China's solar photovoltaic market development "benefit"

China's demand for solar photovoltaic market accounts for a sharp increase in the proportion of the Asia-Pacific region The latest data show that the Asia-Pacific region is gradually becoming the largest market for solar photovoltaic power generation. According to Solarbuzz's research report on Asia-Pacific's major photovoltaic market, the Asian PV market is expected to grow by 39% in the fourth quarter of 2011. Historical data show that in the fourth quarter of this year, the Asia-Pacific region will increase by 130% from the same period of last year. Of course, the most striking data in the report is that China's PV will account for 45% of demand in the fourth quarter of the Asia Pacific region. The increase in demand in China stems from the recent adjustment by the National Energy Administration of the PV installation target from 10GW in 2015 to 15GW.

China is not the only country in Asia that is ambitious to pursue clean energy goals. India’s national incentive program also helps to boost demand in the Asia Pacific region. In both of the world’s largest and growing economies, the needs of these two countries are driving the development of utility-scale projects. According to Solarbuzz, the non-residential ground installation system in the Asia-Pacific region will account for 64% of the market by the end of 2012. At the beginning of this year, this portion accounted for only 16%. A Solarbuzz analyst said that the Asian market has filled the gap in the market, and as the European market has subsided, the Asian market has become the focus of many international companies seeking to expand. However, these companies also face many obstacles, and this emerging market has too much potential.

The current market growth is being eroded by the sharp decline in component prices, which led to market consolidation, such as the collapse of Solyndra, which also led to the war between photovoltaics in the United States and China. Major U.S. government officials, such as the Minister of Energy Zhu Xiwen, recognize the importance of emerging clean technology markets such as the solar industry. Zhu Shuwen has been trying hard to lobby the government to create incentives for U.S. companies so that they can not only develop their needs in the country but also apply the technology in the Asia Pacific region.

China occupies the most special position in the global solar emerging market In the global solar emerging market, China’s position may be the most special. China was originally not the most important solar photovoltaic market, but it has many of the world's leading solar photovoltaic manufacturing companies. In 2010, five of the top ten manufacturers of solar photovoltaic cells and light panels were Chinese companies; over 50% of the world's photovoltaic panel manufacturers are built in China. The rise of these companies has provided development facilities for China's own solar power demand. According to reports, China's solar photovoltaic cells reached 10 GW in 2010, and China’s solar photovoltaic cells are the world’s largest, and it is expected to reach 30 to 40 GW in the next two to three years. With the scale effect of the photovoltaic industry and continuous innovation of new technologies, the investment cost of solar power generation has been declining year by year. The current bidding power price has dropped to 0.6 yuan to 0.9 yuan. In the field of solar thermal applications, in 2010, China produced a total of more than 400 million vacuum tubes and used 368 million actual tubes. The company produced 46 million square meters of vacuum tube water heaters throughout the year, and produced 49 million square meters of water heaters, an increase of 16.7%. In 2009, the number of possessions was 145 million square meters, and the actual usage in 2010 was 168 million square meters, consolidating the status in the world.

At the beginning of the "12th Five-Year Plan" announced in March this year, the Chinese government originally planned to add 5GW to the solar energy market; but after the earthquake in Japan, the newly installed capacity of solar energy doubled from 5GW to 10GW (to 2015). In November 2011, it was revealed that the “Twelfth Five-Year Plan” will again increase the installed capacity of solar energy in 2015 to 15GW. A good sign for China's solar energy industry in 2012 is that with the increase in demand in Japan's domestic market in 2012, competition with Chinese manufacturers may decrease. The Japanese market is relatively closed. It is not easy for foreign companies to enter, but the growth of its domestic market will absorb more Japanese companies. For Chinese manufacturers, this actually means the reduction of international competition.

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