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.
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Ankur Gupta, Head Marketing & Communications
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