In the backdrop of the "dual carbon" initiative, solar energy has emerged as a pivotal player, especially within the photovoltaic (PV) industry. Despite facing formidable market challenges, China's PV sector has displayed remarkable resilience, witnessing an upward trajectory over the past three years.
As per the Boston Consulting Group's (BCG) "Global Trends Analysis of the PV Industry" report, projections suggest that by 2030, China's PV electricity generation will surge from 3.259 trillion kilowatt-hours in 2021 to a staggering 15.45 trillion kilowatt-hours, constituting a substantial 27.6% of the total electricity generation.
Domestically, the PV industry in China is experiencing an unprecedented surge, characterized by significant industry concentration. Chinese companies dominate key sectors such as silicon materials, wafers, cells, modules, and inverters, boasting market shares exceeding 70%. Notably, silicon wafers command an overwhelming 96% market share, establishing themselves as undisputed market leaders.
The industry's characteristics, including its upward trend against market odds, high growth trajectory, and industry concentration, are evident across three key dimensions: technology, industry landscape, and policy framework.
- China's PV industry stands out for its significant technological prowess, continually advancing at a rapid pace. The successful mass production of N-type cells in 2022 underscores this technological prowess. Moreover, technological innovations are swiftly disseminating throughout the industry chain, particularly benefiting equipment manufacturers.
- There's a notable trend of vertically integrated enterprises expanding their capacities. Leveraging China's abundant upstream resources and mature supporting industries, leading enterprises have achieved comprehensive vertical integration. This trend is gradually extending to second-tier companies, resulting in enhanced industry efficiency and improved profit margins.
- On the policy front, the "14th Five-Year Plan for Renewable Energy Development" underscores the active promotion of distributed PV, with substantial government support driving the PV industry forward.
In addition to these dimensions, the growing importance of solar energy storage systems within the PV industry is worth noting. Solar energy storage systems, which consist of solar panels, energy storage devices such as batteries, and smart control systems, play a pivotal role in ensuring reliable and efficient energy supply. By harnessing solar energy during peak sunlight hours and storing it for later use, these systems mitigate the intermittency of solar power and contribute to grid stability.
Furthermore, the maturation of the PV industry is attracting significant attention from capital markets. As the industry evolves, capital orientation is gradually shifting towards seeking "alpha" investments that offer superior returns. Consequently, companies capable of pursuing internationalization strategies and establishing differentiated brands are likely to stand out in the competitive landscape.
If you're interested in learning more about our solar energy storage offerings, we encourage you to explore our product line. We offer a range of panels and battery that are designed for various applications and budgets, so you're sure to find the right solution for your needs.
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Post time: Apr-02-2024
