As the world's largest photovoltaic solar energy market, European countries are cutting or withdrawing their subsidies.
Germany began to reduce the total amount of subsidies by 3% from October. The relevant agencies forecast that the demand in Germany in 2012 will exceed 50%.
Another major photovoltaic market in Europe, Spain, also plans to reduce solar electricity prices by 45%. The Czech Republic is expected to reduce its 700 MW solar power plant investment.
European "big cake" will shrink?
According to Zhou Yanwu, director of research and analysis of Shuiqing Muhua Photovoltaic Solar Energy Industry, more than 90% of photovoltaic solar energy companies in China are required to export and are mainly concentrated in European countries. According to the financial statements of the US-listed Tianwei Yingli, the largest market for sales in 2009 was Europe, which was 89.5%, of which Germany accounted for 63.1%. The two corresponding indexes of Wuxi Suntech were 74% and 41.4% respectively.
“Financial subsidies such as Germany and other European countries have actually reduced the financial subsidies to adjust the profitability of this industry.†Zhang Jianmin, head of the investor relations department at Wuxi Suntech, told the reporter yesterday. “For example, for residential needs, the installation still needs to be installed. The total demand will not be significantly reduced."
Another person in the photovoltaic company Jinglong Industry said yesterday that the impact of European countries’ reduction of subsidies will not occur until at least the first half of next year.
The fact that domestic companies have no fear of continuing to expand also proves that domestic companies have no fear of European countries cutting their subsidies for the photovoltaic industry. Yesterday, the Oriental Sunrise announced that it plans to invest more than 800 million yuan to build a 300MW crystalline silicon solar cell production line, which will double the company's existing production capacity.
Just a few days ago, Aerospace and Hengdian East Magnetic respectively announced that they spent more than 1 billion yuan to expand solar cell production capacity.
The domestic photovoltaic leader earlier announced the 2011 expansion plan. Taking Suntech, Wuxi, Yingli, Jinao, LDK, Jinglong and Changzhou Tianhe as an example, they all had plans for more than 10% expansion in 2011.
However, Zhang Jianmin frankly stated that in order to reduce its reliance on a single market, Wuxi Suntech is expanding markets in Thailand and other regions.
Meng Xianyi, deputy director of the China Renewable Energy Society, once stated that by the end of this year, the output of domestic photovoltaic companies will increase by more than 50%. Without developing new photovoltaic markets, it is difficult for domestic PV companies to guarantee full release of their production capacity.
Domestic PV companies "big outbreak" this year
Shui Qing Muhua issued a report saying that after the 2009 recession, the photovoltaic cell industry broke out in 2010.
Analysis of relevant parties, there are two reasons, first, polysilicon prices fell, leading to the downstream PV cell prices fell, greatly stimulating market demand. Second, the subsidy policies of European countries may face adjustments in the second half of 2010. The last train effect is obvious. As polysilicon accounts for the highest proportion of solar cell costs, the gross profit margin of photovoltaic cell manufacturers in the first half of 2010 has increased by several times or more. Chinese manufacturers expanded their production capacity significantly in the recession of 2009 and did not fear the market decline.
European companies are trying to create a complete industrial chain, battery components companies are making efforts to produce polysilicon films independently, and the number of foreign purchases of polysilicon is declining. On the contrary, Chinese companies, especially when capacity is insufficient, have purchased a large amount of polysilicon raw materials, resulting in a significant increase in performance.
Germany began to reduce the total amount of subsidies by 3% from October. The relevant agencies forecast that the demand in Germany in 2012 will exceed 50%.
Another major photovoltaic market in Europe, Spain, also plans to reduce solar electricity prices by 45%. The Czech Republic is expected to reduce its 700 MW solar power plant investment.
European "big cake" will shrink?
According to Zhou Yanwu, director of research and analysis of Shuiqing Muhua Photovoltaic Solar Energy Industry, more than 90% of photovoltaic solar energy companies in China are required to export and are mainly concentrated in European countries. According to the financial statements of the US-listed Tianwei Yingli, the largest market for sales in 2009 was Europe, which was 89.5%, of which Germany accounted for 63.1%. The two corresponding indexes of Wuxi Suntech were 74% and 41.4% respectively.
“Financial subsidies such as Germany and other European countries have actually reduced the financial subsidies to adjust the profitability of this industry.†Zhang Jianmin, head of the investor relations department at Wuxi Suntech, told the reporter yesterday. “For example, for residential needs, the installation still needs to be installed. The total demand will not be significantly reduced."
Another person in the photovoltaic company Jinglong Industry said yesterday that the impact of European countries’ reduction of subsidies will not occur until at least the first half of next year.
The fact that domestic companies have no fear of continuing to expand also proves that domestic companies have no fear of European countries cutting their subsidies for the photovoltaic industry. Yesterday, the Oriental Sunrise announced that it plans to invest more than 800 million yuan to build a 300MW crystalline silicon solar cell production line, which will double the company's existing production capacity.
Just a few days ago, Aerospace and Hengdian East Magnetic respectively announced that they spent more than 1 billion yuan to expand solar cell production capacity.
The domestic photovoltaic leader earlier announced the 2011 expansion plan. Taking Suntech, Wuxi, Yingli, Jinao, LDK, Jinglong and Changzhou Tianhe as an example, they all had plans for more than 10% expansion in 2011.
However, Zhang Jianmin frankly stated that in order to reduce its reliance on a single market, Wuxi Suntech is expanding markets in Thailand and other regions.
Meng Xianyi, deputy director of the China Renewable Energy Society, once stated that by the end of this year, the output of domestic photovoltaic companies will increase by more than 50%. Without developing new photovoltaic markets, it is difficult for domestic PV companies to guarantee full release of their production capacity.
Domestic PV companies "big outbreak" this year
Shui Qing Muhua issued a report saying that after the 2009 recession, the photovoltaic cell industry broke out in 2010.
Analysis of relevant parties, there are two reasons, first, polysilicon prices fell, leading to the downstream PV cell prices fell, greatly stimulating market demand. Second, the subsidy policies of European countries may face adjustments in the second half of 2010. The last train effect is obvious. As polysilicon accounts for the highest proportion of solar cell costs, the gross profit margin of photovoltaic cell manufacturers in the first half of 2010 has increased by several times or more. Chinese manufacturers expanded their production capacity significantly in the recession of 2009 and did not fear the market decline.
European companies are trying to create a complete industrial chain, battery components companies are making efforts to produce polysilicon films independently, and the number of foreign purchases of polysilicon is declining. On the contrary, Chinese companies, especially when capacity is insufficient, have purchased a large amount of polysilicon raw materials, resulting in a significant increase in performance.