The domestic photovoltaic industry continues to advance

Sinochem New Netnews Although the “overflow theory” of the domestic photovoltaic industry has always existed, the domestic photovoltaic giants did not slow down the pace of capacity expansion.

A few days ago, Yingli Group, the domestic photovoltaic giant, started construction at the base of Ninghe, Tianjin, and the project has invested more than 10 billion yuan. At present, Yingli Group has formally established a subsidiary company in Binhai High-tech Zone and plans to establish a regional headquarters at the headquarters of Zhanglong Lake in Binhai Hi-tech Zone.

It is reported that the base's recent production capacity will reach 300MW, and the long-term production capacity will reach 1GW or more. If we count the newly signed Hengshui base this year, Yingli Group's production capacity will reach 3GW by the end of 2012.

Earlier this year, Yingli Group's production capacity reached 1GW, and it is expected that by the end of 2011, this capacity will reach 1.7GW or more. A responsible person of Yingli Group revealed at the opening ceremony of the above-mentioned Ninghe Base in Tianjin that it is expected that Yingli’s capacity will reach 6.5GW in 2015.

In the most recent year, the solar photovoltaic industry has gradually established its factories in different places, in addition to Yingli. In August 2010, LDK Solar also came out of Jiangxi and announced the construction of a 1GW solar cell production base in Hefei. Last month, another Hebei company, JA Solar, announced that it had stepped out of Hebei and built a 3 GW solar cell production base in Hefei.

Suntech Power, a leader in the photovoltaic industry, already has four manufacturing bases in Wuxi, Shanghai, Qinghai, and Luoyang throughout the country. As for the overseas plant construction, after Suntech announced that its US plant was completed and put into operation at the end of last year, Artes Solar recently stated that its annual output of 300MW solar cell plant in Ontario, Canada, is near completion and production.

However, there have been new changes in the global supply and demand relationship for photovoltaics in 2011. On the demand side, a number of mainstream institutions have forecasted that this year's global demand will increase by about 30% year-on-year, and the growth rate will slow down significantly. On the supply side, due to the shortage of supply in the market last year, component manufacturers began ramping up production in the second half of 2010, and the production cycle of the components was only 6-12 months. It is expected that most of the production capacity will be put into production this year.

CICC even expects that the global component production capacity by the end of 2011 may exceed 40 GW. Compared with the estimated total global demand of 19-24 GW, this year's PV market has a significant imbalance in supply and demand.

Or because of this, the next competition in the domestic photovoltaic industry will be even more tragic, only a brand with good and low cost photovoltaic companies can survive.