Solar photovoltaic rapid development

In today’s world, the growing demand for solar photovoltaic cells has led to a surge in domestic enterprises becoming OEM factories for these cells. This presents an excellent chance for these businesses to expand and thrive. The U.S.'s new energy policies have opened up great opportunities for domestic photovoltaic companies. Several industry leaders have started setting up branches in the U.S., undertaking photovoltaic power generation projects and actively entering the local market.

With 95% of China's market being abroad, domestic applications remain quite limited. In the long term, China may not widely adopt solar photovoltaic power generation technology. The energy issues China faces during its economic growth are becoming increasingly severe, and they will undoubtedly hinder China's economic progress. Despite this, China is one of the countries with abundant solar resources. The desert regions in China cover an area of 1.08 million square kilometers, mostly located in the resource-rich northwest. A square kilometer of this desert can accommodate a 100-megawatt photovoltaic array, generating approximately 150 million kWh annually. If just 1% of this desert area were utilized, it could produce the equivalent of China's total electricity consumption in 2003. Currently, many parts of China, especially in the north and along the coast, enjoy over 2,000 hours of sunlight annually, with Hainan reaching over 2,400 hours. This makes China a true solar resource country, offering favorable geographical conditions for widespread photovoltaic power generation adoption.

In recent years, the Chinese government has introduced several policies regarding the development of renewable energy. One of the most notable is the "Notice on Implementing the Golden Sun Demonstration Project." This notice emphasizes the construction of demonstration projects like user-side grid-connected photovoltaic power generation, independent photovoltaic power generation, large-scale grid-connected photovoltaic power generation, and the industrialization of key photovoltaic power generation technologies such as silicon material purification and grid-connected operation, alongside related infrastructure development. The level of unit investment subsidies for each project depends on the degree of advancement and market development status. For grid-connected photovoltaic power generation projects, 50% of the total investment in photovoltaic power generation systems and associated transmission and distribution projects will be subsidized; for independent photovoltaic systems in remote and non-electrified areas, 70% of the total investment will be covered. Key technology industrialization and foundational capacity building projects will primarily receive grants and subsidies.

This policy has transformed China from a mere foundry factory for photovoltaic cells into a solar photovoltaic power generation nation. Facing the challenges posed by competitors, domestic PV companies must enhance product quality and open both domestic and international sales channels to seize opportunities effectively and strengthen their businesses.

Solar energy, being renewable and environmentally friendly, has positioned itself as a key sector in the new energy industry. Although China's PV products are primarily exported to Europe and America, the domestic market remains small. Due to increasing demand in Europe and the U.S., China's photovoltaic industry has experienced rapid growth over the past five years, with an average annual growth rate exceeding 40%. With further policy support, the future of the photovoltaic industry looks promising.

The photovoltaic power industry chain spans from polysilicon, silicon wafers, battery cells, to battery modules. As we move down the chain, the technical threshold for production decreases, resulting in a higher number of companies. Consequently, the profits of the entire photovoltaic industry chain are largely concentrated in the upstream polysilicon production segment, where upstream enterprises enjoy significantly better profitability than those downstream.

Currently, the profit derived from polysilicon production in mainland China constitutes the largest portion of the total profit of final battery module products, accounting for about 52%; battery module production contributes around 18%, while battery chip and wafer production account for approximately 17% and 13%, respectively.

Since 2008, polysilicon prices have fallen dramatically. By now, the domestic spot price of polysilicon has dropped from $500/kg last year to $100-150/kg. In 2012, the price range was 18~30 USD/kg.

The rapid expansion of polysilicon capacity coupled with relatively slow demand growth is the primary cause of the price decline. According to iSuppi's forecast, global polysilicon supply is expected to double in 2009, while demand growth is only projected at 34%. Thus, polysilicon prices are likely to fall further. iSuppi even predicts that by 2010, the spot price of polysilicon will drop to $100/kg, significantly reducing the profitability of polysilicon suppliers.

The decrease in polysilicon prices benefits cell manufacturers but poses significant risks to pure wafer businesses. Whether upstream polysilicon suppliers or downstream cell manufacturers, neither faces any technical barriers in producing silicon wafers. When both upstream and downstream companies ventured into the wafer business simultaneously, the profit margins in the silicon wafer chain were severely compressed.

China’s photovoltaic industry has developed a relatively comprehensive industrial chain. In 2009, China’s polysilicon production surpassed 20,000 tons, and solar cell production exceeded 4,000 megawatts, making it the world's largest solar battery producer for three consecutive years.

In May 2010, the China Photovoltaic Industry Alliance was established, attracting 22 domestic PV backbone enterprises, industry associations, and research institutions. The alliance aims to guide industry collaborative innovation, promote applications, and standardize development. It studies policies encouraging photovoltaic industry growth and supports enterprise technological transformation and industrial upgrading. The alliance focuses on integrating industrial resources, promoting structural adjustments, transforming development methods, enhancing industry cohesion, and expanding international influence and competitiveness.

Pneumatic Valve

Pneumatic Valve,Control Valve,Steam Valve,Fully Welded Ball Valve

ZHEJIANG KINKO FLUID EQUIPMENT CO.,LTD , https://www.kinkoflow.com