5 Chinese government departments jointly released the incentive policy for alternative energy vehicle charging infrastructure during the 13th Five-year Plan (2016-2020), to combine the incentive with the promotion of alternative energy vehicle according to CCM, so as to further propel local governments to maintain the promotion vigour of alternative energy vehicle. CCM believes that this new policy will give an impetus to the industry development to hit a new high in 2016-2020.
Source: Bing
On 16 Dec., 2015, 5 Chinese government departments including the Ministry of Finance (MOF) and the Ministry of Science and Technology, jointly released the Notice about Incentive Policy for Alternative Energy Vehicle Charging Infrastructure and Promotion of Alternative Energy Vehicle (exposure draft). The central government will offer incentives to areas involved in large-scale promotion of alternative energy vehicle and construction of charging infrastructure, for the overall arrangement of constructing charging infrastructure locally.
Accordingly, the incentive standard is linked up with the local promotion of alternative energy vehicle. Based on 3 areas, key areas for air pollution treatment, central areas and other areas, the promotion targets and incentive standards are set. In addition, there are 2 conditions for each area to obtain incentives:
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To submit local supporting policy for developing alternative energy vehicle and charging infrastructure by the end of March 2016
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To ensure the openness of local alternative energy vehicle and charging infrastructure market - no barriers to be established for local protectionism
Compared to the 2013-2015 incentive policy released by MOF, CCM finds that this policy has 2 big changes:
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Detailed area division: indicator of "central areas' (= 5 provinces in total) is added and meanwhile Fujian Province is set as an independent area to specifically level up the promotion requirements
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Decreased incentives and further threshold set: incentive down from USD781-1,094/unit (RMB5,000-7,000/unit) in 2013-2015 to USD313-469/unit (RMB2,000-3,000/unit)
The down-regulation of incentives, for one thing shows the fine development of the alternative energy vehicle industry, which no longer needs the government's vigorous support as before, and for another thing reveals the government's confidence in the growth of social capital input into charging infrastructure field.
Incentive standard on alternative energy vehicle charging infrastructure by area in China, 2016-2020
|
Year
|
Key areas for air pollution treatment
|
Central areas (incl. Fujian)
|
Other areas
|
|
Threshold of incentive (= alternative energy vehicle promoted), unit
|
Incentive in total, million USD
|
Incentive (for excess alternative energy vehicle promoted)
|
Threshold of incentive (= alternative energy vehicle promoted), unit
|
Incentive in total, million USD
|
Incentive (for excess alternative energy vehicle promoted)
|
Threshold of incentive (= alternative energy vehicle promoted), unit
|
Incentive in total, million USD
|
Incentive (for excess alternative energy vehicle promoted)
|
|
2016
|
30,000
|
14.07
|
USD1.17 million for every increase of 2,500 units
Upper limit: USD18.75 million
|
18,000
|
8.44
|
USD0.70 million for every increase of 1,500 units;
Upper limit: USD18.76 million
|
10,000
|
4.69
|
USD0.38 million for every increase of 800 units;
Upper limit: USD18.76 million
|
|
2017
|
35,000
|
14.77
|
USD1.25 million for every increase of 3,000 units
Upper limit: USD21.88 million
|
22,000
|
9.29
|
USD0.85 million for every increase of 2,000 units;
Upper limit: USD 21.88 million
|
12,000
|
5.06
|
USD0.44 million for every increase of 1,000 units;
Upper limit: USD21.88 million
|
|
2018
|
43,000
|
16.13
|
USD1.48 million for every increase of 4,000 units;
Upper limit: USD25.01 million
|
28,000
|
10.50
|
USD0.94 million for every increase of 2,500 units;
Upper limit: USD25.01 million
|
15,000
|
5.63
|
USD0.47 million for every increase of 1,200 units;
Upper limit: USD25.01 million
|
|
2019
|
55,000
|
18.05
|
USD1.56 million for every increase of 5,000 units;
Upper limit: USD28.14 million
|
38,000
|
12.47
|
USD1.09 million for every increase of 3,500 units;
Upper limit: USD28.14 million
|
20,000
|
6.57
|
USD0.50 million for every increase of 1,500 units;
Upper limit: USD28.14 million
|
|
2020
|
70,000
|
19.70
|
USD1.72 million for every increase of 6,000 units;
Upper limit: USD31.26 million
|
50,000
|
14.07
|
USD0.56 million for every increase of 4,500 units;
Upper limit: USD31.26 million
|
30,000
|
8.44
|
USD0.70 million for every increase of 2,500 units;
Upper limit: USD31.26 million
|
Source: Government announcement & CCM
During 2016-2020, the provinces/regions/municipalities, will necessarily and actively choose to work with private capital, to thoroughly fulfil the planning and obtain incentives, according to CCM: "The local governments' support and the social capital's input will play a vital role in the continuously vigorous development of the alternative energy vehicle industry'.
If all provinces/regions/municipalities (=31 in total) get the incentives, the number of alternative energy vehicle will increase by 4.57 million units at least during 2016-2020, in accordance with the incentive standard. Together with the promotion of <500,000 units by 2015, it will reach the car parc (= number of vehicle registered) of 5 million units by 2020, which is a target set in the Energy Saving and Alternative Energy Vehicle Industry Development Planning (2012-2020). Specifically, the promotion of alternative energy vehicle will see a CAGR of 24% in key areas for air pollution treatment, 29% in central areas and 32% in other areas in 2016-2020, and their proportions in newly increased vehicles locally will hit 10%, 6% and 3% respectively.
If you are looking more for the charging infrastructure market in China, you could have a look at our product: China Li-ion Battery News.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.
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