New energy vehicles, carrying the dream of China's "curve overtaking," have recently become a major topic of discussion. Although the Ministry of Industry and Information Technology and other relevant departments have not officially responded, industry insiders have confirmed that the new energy vehicle integration policy, originally set to take effect in 2018, has been delayed by one year. While the 8% new energy point requirement for 2018 has been removed, the targets for 2019 and 2020 remain at 10% and 12%, respectively.
Cui Dongshu, Secretary-General of the National Passenger Car Market Information Association, noted on September 7 that many car companies are still unprepared for the transition. He believes that extending the policy by a year will give manufacturers more time to adapt. A longer buffer period is beneficial for both enterprises and the market, allowing for a smoother shift toward new energy technologies.
However, some experts disagree. Yin Chengliang, Deputy Dean of the Automotive Engineering Research Institute at Shanghai Jiao Tong University, argues that delaying the policy could harm China’s first-mover advantage in the new energy sector. Su Hui, Vice President of the China Automobile Dealers Association, also emphasizes that the double-point system should not be postponed further. According to him, the sooner the policy is implemented, the faster companies can adjust and benefit from its push toward new energy development.
The "double-point" system, introduced through the "Interim Measures for the Parallel Management of Enterprise Average Fuel Consumption and New Energy Vehicle Points (Draft for Comment)" issued by the Ministry of Industry and Information Technology last year, represents a significant regulatory shift. Unlike previous incentive-based policies, this system introduces stricter requirements. If companies fail to meet the standards, they may face penalties such as suspension from submitting vehicle catalogs or halting production of traditional models.
For example, companies producing over 50,000 vehicles annually in China must meet new energy vehicle point ratios of 8%, 10%, and 12% from 2018 to 2020. Pure electric vehicles earn between 2 to 5 points depending on their range, while hybrid vehicles with a range of over 50 km earn 2 points. This means that a company like Volkswagen, which sells 3 million cars in China, would need to accumulate 240,000 new energy points in 2018—equivalent to selling at least 48,000 pure electric vehicles or an equivalent number of hybrids.
If a company cannot meet the requirements, it can buy surplus points from others, but these points cannot be carried forward. Failure to comply could lead to severe consequences, including restrictions on traditional vehicle production.
Cui Dongshu pointed out that although China has established a relatively complete support system for new energy vehicles, the focus has largely been on encouragement rather than sustainable development. With falling oil prices, demand for new energy vehicles has weakened, and companies lack strong incentives to invest in the technology.
To address this, many foreign automakers are now partnering with Chinese brands that already have experience in new energy vehicles. For instance, Volkswagen and Ford are collaborating with Jianghuai and Zhongtai, while the Renault-Nissan Alliance is working with Dongfeng. These partnerships are driven by the pressure of the double-point policy, which is seen as a key driver for accelerating the transition to new energy vehicles.
Despite the delay, Cui believes the pace of transformation will not slow down. However, concerns remain about whether foreign companies might gain too much control over new energy technologies in joint ventures. Wang Binggang, leader of the national new energy vehicle innovation project team, warned that without proper guidance, independent brands could end up producing only low-end products again.
On the other hand, Chinese domestic brands like BYD, Geely, and SAIC are better positioned to meet the new energy point targets. Their ability to generate surplus points makes them attractive partners for foreign companies looking to fulfill their obligations. This could create opportunities for these brands to regain market influence and become key players in the new energy vehicle points market.
Cui acknowledges that while some independent brands are making progress, most still lack the technological depth needed to compete with foreign counterparts. The current reliance on restricted city sales and weak consumer demand due to low oil prices remain challenges.
In his view, the long-term direction of China’s new energy vehicle development remains unchanged. Automakers should focus on strengthening technical research, enhancing industrial cooperation, and accelerating cross-border integration. By doing so, they can build a new collaborative ecosystem, drive industrial upgrades, and achieve sustainable growth.
Commercial And Industrial Energy Storage
Commercial and industrial energy storage refers to the use of battery systems, flywheels, and other energy storage technologies in commercial and industrial settings to store electrical energy for later use. This practice is gaining popularity due to its potential benefits, such as reducing peak demand charges, improving grid reliability, facilitating the integration of renewable energy sources, and enhancing energy efficiency.
Benefits
1. Demand Response: Helps businesses manage peak load periods by shifting energy usage to off-peak times, reducing costs.
2. Renewable Energy Integration: Stores surplus energy generated from wind or solar sources for use when production is low.
3. Grid Reliability: Provides backup power during grid outages and helps stabilize the grid by smoothing out fluctuations in supply and demand.
4. Energy Efficiency: Enables better management of energy consumption, potentially reducing overall utility bills.
5. Resilience: Increases building resilience against power outages by providing local energy storage capabilities.
Challenges and Considerations
1. Cost: While the initial investment can be high, the long-term savings and operational flexibility can justify the cost over time.
2. Environmental Impact: The environmental impact of different storage technologies varies. For instance, lithium-ion batteries have concerns related to resource extraction and disposal.
3. Safety: Proper handling and disposal of batteries and other components require adherence to safety guidelines to prevent accidents.
4. Regulatory Frameworks: Different regions have varying regulations regarding energy storage systems, affecting their implementation and operation.
Cabinet type batteries offer a versatile tool for businesses to optimize their energy use, enhance sustainability, and improve grid stability. As technology advances and costs decrease, these systems are expected to play an increasingly important role in the transition towards more sustainable and resilient solar power system.
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