote distributed generation, the provincial government introduced a mandatory ratio of 2:1 for distributed and ground-mounted projects. While this aims to encourage balanced growth, some cities face challenges due to lack of suitable land or rooftop space. Many companies favor ground-based projects, but if the required ratio isn't met, they may be unable to qualify for state subsidies, creating uncertainty in the market.

Third, the policy states that projects connected to the grid first will receive priority in receiving national indicators. However, in practice, the provincial power company refuses to approve projects outside the allocated quota, causing delays and inefficiencies in project execution.

Lastly, projects that secured preparatory permits from 2013 to 2014 will be prioritized for inclusion in the current year’s plan. This has created excitement among some investors, but others remain cautious, waiting for more clarity and stability in the policy environment.