Polaris solar PV net news: from upstream of the photovoltaic industry since the excess capacity in the manufacturing side suffered difficulties, many manufacturing companies are increasingly shifting to lower station-side, especially production component of the listed company, involved in the photovoltaic industry are flocking to the PV power plant construction projects. However, starting from 2013, the entire industry through “cold winter” entered a period of recovery, companies restored to expand capacity. PV is one of the reasons of overcapacity, downstream power station has not yet been completed, but has accumulated excess inventories in the upper reaches. Judging from the current situation, manufacture end and power plant end entered a trend of steady development.
Jiangsu sumec group company (hereinafter “sumec”) beginning in 2006 entered the photovoltaic field, its main activities include shipbuilding, power and mechanical engineering, etc. After the production of PV modules by environmental low impact, sumec begun to extend the industry consolidated.
According to statistics, in 2013, sumec scale new energy business revenue of 1.7 billion yuan, year 2012 for 25% growth. Jiangsu sumec Group President Cai Jibo has publicly said that is sumec new energy business for the next three years of rapid growth.
Recently, this reporter Jiangsu sumec Group on the present situation and the future development of the new energy business, did a feature story on the Cai Jibo.
Reporter: on September 19, the Jiangsu sumec Group Japan Branch in Japan established in Tokyo, which means that sumec new energy business in Asian markets other than China, priority allocation of core resources to Japan. So, sumec group overseas solar markets at present is how to layout?
Cai Jibo: layout of our overseas market, in fact, is carried out according to the photovoltaic market demand because the market has been changing, from the most developed markets in Europe into the United States, we in Germany and the United Kingdom and the United States all have projects. And now to the Asian market, the first thing we see is Japan. In fact, a few years ago, Hui LUN sumec group solar energy (“Jiangsu Hui LUN solar technology Ltd”) has been Japan’s renewable energy market plan and launched a series of business plans, including solar energy equipment sales, service, and General Contracting services for renewable energy power station. Japanese environmental awareness is very strong, so for China in renewable energy products are concerned, it is a hungry market. Our company also put Japan viewed as most potential market.
Although Japan is the PV industry’s emerging markets, but their network configuration, the business environment is very mature, have the conditions for developing PV. Now Cuba is said to have also built two 40 MW of PV power plant, their adequate resources condition, but Cuba’s electricity grid is not yet perfect in fact, failed to support the photovoltaic market, they may be more suitable for the micro-grid off-grid and renewable energy use.
Reporter: in the overall manufacturing enterprises to downstream hydropower development in circumstances of the transformation, sumec has in the past two years has also invested in a number of power stations, then end with power of now sumec ratio is what happens at the end of it?
Cai Jibo: our plans and construction scale in domestic matches the company’s production capacity, which means that meet the needs of domestic power plants we manufacture. But if overseas markets, demand will exceed capacity of power station components in General. PV module overcapacity in previous years an entire industry into crisis, so we don’t want to do the manufacturing end too big now, and it is our consistent strategy.
Reporter: sumec-built power plant planning now what?
Cai Jibo: sumec over plans to build more than 300 megawatt power plant in the country this year, this is a real number. Earlier, there are many companies that want to build several GW, but virtually impossible to attain. This market is mainly through competition, flagging this year is more difficult and, in fact, a lot of companies got the flagging is not necessarily built power station. Our incorporation is expected to reach more than 300 megawatts this year.
For power stations, most of us still sells, its probably just dozens of megawatts. Key is to look at our whole capital matching, well-funded can hold much more, because the power plant is a very good asset. With proceeds of the company’s PV power plant construction, the product supply revenues accounted for 8% and development 15%, operating profit 35%, investment and transfer income accounted for more than 40%.
In addition, the companies in this industry to make breakthroughs in new materials, new technologies, including energy storage technology. Earlier this year, we have set up a new energy research Academy, specialized input sumec new energy product research and development. Critical equipment quality to a great extent determines the quality of power through these innovations, our design, layout of hydropower station under the same conditions of cost, enhancing 2%-5% capacity, this means that the plant’s power generation costs can be reduced by 3%-5%.
Reporter: September PV new deal, national force push again distributed photovoltaic projects, sumec distributed project layout situation?
Cai Jibo: it could be argued, then distributed projects is the direction of our future development of the company, is also being pushed by some. Distributed project investment in human resources are more important than terrestrial power station and refining operations. Now we have 100 MW of distributed project in Hefei, in addition to the Huaian, chuzhou, Dongtai, also has projects under construction.
Reporter: after the new deal down, including “spontaneous full Internet access, personal use, resale, encouraging asset securitisation”, several measures, is believed to help distributed PV financing problem, how do you think about it?
Cai Jibo: these can certainly play a positive role, but I think the industry’s understanding of these measures may take a little time, especially financial institutions need time to digest such a policy. Actually even PV after so many years of development, but domestic financial institutions still don’t have enough confidence, it is doing enough to finance innovation in our country. Banks hope to use companies as collateral, but PV enterprises should rely on its power plant stable earnings as collateral to obtain financing. Assets of the parent company are not unlimited, hard to use this to both plant resource mortgage, also placing greater burdens on business.
Reporter: for the PV industry, sumec-what’s next challenge? How do I adjust?
Cai Jibo: the domestic photovoltaic industry is currently facing a very big problem, is if it has reached the plant’s quality as a basis for safeguarding the income concept. Investors may focus more on power plant safety, quality, yield, including many owners are more concerned about the safety of the roof, fire prevention, building the reliability of equipment operation and so on. For example some machinery manufacturing enterprises and electronic business, they take into account the company’s precision equipment, quality of photovoltaic power generation, the roof slope angle is very strict. If PV vendor does not have such a concept, that in effect is a larger challenge to build power stations.
Secondly, it is technological innovation. Now more emphasis on the inverter, battery, and system of technological innovation, environmental analysis and research is often ignored. We are doing one thing, and that was divided into several regions of China, according to different environmental conditions were analyzed. Because the environment has implications for power generation equipment and systems are each climatic environmental factors for the equipment, power plant operation are not the same. So we will quantify the data mark and then fed back into the test on the standard methods, thereby improving environmental adaptability of key materials, ultimately optimizing algorithm for generating capacity. In Tibet, for example, and Hainan, the spectral energy distribution in both regions is slightly different, ultraviolet energy can be more than 8% in Tibet, and Hainan, basically 2%, in Tibet if we select the HF-efficient battery technology and components, then its higher power output than the rest.
In addition, how the costs of solar power or electricity costs to a minimum, but we need the whole industry to work together. Our path is to ensure component performance and improve reliability. Electricity generation data are all devices, including operations management, efficiency, and reliability of a best proof. We hope that through the operation and maintenance levels of these data mining, systems integration and operational efficiency of the photovoltaic power plant eventually can form a perfect corporate standards, or industry standards.
Original title: Cai Jibo: PV quality is fundamental to protect its gains