Photovoltaic companies fail to grasp the core technology prospects

“China's photovoltaic industry would like to thank Wuxi and thank Suntech!” Shi Zhengrong, chairman of the Suntech Group, shook his head as always. Just last month, Suntech's stock price has fallen to the lowest level since its listing in 2005.

An industry insider who asked not to be named told reporters at the First Financial Daily: “The Chinese PV industry would like to thank the US and European markets, especially the European countries for their subsidy policy, which is that their market has given the Chinese PV industry a chance to thrive.”

In his view, in the European debt crisis to reduce PV subsidies, the United States wants to launch a "double anti-" survey, the Chinese PV industry is only back to the origin. Most Chinese companies have “three raw materials, technologies, and markets out there.” They are only Chinese workshops that are parasitic on the European and American markets and are keen to earn quick money.

The external tide that once promoted the industry’s development has finally retreated. What role the enterprises that were left on the beach played in this past feast has become more and more obvious.

This winter of PV companies is doomed to be long and heavy.

"Imported photovoltaics like cast clothing."

From the perspective of Wuxi, a large gathering place for photovoltaics in China, many companies use photovoltaics as an investment project rather than a continuous industry.

For them, the photovoltaic industry is like the garment industry, but the production line is more expensive. For example, a domestic production line costs about 40 million, and import lines are between 60 million and 80 million; even many companies rely on hoarding raw materials to make profits.

This time, the European and American markets suffered a heavy setback and the production lines invested by some companies sank. The price of raw materials that came along with them drastically dropped. This has also caused many companies that suffered heavy losses during the peak period in 2008 to suffer heavy losses.

For some large companies, these speculative foreign funders should have been eliminated.

According to Jiang Zhongwei, chairman of the Solar Energy Company, the development of the domestic photovoltaic industry on the southeastern coast is like the original "three-to-one" business.

“The eastern region is more an assembly plant. Driven by large companies such as Suntech, many small companies have entered and produced photovoltaic modules. Before the financial crisis, European and American markets were good, making money easy, and a large number of companies switched from the original textile and other major industries. ”

Jiang Zhongwei believes that photovoltaics are like once again investing in these companies that have been transferred from abroad.

The situation of the market has suddenly changed, and the small businesses that have turned this time have mostly fled.

In Wuxi, an industry company executive, it seems that “no core technology is a common problem in China's photovoltaic industry, and in an atmosphere of social impetuosity, everyone is thinking of seizing the market as soon as possible, and technology research and development is not paid attention to.” He also believes that “PV companies It's a heavy technology industry. A technical change is enough to subvert the entire industry."

An intuitive example is that, under the Great Depression, solar thermal companies have continued to grow strongly. “The solar thermal companies are directly facing consumer terminals, and they convert solar energy into thermal energy with high efficiency and strong resistance.”

"China's photovoltaic companies do not have the core technology and will eventually be subverted by technological progress. The market will make a choice." The company's CEOs told reporters.

To build "Sun City" has not returned

It's not just companies that are working at once, and building Sun City has once become an important development goal for many cities.

According to preliminary estimates, there are more than 20 local governments in the country that have established "PV industrial parks." A long-term investor in Wuxi investing in the photovoltaic industry said that in the past, small businesses could also help one. Today, a market value of Suntech is worth more than ten billion yuan. Where can the government help?

An industry insider explained to this reporter that the same photovoltaic industry park has differences. For example, many components and assembly plants are located in the east; some cities in the Mainland are rich in resources and are more focused on refining polysilicon, which is a high-energy-consuming process; areas with abundant power and coal resources start from the upper reaches; some areas with rich solar energy resources, There are already some photovoltaic power plants.

No matter whether it is in the east or the west, it is still increasing its investment. Wuxi is no exception. Our reporter found at a local new energy forum that even if the industry as a whole is depressed, the local government is still actively organizing investment promotion activities. A photovoltaic industry park worker who is responsible for the implementation of specific projects told this reporter: “Still, we are optimistic about the development of the industrial park. Many of the plant's factories are provided by us in advance construction.”

Behind the vigorous “City of the Sun” city-building movement is the overcapacity caused by large-scale deployment of the photovoltaic industry within a few years. In 2011, global photovoltaic demand is expected to be 22 GW, and global production this year has already exceeded 30 GW. Among them, China's PV module output accounts for 60% to 70% of global output.

A Datong government official in Beijing propagandizing for the PV Industrial Park told the reporter: “The depression is a depression, but like Datong, a region rich in coal resources, can support coal resources for polysilicon.” Foxconn and GCL-Poly announced earlier. Invested 90 billion yuan in Datong to create a vertically integrated photovoltaic power generation project.

The company also plans to establish a solar energy industrial park in the United States, and then go back to China for investment and move the manufacturers from the domestic industry to the United States.

The frenzy of investment has not been curbed because of the temporary setbacks of the market. Liu Zhibo, Vice President of Suntech Power, told this reporter: “In the past, the period of annual growth of 200% has passed. Any industry will experience twists and turns, but it does not mean that it will be bankrupt. Therefore, strengthening internal management by enterprises will surely survive the difficulties. ”

Local government-led investment boom may accelerate the reshuffle of the industry. "The price paid will certainly be great," said the manager of a Ping An Trust's infrastructure department.

Bright prospects hidden

Although the market is overcast, almost all people in the industry are optimistic about the prospects for the photovoltaic industry. “Solar energy is clean energy. As long as the sun rises every day, there will be inexhaustible energy,” said one industry source.

The National Development and Reform Commission introduced the photovoltaic power benchmark price in August this year. The external analysis is to start the domestic photovoltaic market and boost domestic demand. Experts believe that the benchmark price of 1.15 yuan per degree is insufficient to encourage the development of photovoltaic power generation.

At present, the western region is rich in solar energy resources, but it still faces the problem of electric power transportation. And the local government hopes to build a complete industrial chain locally, “rather than just assembling power plants, giving economic growth to the coastal areas.” An official of Shanxi Datong said so.

An insider of Trina Solar said that the benchmark price was limited, and the second rule was not clear. “Whoever is out of money and where it ends up is a problem. Let’s say the government now subsidizes all energy-saving emission reductions. Technology makes the advantages of solar energy less prominent."

Far-to-the-water is difficult to quench thirst. The current "winter" of the photovoltaic industry is still very real. A senior source in the energy field said that the price of electric power involves the problems of power grid companies and power reform, not that a single electricity price for photovoltaics can be solved.

In addition, the extraction of silicon is also a process of high energy consumption and high pollution. In the future, environmental protection standards are bound to become increasingly strict. This will also become a real problem.

For most companies, how to survive this winter is the most current concern. The payment cycle for the entire industry has been extended, "at least for more than a month." Said Suntech vice president said.