90 % of Chinese solar panel producers reduce production
Solar industry gaining strength from home [Chinadaily]
Based on industrial association data, it is estimated that over 90 percent of Chinese solar panel producers have reduced or halted production since last year.
However, many, like Shanghai-based JA Solar, Jiangxi's Jinko Solar, and LDK Solar, one of the world's largest manufacturers of solar wafers, have recently resumed production.
Fang Peng, JA Solar's chief executive officer, said in the company's quarterly report that domestic shipments "more than doubled" in the third quarter from the previous quarter.
The pick-up comes as the Chinese government has moved to boost demand and confidence in the home market.
According to a report released by the National Energy Association on September 12, China will expand its installed solar power generation capacity to 21 million kilowatts by 2015, a five-fold increase from the 3.6 million kilowatts seen at the end of 2011.
In a circular released on Sept 14, the administration asked each provincial-level region to make plans for building on-site photovoltaic generation demonstration centers to buoy the domestic solar sector.
One factor limiting domestic demand for solar panels is the difficulty in integrating PV technology with the State Grid Corporation of China (SGCC), the country's largest power transmission network. It has reason to be fearful that more on-site generation plants could mean less consumption of power provided by the SGCC.
In light of the sector's tough situation, however, the SGCC made concessions and said in October that it will allow solar generators with less than 6 megawatts of installed capacity to be connected to the grid.
"With the series of new incentive programs in place, we believe the China market will embrace a very promising future," said Miao Liansheng, Yingli's chairman and chief executive officer.
What also may cheer the market is the latest order from a US company. Bucking sharp declines in the European market, Yingli announced on Wednesday that it had inked a $10 million order with America's Fluor Corporation, marking the Chinese PV industry's biggest supply agreement from the US since the imposition of US anti-dumping tariffs.
Data from the Ministry of Commerce showed that more than 90 percent of Chinese solar products are for export, with 70 percent going to the eurozone and 10 percent to the US market.