China's PV market is still facing many obstacles

“We can't expect that without the US and European markets, we regard the Chinese market as a 'rescue', which is unreasonable. We should use a relatively long-term vision to develop the market, because any market is developing too quickly. Immature and harmful, including the Chinese market."

After countries such as the United States, Europe, and India have implemented "double reverse" investigations on China's photovoltaic products, most Chinese companies have targeted future growth points in the Chinese market. It is also expected that the Chinese PV market will break out in 2014. However, a number of industry sources said that there are still many problems in the photovoltaic market and distributed photovoltaic power generation in the domestic photovoltaic market. If they are not resolved, the development of China's photovoltaic industry will be hindered.

Wang Haisheng, chief economist of Minsheng Securities' new energy industry, told China Business News in an interview on the Intersolar China China Symposium yesterday that China does not have a long-term fixed electricity price subsidy policy and hourly electricity generation regulations. This is currently the development of China's photovoltaic industry. The biggest problem facing us.

“Because China's PV on-grid tariff contract is signed once a year, it is now 1 yuan/kWh, but it does not know what price it will be next year. Therefore, China has no sustainable electricity price policy in the development of photovoltaic power stations.” Wang Haisheng introduced that in foreign countries The photovoltaic power plant is equivalent to a securitized product. After investing in the grid connection, the government will have a relatively stable cash flow subsidy that can be measured and forecasted.

In the past 10 years, China’s new energy sources have seen rapid growth. The cumulative installed capacity of solar photovoltaic power generation has grown by 67 times, with an average annual growth of more than 50%. In addition, in order to respond to the "double opposition" proposed by the United States and Europe for China's photovoltaic products, China is actively expanding its domestic market share in order to help China's PV companies get out of their predicament.

It has been reported that high-level officials have recently finalized an increase in the total installed capacity of photovoltaic power generation in the "12th Five-Year Plan for Renewable Energy Development." The maximum ceiling may be 40 GW. In addition, distributed photovoltaic power generation has also become the focus of development in recent years. On December 11, the Ministry of Finance, the Ministry of Science and Technology, the National Energy Administration and other departments issued the "2012 Golden Sun demonstration project directory (second batch)" with a total installed capacity of 2.83 GW, plus the first in May. A total of 1.71 GW was awarded, which constituted a total installed capacity of more than 4.5 GW for the entire year of 2012. This is contrary to expectations of many industry professionals.

However, Li Junfeng of the China Renewable Energy Industry Association believes that due to the lack of flexible power supplies that can be dispatched in China, this has become the fundamental reason for the slow development of the construction of renewable energy power grids such as wind power and solar energy in China. Therefore, distributed energy is not in the short term. Will become the main power source, but only a supplement.

Li Junfeng said that in Germany and other European countries, flexible power supplies account for more than 85% of the total power supply, and most other developed countries can reach more than 50%, so they have enough conditions to absorb renewable energy. The proportion of flexible power supply in China is less than 10%, which increases the difficulty of renewable energy power generation.

Therefore, at the current stage, the photovoltaic power price policy is not yet continuous and the grid connection is difficult. There are also many concerns about the development of the domestic market.

“We can't expect that without the US and European markets, we regard the Chinese market as a 'rescue', which is unreasonable. We should use a relatively long-term vision to develop the market, because any market is developing too quickly. Immature, harmful, including the Chinese market." Jinko Chen CEO Chen Kangping told reporters that the Chinese market is no way to replace the European and American markets in the short term, because the Chinese market cultivation requires a certain amount of time and process.

Therefore, Chen Kangping believes that enterprises can still not abandon the European and American markets. He said that although the United States has established its "double opposition," most companies will seek Taiwanese OEMs for solar cell products. In the European market, he believes that Europe will deal with it rationally. If the "double reverse" is established, it will not only increase China's production costs, but also increase the cost of use in Europe.

“The European market cannot be completely closed to China within a year or two, because Europe needs to cultivate a market outside of China for at least three years.” Chen Kangping’s optimism