Photo Voltaic Industry: An Opportunity for Economy of China: Ken Research
Ken
Research announced its latest publication on, “Research Report on Photovoltaic Industry in
China, 2016-2020”
which provides detailed information on the current market trends in the
Photovoltaic Industry in China. In addition, the publication also includes the
information regarding current scenario and challenges faced by the industry. It
also provides Insights regarding Government policies and the suitable measures
to enable the industry to grow and develop.
Chinese Government is launching a series of national policies
and regulations to actively promote solar photovoltaic (PV) industry R&D,
production and application. Stimulated by the domestic policies and the
international market, China’s solar Photo Voltaic industry developed rapidly
and has made a significant impact on the world’s renewable energy development
and solar PV industrial sector.
China
became the world's largest producer of photovoltaic products in 2007 with the
export value of USD 2,838 million. In 2014, the total import and export value
of Chinese solar photovoltaic products was USD 18.28 billion, increasing by
15.09% YOY. Among that, the export value was USD 14.41 billion, increasing by
17.27% YOY; the import value was USD 3.87 billion, up by 7.62% YOY.
China’s solar PV industry has developed
rapidly over the past ten years, turning Yingli Solar, Changzhou Trina Solar
and others into PV industrial giants. Among the world’s top 15 PV cell
industries in 2006, there were four Chinese Mainland enterprises while, by
2012, six Chinese enterprises were listed among the world’s top 10 enterprises.
In 2012, the capacity of Chinese PV cell packs was about 23 GW, occupying 58%
of total global capacity. Some of the top company contributing to the industry
growth is as follows:
TOP
COMPANIES IN SOLAR PV INDUSTRY IN CHINA
|
COMPANY |
PRODUCTION |
|
SunTech Power |
50MW |
|
Yingli Solar |
600MW |
|
Yunan Semi-conductor
Power Plant |
2MW |
|
Goufej Green Energy
Source |
1MW |
|
Shaghai Poly Vision
Energy Science& Technology |
5MW |
However, the development of
China’s solar PV industry still faces several challenges, related to its surplus capacity and the
deteriorating international trade environment, an under developed domestic
market and problems such as, the vicious competition between enterprises,
financial issues such as loan withdrawing and stint loans by banks, and business
triangle debts. In addition, lack of unified coordination and planning regarding
PV power generation and power grid construction, and scarcity of urban land for
PV installation in areas where cities and population are expanding.
Another issue is that, though PV development seems a huge success in
China, all of the players involved are only investing in solar cell production
and solar modules assembling. Actually, PV cell and PV module are only two
segments of the whole PV industrial chain. A complete PV industrial supply
chain is shown:
PV INDUSTRY SUPPLY CHAIN Government subsidy to PV electricity generation in Europe stimulated the fast growing of the whole industry. As other segments, step 5 and step 6 in the supply chain used to be profitable. However, as more and more manufacturers got involved, majorly from China, competition became so intense that margin kept shrinking. Despite of this, China manufacturers kept expanding capacity. Thus leading to unbalance in PV development in China: at the beginning of the chain, China barely has capacity to produce enough crystalline silicon to meet the demand from its solar cell fabrication; at the end of the chain, China still do not have a grown-up market that can consume that many solar cells produced.
As the whole supply chain consists of
upstream (silicon mineral, poly-silicon), midstream (wafers), and downstream
(solar cell, modules and installation) business. Since the downstream is so
congested with Chinese manufacturers, it is thus advisable to seek opportunity
in other area in the whole supply chain and pay more emphasis on R & D and
explore those areas with higher technology requirement and thus receive higher
profit.
However,
according to the International Energy Agency, policies for the development of
the PV industry include Feed-In Tariff (FIT), tax credits, investment funds,
capital subsidies, the Green Electricity Scheme, the Renewable Portfolio
Standard (RPS) and many more, providing important motivation for development of
China’s solar PV Industry. In addition to government support and policies.
Thus, it is advisable to introduce
long-acting, feasible distributed PV power feed in tariff policies to partition
the grid, aiming to create large grid-access PV power stations and distributed
PV power generation, Further, in order to expand the international market they
must grasp opportunities by taking advantage of the foreign economic
assistance, technological assistance and other opportunities to put PV products
on the foreign assistance list .And an efficient management of land, thus
enabling prioritized development so that
PV projects can enjoy preferential land supply and PV companies can make
structural upgrades to their production capacity and should aim at being cost
efficient . In addition, establish a market access mechanism and an integrated,
innovative financial system.
To know
more, click the link below:
Related
Reports:
https://www.kenresearch.com/energy-and-utilities/clean-technology/hydropower-romania-market/41322-103.html
Contact:
Ken
Research
Ankur Gupta, Head
Marketing & Communications
+91-124-4230204
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