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Europe builds photovoltaic supply chain China's photovoltaic exports continue to grow
2023/7/24
"Europe's warehouses are full of Chinese photovoltaic modules." On the 20th, the American Quartz Finance Network quoted the research results released by the research company Rystad Energy. European spending on PV imports has almost quadrupled over the past five years. Some analysts said that Europe, which lacks a sense of energy security, is trying to build a photovoltaic supply chain, but the urgent demand prevents many companies from waiting so long.
The Energy Crisis Sweeps Europe
According to a report from Quartz Finance Network, after the Russian-Ukrainian conflict broke out in February last year, Moscow almost cut off the supply of natural gas to Europe, and Europe's fragile energy security was fully exposed. Seeking to reduce its dependence on Russian energy, Europe imported record amounts of photovoltaic modules last year. The EU is expected to stockpile 100 GW of PV modules by the end of 2023. Since 2023, China's monthly export volume of photovoltaic modules to Europe has been higher than that of the same period last year, and the export volume in March even increased by 51% year-on-year. According to data from the China Photovoltaic Industry Association, the total export volume of China's photovoltaic products in the first half of this year was preliminarily estimated to exceed US$29 billion, a year-on-year increase of about 13%. Europe, the largest market, accounts for about 50% of the total, with a growth rate of over 40%
Analysts at Rystad Energy also told Quartz Finance Network that fluctuations in the prices of solar cell raw materials in 2021 and 2022 have also stimulated European buyers to increase imports when they are relatively cheap. China's photovoltaic products are mainly sold to these European countries: the Netherlands, Spain, Germany, Poland and France.
A similar point of view has been corroborated by people in the photovoltaic industry in China. Qi Haikun, executive vice president of Jinchen Co., Ltd., an automated production line manufacturer of photovoltaic modules, told reporters on the 23rd that the energy crisis brought about by the conflict between Russia and Ukraine made Chinese photovoltaic module products very popular in Europe. As the price of silicon material fell around the Spring Festival this year, the price of photovoltaic module products fell, and the price advantage of Chinese products became more obvious.
Chinese enterprises have huge competitive advantages
Since 2022, blueprints such as the EU Green Deal Industrial Plan have set ambitious green energy development goals for Europe. German State Secretary Sven Gigold said that the EU will install 100 gigawatts of wind and solar energy systems every year, which is equivalent to building 17 football fields of photovoltaic power generation, 16 land wind turbines and 4 offshore wind turbines every day. German Economy Minister Habeck believes that this will trigger an investment boom in this field.
However, Europe's green energy dream is hard to realize on its own. Deutsche News Agency said that in terms of solar industry expansion, the EU is more dependent on China than it was on Russian natural gas in the past. Industry insiders said that in the process of rebuilding the solar energy industry in Europe, Chinese companies have huge advantages in cost and scale. The European solar industry currently has a combined annual module production capacity of 8 GW. According to an analysis by PwC, JinkoSolar, China's largest photovoltaic manufacturer, alone currently produces 45 gigawatts of photovoltaic modules annually. In terms of production costs, European companies are about twice that of Chinese companies.
Qi Haikun said that no country can match China's photovoltaic industry in terms of industrial environment, market environment, technology research and development, and capital investment. The United States is also attracting overseas companies to invest and build production capacity with huge subsidies.
The market game will become more intense
Despite being snapped up by many European countries, China's photovoltaic industry is not at ease. According to independent energy think-tank Ember, solar power generation in Europe rose by almost 11% year-on-year in the first half of this year. Qi Haikun predicted that the situation of China's photovoltaic products export to Europe is likely to change in the second half of the year. At present, the volume of photovoltaic products hoarded in Europe has increased sharply, and it will take some time to digest. The high growth of exports may slow down in the future.
At present, international competition in photovoltaic manufacturing is also intensifying. According to the forecast of the International Energy Agency, by 2027, China's market share in global photovoltaic manufacturing may drop from about 90% currently to 75%. Wei Fulei, deputy director of the New Energy and Low Carbon Development Research Center of the China (Shenzhen) Comprehensive Development Research Institute, believes that there is still a buffer period for Europe and the United States to promote the localization of the photovoltaic industry chain. Chinese photovoltaic companies should speed up the layout of the overseas industry chain and actively explore emerging markets outside Europe and the United States.
Bo Wenxi, chief economist of IPG China, told reporters that China's photovoltaic industry has great opportunities in markets such as Southeast Asia and Africa. Energy demand in these regions is growing, and government support for renewable energy is gradually increasing. Chinese enterprises can also promote the photovoltaic industry in countries along the “Belt and Road”, including cooperating with local enterprises to build photovoltaic projects, providing technical consultation and training and other support to help the development of the local photovoltaic industry.
The Energy Crisis Sweeps Europe
According to a report from Quartz Finance Network, after the Russian-Ukrainian conflict broke out in February last year, Moscow almost cut off the supply of natural gas to Europe, and Europe's fragile energy security was fully exposed. Seeking to reduce its dependence on Russian energy, Europe imported record amounts of photovoltaic modules last year. The EU is expected to stockpile 100 GW of PV modules by the end of 2023. Since 2023, China's monthly export volume of photovoltaic modules to Europe has been higher than that of the same period last year, and the export volume in March even increased by 51% year-on-year. According to data from the China Photovoltaic Industry Association, the total export volume of China's photovoltaic products in the first half of this year was preliminarily estimated to exceed US$29 billion, a year-on-year increase of about 13%. Europe, the largest market, accounts for about 50% of the total, with a growth rate of over 40%
Analysts at Rystad Energy also told Quartz Finance Network that fluctuations in the prices of solar cell raw materials in 2021 and 2022 have also stimulated European buyers to increase imports when they are relatively cheap. China's photovoltaic products are mainly sold to these European countries: the Netherlands, Spain, Germany, Poland and France.
A similar point of view has been corroborated by people in the photovoltaic industry in China. Qi Haikun, executive vice president of Jinchen Co., Ltd., an automated production line manufacturer of photovoltaic modules, told reporters on the 23rd that the energy crisis brought about by the conflict between Russia and Ukraine made Chinese photovoltaic module products very popular in Europe. As the price of silicon material fell around the Spring Festival this year, the price of photovoltaic module products fell, and the price advantage of Chinese products became more obvious.
Chinese enterprises have huge competitive advantages
Since 2022, blueprints such as the EU Green Deal Industrial Plan have set ambitious green energy development goals for Europe. German State Secretary Sven Gigold said that the EU will install 100 gigawatts of wind and solar energy systems every year, which is equivalent to building 17 football fields of photovoltaic power generation, 16 land wind turbines and 4 offshore wind turbines every day. German Economy Minister Habeck believes that this will trigger an investment boom in this field.
However, Europe's green energy dream is hard to realize on its own. Deutsche News Agency said that in terms of solar industry expansion, the EU is more dependent on China than it was on Russian natural gas in the past. Industry insiders said that in the process of rebuilding the solar energy industry in Europe, Chinese companies have huge advantages in cost and scale. The European solar industry currently has a combined annual module production capacity of 8 GW. According to an analysis by PwC, JinkoSolar, China's largest photovoltaic manufacturer, alone currently produces 45 gigawatts of photovoltaic modules annually. In terms of production costs, European companies are about twice that of Chinese companies.
Qi Haikun said that no country can match China's photovoltaic industry in terms of industrial environment, market environment, technology research and development, and capital investment. The United States is also attracting overseas companies to invest and build production capacity with huge subsidies.
The market game will become more intense
Despite being snapped up by many European countries, China's photovoltaic industry is not at ease. According to independent energy think-tank Ember, solar power generation in Europe rose by almost 11% year-on-year in the first half of this year. Qi Haikun predicted that the situation of China's photovoltaic products export to Europe is likely to change in the second half of the year. At present, the volume of photovoltaic products hoarded in Europe has increased sharply, and it will take some time to digest. The high growth of exports may slow down in the future.
At present, international competition in photovoltaic manufacturing is also intensifying. According to the forecast of the International Energy Agency, by 2027, China's market share in global photovoltaic manufacturing may drop from about 90% currently to 75%. Wei Fulei, deputy director of the New Energy and Low Carbon Development Research Center of the China (Shenzhen) Comprehensive Development Research Institute, believes that there is still a buffer period for Europe and the United States to promote the localization of the photovoltaic industry chain. Chinese photovoltaic companies should speed up the layout of the overseas industry chain and actively explore emerging markets outside Europe and the United States.
Bo Wenxi, chief economist of IPG China, told reporters that China's photovoltaic industry has great opportunities in markets such as Southeast Asia and Africa. Energy demand in these regions is growing, and government support for renewable energy is gradually increasing. Chinese enterprises can also promote the photovoltaic industry in countries along the “Belt and Road”, including cooperating with local enterprises to build photovoltaic projects, providing technical consultation and training and other support to help the development of the local photovoltaic industry.
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