The application of the photovoltaic industry rises to a normal state

January 14, vertically integrated photovoltaic solar developer SPI announced that its global operations headquarters in Shanghai, and signed a strategic cooperation agreement with CSR, will further develop new business applications in the photovoltaic industry. People in the industry believe that after the PV industry has experienced "winter", it has already bottomed out and is expected to take advantage of the rise of application-side demand to emerge from the crisis and usher in new development opportunities.

Industry application "rise"

Recently, the Ministry of Industry and Information Technology publicly solicited opinions on the “Regulations for Photovoltaic Manufacturing Industry (2015)” (Draft for Soliciting Opinions), and the trend of industry norm development has been deepened. In the opinion of industry insiders, the photovoltaic industry needs to seek the support of its own development while regulating the development, and it needs the strength of the industry application end. The emphasis on photovoltaic applications in Anhui Hefei, Guangdong, and Guangzhou represents new opportunities for development in the industry.

The development of China's photovoltaic industry has always been a matter of “two ends out”. The so-called "two ends out" means that raw materials are dependent on foreign countries and the market is almost entirely foreign. It is reported that in the early stage of the industry development, more than 95% of the photovoltaic industry was supplied to the overseas market, which is mainly based in the European Union. This model has a lot of "hard injuries", especially when the industry suffers from fluctuations in the price of upstream raw materials and exports suffer from "double opposition" and so on, the status of domestic photovoltaic companies in the industrial chain is quite "sudden": the upstream raw materials are not necessarily With bargaining power, downstream applications are in the hands of others and are full of political and economic factors of instability.

Wang Bohua, secretary general of the China Photovoltaic Industry Association, believes that the healthy development of the domestic photovoltaic industry needs to open up the market for photovoltaic applications. In his view, the domestic photovoltaic industry has shown a trend of bottoming out after undergoing a phased setback in its development. The industry is expected to usher in a new stage of expansion of scale and open development prospects. It is predicted that in 2014 China's polysilicon production exceeded 130,000 tons, reaching an unprecedented level. If we add nearly 100,000 tons of imports, the supply of polysilicon may reach 230,000 tons. The background to the recovery of the industry is that external trade barriers have not been eliminated and are likely to increase. It is not difficult to find that the reasons for the industry's recovery can largely be attributed to the gradual opening of the domestic market for photovoltaic applications.

In 2014, at the national and local government level, we will build demonstration sites for photovoltaic applications and promote distributed photovoltaic power generation as key work to promote the photovoltaic industry. In December 2014, the National Energy Administration issued three documents relating to photovoltaic construction, which required the completion of grid connection of photovoltaic power generation projects in 2014, promote the construction of distributed photovoltaic power generation application demonstration areas, and do a good job in solar energy development. Planning preparation work. Local governments also followed the trend. For example, Yingtan City, Jiangxi Province promulgated the Yingtan City Work Plan for Accelerating the Application of Photovoltaic Power Generation in the City, and Hefei, Anhui Province proposed to actively build distributed photovoltaic power plants and large-scale photovoltaic ground power plants to promote the integrated development of building photovoltaics. Strive to create "China's first city of photovoltaic applications." It can be seen that the rising trend of the industry application end is obvious.

Capital or new layout

The momentum of the recovery of the photovoltaic industry has also been reflected in the capital market. In the second half of 2014, the Flush Concept PV Index rose 16.79%, and listed companies in the industry also achieved good results. Among them, the 2014 earnings forecast of Zhonglai Co., Ltd. shows that the company’s net profit attributable to the shareholders of the listed company was RMB 113 million to RMB 123 million, an increase of 15.66% to 25.89% over the same period of the previous year. Sunflowers said that the overall development of the company in 2014 was good. The operating performance is stable, and it is estimated that the profit will be 35 million to 45 million yuan, and the profit for the same period of the previous year will be 40,606,700 yuan.

The emergence of industry recovery has also attracted new capital. Recently, Fangda Group announced plans for non-public offering of shares that it plans to raise 1.008 billion funds for distributed photovoltaic power generation projects. Fangda Group has signed cooperation agreements with the Nanchang Municipal Government of Jiangxi Province and the Longnan County Government on the investment and construction of solar photovoltaic power stations in Nanchang City and Longnan County. According to the agreement, Fangda Group will invest in, construct and operate a solar photovoltaic distributed power station project with a total capacity of 400MW in Nanchang City and Longnan County in Jiangxi Province from 2015 to 2018. Prior to this, the company had signed a framework agreement with the eleven science and technology for the development of photovoltaic power plants, and also signed a cooperation agreement with Pingxiang City, Jiangxi Province for the construction of a 500MW solar photovoltaic power station. China Minting Investment, which has received much attention from the market, has already “discussed the layout” in the photovoltaic industry. Its “first show” in the photovoltaic sector has officially commenced construction of a 200 megawatt (MW) photovoltaic grid-connected power generation project in Ningxia.

Industry analysts believe that the above capital action is an example of the continuous expansion of the domestic photovoltaic application market. “This has changed compared with the previous industry thinking. Before we run scale and running capacity, we are now paying attention to the downstream applications of the industry. This will be a trend. Photovoltaic companies that previously only fought in the manufacturing sector may also extend to applications. After all, this piece of technology is of great significance to the continued development of the industry, and the expected profit margin is also much larger than pure manufacturing,” said a brokerage analyst.