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The high cost of power generation has always been an important factor restricting the development of new energy in China. In order to guide and promote the sustained and healthy development of relevant industries and improve the market competitiveness of wind power, the State Energy Administration recently issued the Notice on the Demonstration of Wind Power Fair Price Access to the Internet, which calls for the promotion of the realization of wind power on the generation side at a fair price, and plans to carry out the demonstration work of wind power on the Internet at a national level. This means that wind power will be ahead of other new energy sources, such as photovoltaics, into the "era of parity".

During the Twelfth Five-Year Plan period, China's wind power installed scale grew rapidly, the development layout was continuously optimized, the technology level was significantly improved, and the policy system was gradually improved. Wind power has become the third largest power source in China after coal power and hydropower, and has entered the development stage of alternative energy sources from supplementary energy sources. However, economy is still an important factor restricting the development of wind power. Compared with the traditional fossil energy power, the cost of wind power generation is still relatively high, the demand for subsidies and policy dependence are strong, and the development of the industry is greatly affected by policy changes.

"In recent years, China's wind power development and utilization technology continues to progress, the scale of application continues to expand, the economy has significantly improved, some areas with better resource conditions have the technical conditions of zero subsidy access to the Internet." Relevant officials of the State Energy Administration said that the conditions for carrying out the demonstration work of wind power on-line at fair prices were basically mature.

In November 2014, the State Council promulgated the Strategic Action Plan for Energy Development (2014-2020). By 2020, wind power and coal-fired power will be on the same grid price, that is to say, the power generation side will be on the grid at a fair price. At the end of 2015, the National Development and Reform Commission promulgated the Notice of the National Development and Reform Commission on Improving the Policy of Land-based Wind and Photovoltaic Power Grid Benchmarking Price. For land-based wind power projects, the three resource areas before 2016 and 2018 will be reduced by 2 cents and 3 cents respectively, and the four resource areas will be reduced by 1 cents and 2 cents respectively.

"In recent years, China's renewable energy technology has made remarkable progress, and the cost has dropped considerably." Relevant officials of the State Energy Administration said that the goal of "by 2020, the price of wind power projects can compete with the local coal-fired power generation platform" was to send a signal to the industry that it must accelerate the pace of cost reduction through technological progress and make the industry get rid of dependence on policy subsidies as soon as possible. Judging from the current situation, it is expected that by 2020, if the problem of absorption can be effectively solved, the goal of wind power and photovoltaic parity will be achieved.

Zhu Ming, Director of the Department of New and Renewable Energy of the State Energy Administration, has revealed that the price of wind power in the first resource area has dropped from 0.51 yuan per kilowatt-hour to 0.47 yuan. After solving the power limitation, some areas have already met the conditions of fair access to the Internet.

This demonstration is undoubtedly to pave the way for the realization of the goal of 2020. The circular requires that the scale of demonstration project construction should be determined by the commercial power grid enterprises of the energy authorities of the provinces (districts, municipalities) and Xinjiang Corps, and not be restricted by the annual scale index. The scale of demonstration projects should be strictly limited in wind power red early warning areas. The scale of wind power fair price demonstration should not exceed 100,000 kW. The power tariff of the demonstration project is executed according to the local coal pole power tariff, and the green power certificate is not issued for the related power generation.

In order to ensure the demonstration effect, the Notice requires power grid enterprises to do a good job of grid construction matching with demonstration projects, and ensure that the matching grid delivery projects and wind power projects are put into operation simultaneously. After the completion of the project, it is necessary to sign a contract for the purchase and sale of electricity with wind power development enterprises in time. At the same time, it is necessary to fully tap the potential of system absorption, give priority to meeting the demand of near-by absorption, and ensure that the wind power level-to-price demonstration project is open to electricity.

Some insiders said that the current price and tax mechanism reflecting the environmental cost of fossil energy has not been established, and the environmental benefits of clean energy such as wind power can not be reflected. If parity is too fast, it will bring tremendous pressure to wind power enterprises.