China's PV overcapacity is still serious

“Despite the continuous improvement of the external environment for industrial development, the industry is optimistic about the recovery of China's PV industry. However, from the current industrial chain of China's PV industry, whether it is upstream manufacturing or downstream power station development, the contradiction of overcapacity is still very prominent.” Deloitte China Jin Lingyun, managing partner of the cleantech industry, said. On the 5th, Deloitte's "2013 China Clean Technology Industry Survey Report" (hereinafter referred to as "Report") was released.

The "Report" pointed out that due to the previous serious surplus situation has not been fundamentally changed, the overcapacity of China's entire PV industry chain in 2013 is still very serious. The data shows that since the first half of 2013, the domestic PV industry has a capacity of 40GW and the actual shipments are only 11.5GW, which means that the structural overcapacity situation is still obvious.

From the perspective of downstream power station development, the current power station construction enjoys a series of direct fiscal and tax benefits such as electricity price subsidies and halving of value-added tax, and the investment return rate can maintain above 10%, resulting in the development of power stations entering the blowout stage. The data shows that the current announced intentions, contracting and PV projects under development have reached 130GW, even more than three times more than the newly formulated “Twelfth Five-Year Plan” target of 35GW installed in 2015. The problem of potential overcapacity cannot be ignored.

On August 30, 2013, China announced the on-grid tariffs for large-scale power stations and distributed PV on-grid tariffs. The large-scale power plants are divided into three types of resource zones, which respectively implement the electricity price standard of 0.99 yuan, 0.95 yuan, and 1 yuan per kWh. The price subsidy standard for distributed photovoltaic power generation projects is 0.42 yuan per kWh.

“Compared with the previous expected minimum price of only 0.80 yuan / kWh, the latest PV large-scale power station subsidies are more than expected. In addition, the electricity price subsidy has defined 20 years of subsidy time, and the long-term investment in photovoltaic power plants is undoubtedly the largest. Good guarantee." Wang Yi, chief financial officer of Yingli Green Energy Holdings Co., Ltd. said.

Under the policy incentives, the investment field of China's solar power plants is heating up. Solar photovoltaic manufacturing enterprises have infiltrated into the downstream of the industry value and invested in the construction of power stations. Large state-owned energy companies such as Guodian Group, China Huadian, and SDIC Group have also entered the field of solar energy investment through cooperation or independent construction.

In addition to the increasing number of investment projects, the installed capacity is also rising. The planned installed capacity of the photovoltaic grid-connected power station in the Qaidam Basin in Haixi Mongolian Tibetan Autonomous Prefecture of Qinghai Province has reached 1GW; the planned installed capacity of the Inner Mongolia Daqi trough solar thermal power generation project has also reached 550MW. In addition to state-owned enterprises, private enterprises are also actively deploying solar power plants. In 2013, Zhenfa New Energy was successfully connected to the 100W M inclined single-axis adaptive day tracking photovoltaic power generation unit invested in the Xipo area of ​​Jinchang, Gansu.

In addition, due to the NDRC's subsidy tariff method, the district benchmark on-grid tariff policy applies to the filing (approval) after September 1 this year, and the filing (approval) before September 1. However, for photovoltaic power plant projects put into operation on or after January 1, 2014, the owners who have already been approved must complete the construction of large power plants by the end of the year to determine that they have better electricity prices, which will also stimulate the owners to the photovoltaic cells. The demand for components and inverters, the price adjustment method will bring a short-term photovoltaic large-scale power station rushing. In the long run, the external environment of the photovoltaic industry has improved, and the internal support policies have become clearer and more stable. The Chinese PV application market will usher in a new round of industrial expansion. Jin Lingyun said.

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