Polaris solar PV net news: PV industry is semiconductor technology combined with the new energy demand of emerging industries of strategic importance, it is also an important field of international energy competition. In 2016, the PV industry in China continues the warming trend in the last year, the industrial output reached 336 billion yuan, an increase of 27%, good overall health. First, the industry continues to expand the scale. 2016 poly silicon productions from 194,000 tons, an increase of 17.5%; wafer production 63GW (GW, the same below), an increase of 31.2%, photovoltaic cell production is about 49GW, rose 19.5%, photovoltaic module production is about 53GW, and rose 20.7%, grid-connected PV system annual installed capacity reached 34.5GW, an increase of 127%. Production industry chain link accounted for more than 50% in the world, continues to top the world. Second, business conditions remained robust. Five polysilicon companies average gross margin over 20%, average gross margin over 15% top 10 components, part of the production margin even more than 25% of auxiliary enterprises, access to standard component average profit margin rose 3%, 31 public PV companies, 9 more than 100%. Third, industry development order become more reasonable. Industrial and information technology continue and the announcement of the fifth instalment of the PV manufacturing industry conditions list, received much attention in the implementation, industry standards linked with the credit credit cooperative strengthened, gradually standardize the development order. Facilitated by the Ministry of industry and information technology, intelligent manufacturing continued to promote PV companies, production automation, digital level increases, decreases in employment per unit of output. Merger and reorganization of enterprises willing to, market-led integration of resources to accelerate such as easy as new can successfully restructure LDK LDK, longi shares acquisition of Sun Edison (SunEdison) Malaysian factories. Four is the accelerating industrialization of advanced technology. Advanced crystal silicon battery technology development times break world record, black Silicon business velvet, and back passivation (PERC), and n type double, a efficient crystal silicon battery process technology industrialization accelerated, has built capacity over 10GW, Crystal and more Crystal battery average conversion efficiency reached 20.5% and 19.1%; polysilicon production process get further optimization, backbone enterprise production energy has declined to 80 degrees electric/kg of international advanced level. Five is the product costs continue to decline. Technological advances and economies of scale under the two-wheel-drive, advanced polysilicon production costs in China have dropped to 70 Yuan/kg, crystalline silicon solar module production cost dropped to 2.5/Watt, better resource area of PV power cost decreased to 0.65 Yuan/degree level, and closer to parity, low quality of photovoltaic products make a great contribution for the development of the global PV market. Six were “going out” was accelerated. “Along the way” strategy under the guidance of companies setting up factories abroad, has spread over more than 20 countries around the world, has been built outside the capacity exceeds 5GW, globalization of production was evident. In 2016, the wafer, cell and module exports about US $13.84 billion, down 11.3%, mainly under the influence of overseas enterprises to set up factories in China. Emerging markets such as India, Pakistan, Turkey, Chile exports significantly improved, exports to the traditional markets in Europe and America accounted for below 30%, further reducing the US and European “double reverse” effect.
In the industry to pick up at the same time, development of PV industry in China still has many problems. First, the manufacturing competitiveness is weak. Domestic support policies on the upstream support, enthusiasm for innovation and development of enterprises is not high, the industrial structural contradiction, high-end production capacity is still unable to meet the demand of the domestic market, compared with foreign advanced level remains the key process technology gaps, particularly in the core areas of photovoltaic equipment, new technology such as thin films, heterojunction develops slowly, innovative capacity needs to be improved. Second, the insufficient linkage related policies. The operation of the PV manufacturing industry conditions lack of linkage with downstream applications and other related policies. Parts are not strong, has not entered the standard notice of enterprise applications can still get subsidies, export tax rebates and other offers, mergers and reorganization of affected industry and the survival of the fittest, not conducive to the backward production capacity exit. Third, trade financing, financing your questions still outstanding. Under the influence of early industrial loans, financial institutions credit for photovoltaic manufacturing group there has been no improvement, enterprises are often difficult to get financial support from financial institutions, or taking over 6% or even 10% of the loan interest rate. Financing financing your restricts corporate investment in research and development, technological innovation and industrial restructuring and upgrading. Four domestic demand fluctuations. Fast frequency adjustment of electricity price caused stage volatility in the domestic market, does not match the pace of supply and demand, greater impact on the manufacturing industry, subject to the development of manufacturing industry of inertia, it is difficult to quickly adapt to market fluctuations. First half of 2016 in the aftermath of the Fiery “6.30”, the PV market in the third quarter a vacuum, leading to product prices, most of the enterprises in the red. Five is the application of the market system needs to be improved. Renewable additional funding a larger gap, PV subsidy arrears is serious, non technical factors including photovoltaic, PV costs significantly higher, accelerating the encroaching technological advances. PV annual plans for national and local development planning, uncoordinated, North-West of PV power seriously, distributed PV implementation site, tariff recovery difficult, project financing constraints, greatly affects the enthusiasm of distributed generation projects. Six is the increasingly complex international trade environment. Europe, Japan and other countries not to recognize China’s market economy status, Chinese PV “double reverse” should work more difficult. The European Commission has decided to continue to extend our photovoltaic products to take the “anti-dumping” measures. New US Government trade protection of the atmosphere is also more intense, increasing Sino-US PV “double reverse” reconciliation more difficult.
From the perspective of global renewable energy development, photovoltaic industry is still the main priority areas for national development, the United States, Europe, Japan and other countries in accelerating the layout of national PV industry and application, promote the manufacturing industries back to Thailand, India, Vietnam, and also use its cost advantage to make a difference in this area. In order to further standardize China’s PV industry development, promote industrial restructuring and upgrading, Department of industry and information technology, the next step will focus on the following: first, further strengthening PV policy linkage. Thoroughly implement the PV manufacturing industry standard terms and the further optimization of PV industry opinions on mergers and acquisitions market, enhance coordination between departments, promoting industry standards linked with the power plant construction, payment of subsidies and other policies, and to facilitate corporate restructuring through market mechanisms. Is the PV manufacturing industry to speed up the transformation and upgrading of the second. Integrated policy and funding resources, support in the industrial transformation and upgrading capital photovoltaic business critical technology development and industrialization, encourages PV enterprises to speed up the upgrading of intelligent manufacturing, improve core competitiveness of PV manufacturing, to continue publishing the roadmap of China PV industry development (2017) and lead the industry on health and sustainable development. Three global competitive advantage is to accelerate the expansion of China’s photovoltaic industry. The implementation of the national “along the way” strategy, use of PV industry development of export-oriented advantages, promoting photovoltaic companies accelerate international cooperation capacity and application process, actively explore emerging markets such as South America, zhongxiya, Africa, promote industry globally, and enhancing the industry’s global competitive advantage in China. Four is to promote photovoltaic applications diversification. Introduce new industrialization demonstration base for renewable energy assessment approach, promoting the application of distributed photovoltaic industrial park, play the role of green energy in the green zone, green plants. Exploration in sewage treatment plants, residential, stadiums, highways and other independent regional applications, promote the application of new energy photovoltaic system charging facilities for the pilot. Five is to optimize the environment for industrial development. Cooperate with related departments to promote photovoltaic subsidy system and mechanism innovation, and establish electricity price subsidies with the installed capacity and power cost adjustment mechanism. Guide social capital to reasonable financing, ease the financing of PV industry difficulties. Speed up the PV industry standard systems and photovoltaic applications, testing and certification of public service platform construction of case base.
Comprehensive analysis and forecasting, 2017 overall development of PV industry in China will remain stable, but faced increasing uncertainties both inside and outside. 2017 on the one hand of PV on-grid price adjustment installing, PV power station construction index advance overdraft caused by fluctuations in the domestic market, and the “double reverse” continuing market uncertainty caused by fermentation, would have greater challenges for sustainable development of manufacturing industry. Meanwhile, merger and reorganization of enterprises and integration will be accelerated, enterprises with technical, financial, management and industrial layout and other advantages will further seize market opportunities, promoting industry accelerate the survival of the fittest.
Original title: 2016 run PV industry in China