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For this year's PV industry, which has suffered severe damage due to the “double reverse†investigation by the EU and the United States, the country is currently studying and formulating relevant supporting policies. After vigorous development in the past ten years, China has become a big country in the international photovoltaic manufacturing industry, with a production capacity of more than 60% of the world. However, since the first half of 2011, China's photovoltaic manufacturing companies have had a severe excess production capacity and have fallen into a large area of ​​loss and production suspension.
In fact, the end-market demand of the photovoltaic industry is still growing steadily. The data shows that the global demand in 2012 maintained a growth rate of approximately 20% compared with 2011. The reason why the photovoltaic industry has entered a predicament is, from a deeper perspective, that it has only focused on capacity expansion over the past few years and neglected technological upgrading. This has led to low technical barriers for the photovoltaic industry, which has made it easier for other investors to enter and has hidden potential risks for subsequent overcapacity. Imagine that even today, local governments even if they want to strongly encourage the production of technologically-threshold products such as Apple's mobile phones, will there be results in boosting it? Not at all! Therefore, the way the PV industry has followed these years also deserves the deep thinking of any other emerging industry in China!
In the face of the severe situation in the current industry, while the State is making great efforts to increase the installed capacity of photovoltaic power plants to support current production, it is more important to consider the following aspects in policy formulation:
First, we must support companies with real innovation capabilities. The technological upgrading of the photovoltaic industry in recent years has come from the transfer of laboratory technology to industrialization. Thanks to the advancement of equipment technology and the advancement of materials technology, large-scale production has become possible, and battery technology itself has not been significantly improved. Many technologies have solidified into production equipment, that is, whoever buys equipment can produce similar products, with little difference. Therefore, companies must have their own unique technical characteristics and advantages, and maintain low costs, in order to open the gap with their peers.
Second, support enterprises with advanced production capacity. As the industry is currently facing serious excess capacity, it must allow the market to choose to eliminate backward production capacity. Even if the current leading enterprises with large production scales, they must correctly distinguish between the backward production capacity that has been used for a relatively long time and the advanced production capacity that has room for improvement. If the technical upgrading of backward equipment is difficult and costly, these backward production capacities should be resolutely eliminated. Integrating advanced production capacity is the only way to truly support the photovoltaic industry.
The third is to encourage companies with a sense of social responsibility and mission. The life guarantee of photovoltaic products is not less than 25 years. Under the current environment of low cost, some companies do not have such quality assurance capabilities and may run away after quality problems occur, which will cause great harm to the industry. Therefore, the photovoltaic industry needs companies with social responsibility and long-term sense of mission to lead the development of the industry.
Fourth, we must encourage various forms of cooperation. The photovoltaic industry was destined to become an internationalized industry from the beginning of its development. This is true for materials supply, equipment supply, and markets. In addition to domestic cooperation, we encourage domestic enterprises to cooperate with foreign advanced companies, especially in the field of silicon materials. The international counterparts have long-term technical accumulation and professional management experience.
Photovoltaic solar energy will continue to be one of the important sources of energy for the future of mankind. We must learn useful lessons from failures and create a healthy environment for future development. Zhang Fengming (The author is a professor at the School of Physics, Nanjing University)
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