The ambition of the Chinese PV industry is to grow with about 400% in the coming 5 years. This is just one of the conclusions in the unique survey report from SolarPlaza entitled "The Chinese PV Market and Industry".
The ambition of the Chinese PV industry is to grow with about 400% in the coming 5 years. This is just one of the conclusions in the unique survey report from SolarPlaza entitled "The Chinese PV Market and Industry". Although the domestic PV market is still in its infancy, the production and export of solar grade silicon, cells and modules has grown by 50-100% in 2005. The total available production capacity for cell and module production (of the current 30 major companies involved) is already more than 20% of the world's total, coming from less than 1% only 5 years ago. Currently, China is the world's third country in terms of solar cell production capacity and is expected to grow to 820 MW per year in 2006 based on the ambitions of the 20 cell manufacturers already active in this market.
New silicon production
The actual production is limited by the availability of solar silicon and wafers on the world market. This has resulted in several new Chinese feedstock production initiatives and companies. "We already found 14 companies with activities (started) in the field of solar grade silicon (SGS) and solar wafer production. These companies aim to produce close to 10,000 tons per year in 2007," according to Edwin Koot, president of SolarPlaza and one of the authors of the report. The Chinese PV industry is still heavily dependent on the import of this feedstock. Looking at the ambitions of the Chinese PV value chain from SGS to module production, expectations are that even in 2010 China will need to import solar grade silicon and wafers to maximise their production of cells and modules.
450 MW installed power by 2010
The overall goal of the Chinese government is to have 450 MW cumulative PV power installed in China by 2010, compared to the estimated current 75 MW in 2005. In order to achieve this, an average sales growth of 40% per year until 2010 is needed. The ambition has even been set to 8,000 MW by 2020 for the next decade where PV could already be cost competitive. The main market segment in China is rural electrification. Some 7 million people have no access to electricity, mainly in the north and west. The central government initiated the Village Electrification Programme ("Song Dian Dao Cun"), targeting to electrify another 20,000 villages in China's off-grid western region between 2005 and 2010. The grid connected market will be growing rapidly with an expected 75% per year at least. In absolute figures, however, this is low and only entails a few MW per year. The new Renewable Energy Law, coming into force next January 2006 and including a feed-in tariff, and projects, such as the 100,000 roof programme in Shanghai, could further boost growth in this market segment.
Directory of 250 Chinese PV companies
"The huge domestic potential of solar PV application, the excellent solar radiation conditions and a rapidly growing industry based on Western technology and equipment, provide conditions for China to dominate the PV market and industry in the world during the next or even this decade," says Edwin Koot. The 100-page report provides focused and highly structured information about the Chinese PV market and industry for strategic business analysis. Included are company profiles of the major Chinese manufacturers (30) of SGS, wafers, cells and modules and a directory of more than 250 Chinese PV companies. The report, furthermore, provides detailed market information and forecasts, a comprehensive overview of national PV programmes and the new Renewable Energy Law, a description of the Chinese solar PV supply chain including listings of the involved companies, the most important market segments and general country and business information.
International PV trade mission to China
Following this report and the success of the trade mission to Spain, SolarPlaza will be organising the "PV business Tour China" in April 2006. The programme will include visits to major manufacturers, a brokerage event and a symposium to meet with other major Chinese PV companies. The central goal of this international business tour is to meet the Chinese PV Industry, producers of SGS, solar wafers, cells and modules and to experience opportunities for collaboration.
SolarPlaza.com is the global PV marketplace for trade and information. SolarPlaza offers a range of services to empower the PV business for all players involved in the PV supply chain. The Chinese market report (€ 950 with discounts for members) is the successor of the SolarPlaza report on the Spanish PV market. This was sold worldwide and was well received by the international PV industry. More information and an order form can be found if you visit www.solarplaza.com
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