Wenli New Energy: Overseas PV market growth presents significant opportunities for domestic PV companies

   　If energy prices are stable, the prices of industrial production materials will generally remain stable. Currently, the global energy market is fraught with uncertainty. In the second half of 2021, global energy supply was tight and prices rose sharply. Since the beginning of 2022, the continued global spread of the COVID-19 pandemic, coupled with factors such as the Russia-Ukraine conflict, has created a complex and volatile global energy market.

　　Amidst global energy price instability, countries are turning their attention to the inexhaustible power of photovoltaics. Low cost is an advantage for Chinese photovoltaic companies.

　　"It is understood that many countries will introduce or are about to introduce industrial policies this year to replace finished product imports with local photovoltaic manufacturing. Since China has accumulated manufacturing advantages in the entire photovoltaic industry chain in the past decade, the competition faced by domestic companies has become increasingly fierce. Therefore, the incremental overseas photovoltaic market is an important opportunity for domestic Chinese photovoltaic companies." Qiu Wenxu, a specially appointed researcher for international cooperation of the National Development and Reform Commission and director of the Industry Department of the Business School Alliance Think Tank, said in an interview with a reporter from China Economic Times.

　　At present, the skyrocketing energy prices and energy security issues caused by the Russia-Ukraine situation have become Europe's top priority. In order to solve the energy bottleneck problem, new energy industries such as photovoltaics have been given a more important position by European countries.

　　According to reporters, recently, Kadri Simson, head of the European Commission's energy department, said that the EU needs to bring solar manufacturing back to Europe, and the European Commission is willing to achieve this goal at all costs.

　　Qi Haishen, president of Beijing Teyi Sunshine New Energy, told China Economic Times that Europe's solar photovoltaic industry was once a global leader, boasting comparative advantages in advanced photovoltaic materials, sophisticated production equipment, and the photovoltaic power station market. Many of its technologies and processes surpassed those of my country. Europe attaches great importance to its renewable energy development strategy and has invested substantial subsidies in photovoltaic power generation for many years.

　　Some people believe that since my country is a major photovoltaic country in the world, the EU's large-scale shift to photovoltaics will strengthen the development of various photovoltaic industry chains in my country.

　　Qi Haishen believes that while Europe's photovoltaic manufacturing industry started early, it's undeniably high costs. Many aspects, including the supply chain, are incomparable to China's, especially in terms of cost. In this respect, the European and Chinese photovoltaic manufacturing industries are complementary.

　　my country's installed photovoltaic capacity has ranked first globally for seven consecutive years. Data from the National Energy Administration shows that in 2021, my country added approximately 53 gigawatts of grid-connected photovoltaic capacity, maintaining its global lead for the ninth consecutive year. By the end of 2021, China's grid-connected photovoltaic capacity reached 306 gigawatts, equivalent to the installed capacity of 13 Three Gorges power stations.

　　Currently, competition in my country's photovoltaic industry is becoming increasingly fierce. As countries around the world are determined to vigorously develop the photovoltaic industry, many domestic companies have also turned their attention to the international market. According to reporters, many companies have expressed that although the international market is large, it feels increasingly difficult to operate in it.

　　Qiu Wenxu believes that in China, where local industry protection regulations are gradually being introduced, many projects become difficult to implement when companies are labeled as "purely foreign-owned." In the long run, companies that thrive overseas must possess both internationalization and localization.

　　"Take the EU as an example. It will become increasingly difficult to solely undertake the construction of overseas photovoltaic power station projects and sell photovoltaic products. The EU will gradually introduce policies that are conducive to the protection of local industries. It is recommended that my country's leading photovoltaic companies can seize this opportunity and cooperate more with overseas governments. For example, they can participate in the entire process of overseas energy construction planning in the form of government-industry-research cooperation, and seize existing resources to create incremental ones." Qiu Wenxu further emphasized.

　　Qi Haishen believes that Chinese companies can leverage their scale advantages and combine them with the technological advantages and advanced production equipment accumulated by European photovoltaic companies over the years. This can lead to the establishment of joint ventures, production bases, and global supply chains. This presents a significant opportunity for the global development of Chinese photovoltaic companies. Rather than passively accepting or worrying about the barriers and sanctions imposed by rising trade protectionism, it is better to proactively join forces and achieve win-win development through complementary cooperation.

Disclaimer: The article is sourced from the China Economic Times.