solar energy – CRI Report

Analysis on Status Quo and Policies of China Photovoltaic Power Generation, 2018

admin — Mon, 25 Jun 2018 02:57:38 +0000

According to the National Development and Reform Commission, the Ministry of Finance, and the National Energy Administration, the standard on-grid power prices of photovoltaic power station newly put into running will decrease by 0.05 CNY/kWh. Ordinary photovoltaic power stations except those connected with the grid before May 31 will no longer obtain subsidy this year. The subsidy policy for distributed photovoltaic power generation has also been tightened with an annual upper limit of 10GW.

This policy accelerated the decline of photovoltaic industry subsidy, and photovoltaic enterprises cannot count on subsidy any longer. Many photovoltaic enterprises plan to cut their staff and production. CRI holds that the reduction of government subsidy is not a bad thing. After all, no industry’s growth depends on subsidy. The turning point of the photovoltaic industry is about to come with mergers and acquisitions.

The aforesaid “5.31 New Policy” is called as “the tightest policy for the photovoltaic industry” in the history.

In recent years, excessive reliance on government subsidy has become common in the industry. According to China’s Renewable Energy Law, grid-connected generation by renewable energy is encouraged. China has prioritized the development and utilization of renewable energy in the development of energy development and set the volume target and taken measures to promote the establishment and development of the renewable energy market. Institutions and individuals are encouraged to install solar energy utilization systems such as solar energy photovoltaic power generation system.

Since 2006, a large number of private enterprises have set foot in the field of photovoltaic power generation. At the very beginning, the cost was 4 to 5 CNY/kWh with high subsidy. However, the cost per kilowatt on the market was just a few cents. The government made great efforts to boost new energy development. At present, the cost per kilowatt is CNY 0.4 to 0.5,, 1/10 of the previous one. The cancellation of government subsidy has such a great impact on the photovoltaic industry that many enterprises may cut production and even go bankrupt but it is beneficial to the industry development.

Data shows that from 2015 to 2017, the total installed capacity rised rapidly from 0.86GW in 2010 to 77.42GW in 2016, and the newly-added installed capacity in 2016 was 34.54GW. China ranked top in the world in both total and newly-added installed capacity of photovoltaic power generation. Because of the on-grid power price adjustment and other factors, the market size of photovoltaic power generation experienced rapid expansion in 2017 with newly-added installed capacity of 53.06GW and total installed capacity of 130.25GW. From Jan. to Apr. 2018, newly-added installed capacity reached 8.75GW.

In the first half of 2016, photovoltaic power resources abandonment was a serious problem in Northwest China. A total of 3.28kWh, about 19.7%, was abandoned. Xinjiang and Gansu met more difficulties in photovoltaic power generation, with abandonment rate of 32.4% and 32.1% respectively. In the first quarter of 2016, the abandonment rate in Xinjiang even reached 52%. In 2016, the average abandonment rate in Northwest China was up to 20%. In 2017, about 10 billion kWh photovoltaic and wind power was abandoned in Inner Mongolia. In the west of Inner Mongolia, 7.1 billion kWh wind power was abandoned, with a proportion of 17%, and 400 million kWh photovoltaic power was abandoned, with a proportion of 11%.

China’s photovoltaic industry subsidy mainly comes from the government. However, the government also has a financing gap. By the end of 2017, the gap in renewable energy subsidy had reached CNY 100 billion. Therefore, the market regulation policy for the photovoltaic power generation was significantly changed. Industry transformation must be made through technological reform when subsidy is not available.

As regards to China’s photovoltaic power generation, the newly-added installed capacity has ranked top in the world for 5 consecutive years, and the total installed capacity has ranked top in the world for 3 consecutive years. With global-leading innovations and breakthroughs in photovoltaic technology, China has built a complete industry chain. And Photovoltaic power generation has played an important role in energy transformation.

https://www.cri-report.com/energy-chemicals-energy-solar-photovoltaics/889-3107-research-report-on-china-s-photovoltaic-industry-2018-2022.html

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Hot Spots in China’s Photovoltaics Market, 2017

Yuwenhao — Thu, 27 Jul 2017 01:57:01 +0000

Photovoltaics market was sizzling in the first half year of 2017, hotter than the temperature of a summer day. Several hot sectors are as follows:

1 Photovoltaics Project Investment

It was generally believed that before fair price was set for solar electricity, the 11GW installation of Jun, 2016 and 22GW new installed capacity of the first half of 2016 were unsurpassable.

However, new records created in 2017 was 13.15 GW installation of Jun and 24GW new installed capacity of the first half year

2 Distributed Photovoltaics Project Investment

Due to “Bright Project” started in 2002, “Golden Sun Project” started in 2009, various subsidies given by provincial governments after ““Eight Real Estate Market Regulation Measures” was published, new installed capacity of distributed photovoltaics during 15 years was 10.32GW by the end of 2016.

In First half of 2017, new installed capacity of distributed photovoltaics was 7GW. It is estimated that it will reach 7GW in the last half year and 14 in the whole year, over tripling that of 2016 and exceeding the capacity of the past 15 years.

3 Household Photovoltaics Project

It is preliminarily estimated that new installed capacity of household photovoltaics in 2017 has septupled YOY. Double is not a problem, we almost triple the overall installation capacity!

4 Upstream Manufacture Industry Expansion

The heat of downstream is passed to the upstream.

According to specialist, production of silicon materials will expand for over 20% and production capacity of components will probably reach 90GW by the end of the year.

5 Export Market

American market increases its procurement volume for “US Section 201”. Surging market in India becomes the largest export destination of Chinese photovoltaics products. Many exporters say they have many export orders in hands. In a word, export market is in full swing.

Reference:

Research Report on China Polysilicon Industry, 2017-2021

Export to emerging markets like India, Turkey, Chile and Pakistan significantly increased while that of occident traditional markets decline to below 30%.

The post Hot Spots in China’s Photovoltaics Market, 2017 first appeared on CRI Report.

Who Supplied Global Photovoltaic Market in 2016

Yuwenhao — Mon, 10 Jul 2017 08:08:52 +0000

At present, China is the largest polycrystalline silicon producer in the world with GCL-Poly being the market leader. However, in 2016, Wacker-Chemie (Germany) and OCI (South Korea) dominated the world’s second and third supplier positions in this field.

The battle of photovoltaic trade between China and America is not over. Anti-dumping tariff has already caused a loss of American polycrystalline silicon producers and the two giant Suniva and SolarWorld still cannot avoid bankruptcy.

Photovoltaic module and battery market remains diversified. Market share of the top ten manufacturers remains stable though the ranking has changed for some of the firms have went bankrupt while some of them moved up. In contrast, global inverter market has showed an active merger trend due to the driving force of growing large companies.

At present, most of the world’s largest photovoltaic battery and module manufacturers establish factories in foreign countries in order to reduce import tariff, take advantage of cheap labor force and to enjoy local tax preference, therefore these products are manufactured in many different countries.

In 2016, share of thin-film module manufacturer FirstSolar and SolarFrontie (Japan) accounted for only 4.6% in the global photovoltaic module market, showing a decline compared to 5.7% in 2015.

Reference:

Research Report on China Polysilicon Industry, 2017-2021

Export to emerging markets like India, Turkey, Chile and Pakistan significantly increased while that of occident traditional markets decline to below 30%.

The post Who Supplied Global Photovoltaic Market in 2016 first appeared on CRI Report.