Rise and worry in photovoltaic power

Polaris solar PV net news: China PV industry is reshaping the pattern represents the new power of PV industry of jinko, longi shares, firms such as Huawei, beyond or close quickly in a short time segments of the early leader.

First quarter of the year, jinko solar module shipments of 1.6 gigawatts, 313.3 million yuan in net profit, an increase of 514.31%, as the world’s single-season champion for the first time. In the field of PV inverters, cross-border admission of Huawei, in only 3 years, will become the first in the industry. Has been preoccupied with the upper reaches of the longi shares in first-quarter net profit of 261 million Yuan, an increase of 417.59% as the world’s largest manufacturers of monocrystalline silicon products.

The rapid rise of new photovoltaic power thanks to the photovoltaic industry as a whole warmed up. In 2013, the opinions on promoting the healthy development of the photovoltaic industry and a series of supporting policies, supported by PV industry quickly rebound in 2015, new installed capacity in China accounted for more than one-fourth. First quarter of the year, national new photovoltaic power installed capacity of 7.14 million-kilowatt, an increase of 41.7%.

Vice Director of China renewable energy Association, Meng Xiangan told reporters, PV the rise of new powers, benefited from the PV industry in China’s development and growth on the one hand, on the other hand is the enterprise to seize the opportunity and advantage of a late-developing advantage and development strategy of differentiation results, to reduce the cost of photovoltaic power generation, promote the rapid development of the industry as a whole.

Dodged a

Photovoltaic power can quickly grow and catch up, the advantage is an important factor. Jinkosolar is the most typical 2006 jinko was founded and a follower attitude has entered the silicon ingots, silicon wafer, component areas. At the time, Wuxi Shi zhengrong Suntech founder in 2005 became the richest man in effect, attracted a large number of domestic enterprises to enter the field of PV, jinkosolar just one of those things.

In 2008, the polysilicon prices soared all the way, spot market prices exceed US $ 500/kg. Downstream suffered of the photovoltaic industry, some enterprises are beginning to realize that need to go into the upper, to gain the initiative, partly by signing a long-term order and stability of polysilicon supply prices. That year, Yingli invested 2.4 billion yuan of investment to set up 69 silicon industry limited company, entered the field of polysilicon, is a typical case.

Jinko CEO Chen Kangping to finance national weekly reporters, there were too many companies into upstream, although the Government has provided preferential tariff, jinko project experience and does not have a strong competitive advantage, decided to “wait”. Not only that, in 2010, jinkosolar will also have signed half transferred to other companies in the long term.

But precisely this “wait” decision, jinko avoiding the risk of polysilicon prices collapse in the future. In 2011, the photovoltaic market situation changes. Because polysilicon and PV module production too much, while the solar market has been shrinking, supply far exceeds demand, so that the whole industry chain is serious. In October of that year, poly-SI spot price of 250,000-300,000 yuan per ton to below cost price.

The same month, the Germany solar company solarworld’s United States Branch (SolarWorld) combined with 6 other manufacturers to the United States International Trade Commission and United States Department of Commerce to apply requirements on China’s export of solar photovoltaic products for “double reverse” investigation. United States Department of Commerce ruled in October 2012 China solar products and components 18.32%-249.96% of the anti-dumping duty is imposed by, and countervailing duty 14.78%-15.97%; in November, the United States International Trade Commission approved this decision, to make a final decision.

Polysilicon industry reshuffle. Some initial investment enterprises have to halt production of polycrystalline silicon, signing a lot of long term business on the back of heavy cost burden. For example, when the Yingli, invests heavily, weighed down by polysilicon investment implications. While the once popular LDK gamble polysilicon, and ultimately bankruptcy reorganization.

Jinkosolar has not only successfully dodged, also has extended the South Africa, and India, and Australia, such as emerging markets, avoiding over-reliance on us and European markets. In 2011, 11 on PV companies listed on the NYSE, apt became one of only two profitable enterprises. China PV industry association 2015-2016 annual report of China PV industry 2015 jinko solar module shipments 4200 megawatts, ranking third in the world.

Energy Research Institute, national development and Reform Commission said, jinko can rise quickly, very important reason for this is to avoid the front company through pitfalls and detours; proper control of PV industry expansion in silicon wafers, cells, modules capacity in three areas, forming up self-supporting; in the case of listed funds to emerging markets and downstream.

“In addition, photovoltaic equipment, a large number of domestic, prices fell sharply, make new enterprises invest relatively less, gross profit margin increased, but also to a certain extent, boost the rise of photovoltaic power. “China PV industry association member Wang Liang, Deputy Director of the Department of financial state weekly said.

The difference

In another segment of the PV field, world’s largest telecommunications equipment provider Huawei achieved in only 3 years of cross-border against attack.

Huawei unveiled results showed 2015 shipments 8.5 gigawatts, became the largest shipments of photovoltaic grid-connected inverter manufacturers. Inverter is essential electrical equipment for photovoltaic, PV is the role of the direct current into alternating current, connected to the grid or supply the user, called the photovoltaic power station of the central nervous system.

Prior to the company, the largest manufacturer of inverters sungrow power supply has been in the field with roots in 16, and formed in a centralized inverter on the leading edge. Huawei entered the field and select a different product line–string inverters. Turns out, string inverter costs are high, but in the whole life cycle produces more electricity, photovoltaic power plant controlled by a single device small size, ease of maintenance, if a failure occurs, without the power plant or a large suspended, as long as the overhaul a small piece in order to receive market acceptance. HIS latest statistical data show that in 2015, the group accounted for 40% series inverter market in 2012 and only 11%.

Hang Yu solar energy science and technology limited company President Ding Wenlei described to reporters, Huawei with a string inverter market differentiation, while combining string inverter operating characteristics, expanded services such as monitoring, data acquisition, operational analysis, proposed the concept of intelligent power station, from parts providers into professional power solutions and services provider. This service model innovation to subvert the traditional concept of manufacturers selling products, enhance the efficiency of the entire power plant operation and maintenance, and reduce operation and maintenance costs.

However, insiders said, such as Hefei sungrow power supply enterprises entering the market for string inverters, differential advantage and a corresponding weakening of Huawei.

Industry insiders said, now, Huawei’s main string inverter and PV system solution concept is not unique to the top domestic manufacturers with Huawei’s products and technical aspects insurmountable gap does not exist. Huawei’s real killer is that it is good at marketing, they adopted a proactive marketing and service model, making it difficult for colleagues to follow suit.

Longi shares also depends on the success of the differentiation model. The longi shares was founded in 2000, entering the PV not too late, however, and many domestic enterprises to choose technology course is different, longi shares has always focused on Silicon rods, Silicon research and development, production and sales. In 2005, the polysilicon market booming, longi shares is a small plant with only more than 10 sets of single crystal growth furnace.

Polysilicon is a huge market opportunity, longi shares the management team once lost, confused or even polycrystalline silicon to turn to, eventually, semiconductor materials management Li Zhenguo, Zhong Baoshen who believe by training, Crystal more promising in the future, decided to stick to this line. In the period of 2006 to 2010 crazy leap across the sector, dormant longi shares down, conduct research and prepare. Almost into 2011 China PV industry difficulties case, longi stocks are the opposite, opting into advanced technologies, the rapid expansion of production capacity, and listed on the main Board of the stock exchange in Shanghai in April 2012.

Along with the recovery of the domestic PV market, starting in 2014, longi shares to identify opportunities, industry chain downstream. Year bought Zhejiang photovoltaic technologies, Ltd, entered the field of cells, modules, monocrystalline PV module prices decline rapidly and compete with polysilicon. 2016 for the first quarter show, longi shares revenue 2.209 billion yuan, an increase of 169.11%, a net profit of 261 million Yuan, an increase of 417.59%.

“Dead soldiers is a good soldier”

Policy has always been a core variable of PV industry in China.

December 2015, the national development and Reform Commission issued wind solar power on improving land benchmark price policy notice, June 30, 2016 deadline for grid-connected: if not grid-connected prior to June 30, 2016 benchmark price is executed, the new electricity prices decreased.

In order to catch the obtained before June 30 on-grid electricity prices higher so far this year, photovoltaic power plant and raw materials have been installing surge. According to the IHS in 2016, nearly 13 gigawatts of solar PV installed capacity in China in the first half, while the 2015 period was 7.73 GW.

But blindly hidden risk of expansion. Previous typical lessons such as Yingli through expansion in 2012, 2013 won components shipments for two consecutive years for the first name, but unable to catch up with the 2015 all-pace of industry profits.

Member of China PV industry association said Wang Liang, Deputy Director of the Department, on the one hand should encourage the rapid development of photovoltaic power rise, on the other hand, must be based on sound sustainable, GCL-poly, and Trina, Sun power, still is a step by step development of models, “not dead soldiers is a good soldier. ”

Another risk is that a serious abandon market shrink from lag and subsidies. State grid Energy Research Institute statistics show that 2015 national power grid dispatching range (excluding West Inner Mongolia) total abandon photoelectric was 4.65 billion kWh, abandon rates 12.62%. June 3 issued by the National Energy Board in 2016 PV implementation programmes, have to leave Xinjiang, Gansu and Yunnan to suspend release of the serious light indicators. Meanwhile, the subsidy arrears due to insufficient Fund for renewable energy development issues cannot be solved any time soon.

The industry believes that, due to leave and subsidies, installing after market demand may fall rapidly in the first half. At that time, PV new round of excess capacity or will return. Starting from the second half of 2015, with the rapid development of the photovoltaic industry, some previously discontinued “zombie companies” has been revived.

Original title: rise and worry in photovoltaic power

Posted in Solar Charger.