05 May 2009 National Policy Supports Growth of China PV Industry

Different advanced technologies were unveiled at the “SNEC PV Power Expo” themed “Developing new energy to foster the well-being of mankind”

On 5 May 2009, the “SNEC 3rd PV Power Expo” opened at the Shanghai International Convention Center. The largest photovoltaic (PV) exhibition and conference in Asia, the event attracted participation of industry professionals, scholars, academics and entrepreneurs from more than 40 countries and regions including Germany, the US, Japan, France, Austria, Holland, Switzerland, Belgium, Singapore, Spain and Taiwan.  Participants were engaged in discussions on a variety of topics from future market trends and cooperation strategy to political direction, and front-end technology of the solar energy and PV industries. The event also showcased some of the most advanced PV technologies of major domestic and foreign PV companies. Among them, the revolutionary [雙結薄膜] technology of American Applied Materials Inc. is the first and only production line for manufacturing the super-thin film solar cell on a super-large 2.2m x 2.6m panel. That size panel is four times the largest used now in solar cell production. A leading motive and storage batteries supplier in China, Tianneng displayed the fruits of its latest R&D efforts – plastic storage cells for wind and solar energy.

Solar energy is the only renewable energy that can meet the biggest share of future energy demand of mankind.  This explains the emphasis of many countries including China on developing solar energy. According to the forecast of an authoritative international report, by 2030, renewable energy will account for over 30% of the global energy supply and solar energy will make up more than 10%; and, by 2040, the former will increase to over 50% and the latter to 20%. By the end of the 21st century, renewable energy and solar energy will account for more than 80% and 60% respectively of the total energy supply in the world.

Suntech and Tianneng jointly initiated the set up of APVIA

According to the Shanghai New Energy Industry Association, the registration of  APVIA in Singapore was formally approved on 23 January 2009 after close to a year of preparation, and a preliminary meeting for the inauguration of the organization was recently held in Shanghai.

China has the largest PV industry in the world and the industry has reported consistent tremendous growth. It put out a total of 6,000 kilowatt of solar cells in 2002 and, by 2008, its output had risen to 2,000,000 kilowatt, putting the country in the top spot of the global market.

To lead the development of the PV industry in China and Asia at a higher level, institutes and companies including the Chinese Renewable Energy Society, Shanghai New Energy Industry Association, Suntech and Tianneng initiated the APVIA. The new organization and its European counterpart are expected to support each other and make advancement together in the future.

Driven by favorable government policies, PV industry focuses on quality enhancement amid adverse market conditions

Authoritative sources have revealed that China is drawing up a series of plans to invigorate the new energy industry and these plans will be implemented gradually in the near future.

Mr. Zhao Yuwen, Deputy Director of the Chinese Renewable Energy Society and head of the PV Division, told the media recently that the 《Regulations on on-grid Power Tariff》 might be applied to the PV energy industry this year.

Prior to that, the Ministry of Finance and Ministry of Housing and Urban-Rural Development had already introduced the new policies that are conducive to development of the solar PV industry.

According to the these policies, the Central Government can allocate part of the fund in the renewable energy project fund to promote model solar energy project in urban-rural construction. For 2009, the standard subsidy is set at 20 yuan /Wp. Subsequent standard annual subsidy in the future will be adjusted with reference to the development status of a project.

Ministry of Housing and Urban-Rural Development Department estimates the gross floor area of construction in villages in China at 25,000,000,000m2 and that in cities at approximately 22,000,000,000m2.  Based on the average plot ratio of 1 for both villages and cities and the presumption of a 50% solar cell installation rate, the installable area for solar cells will be 23,500,000,000m2 or 2,350,000,000,000 watt of electricity supply with 100 watt generated per square meter of the cells, which is 400 times the total number of solar cells installed globally last year.

The industry welcomes this first concrete policy to support the PV market in China. Informed sources told the reporter that the policy mainly targets large PV constructions and relevant “advice” on such as terrestrial and rooftop applications and on-grid pricing will be unveiled later.

As the authority continues to roll out supportive policies, the new energy industry in China is expected to see a very bright future.





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