China’s photovoltaic power market and industry outlook: 2020

The Notice on Matters Related to Photovoltaic Power Generation in 2018 (Policy 531) released in 2018 has made the domestic market and product prices fall rapidly, corporate profitability continues to be at a low level, and industry development has plummeted.

After the rapid development of China’s photovoltaic power generation industry in 2013-2017, it experienced an industry trough in 2018.

The Notice on Matters Related to Photovoltaic Power Generation in 2018 (Policy 531) released in 2018 has made the domestic market and product prices fall rapidly, corporate profitability continues to be at a low level, and industry development has plummeted.

However, affected by policies, the industry has gradually shifted from pursuing extensive growth and large-scale development in the past to pursuing quality now.

1. China’s photovoltaic power generation construction slows down

Although China’s solar photovoltaic industry started late, it has developed rapidly. Especially since 2013, driven by the policies of the country and various regions, solar photovoltaic power generation has shown explosive growth in China.

According to statistics from the National Energy Administration, in 2017, China’s new installed capacity of photovoltaic power generation was 53.06GW, a record high. In 2018, under the influence of Policy 531, new photovoltaic power generation projects in various regions declined. The new installed capacity for the whole year was 44.26GW, a year-on-year decrease of 16.6%.

In 2019, the newly installed installed capacity of photovoltaic power generation nationwide was 30.11GW, a year-on-year decrease of 31.6%, of which 17.91GW was added for centralized photovoltaics, a decrease of 22.9% year-on-year; 12.20GW for distributed photovoltaics was installed, a decrease of 41.8% year-on-year.

In terms of cumulative installed capacity, according to statistics from the National Energy Administration, since 2013, the cumulative installed capacity of photovoltaic power generation in China has grown rapidly.

In 2013, the cumulative installed capacity of photovoltaic power generation nationwide was only 19.42GW, and by 2019 it had grown to 204.3GW. From 2013 to 2019, the cumulative installed capacity of photovoltaic power generation nationwide exceeded 10 times.

With the recent national policy preference towards distributed photovoltaic power generation, the structure of China’s photovoltaic power generation market has undergone significant changes.

Especially since 2016, with the rapid development of distributed power generation, its cumulative installed capacity share has continued to increase. By 2019, the market share of China’s cumulative installed capacity of distributed photovoltaic power generation has increased to 30.7%, exceeding 30% for the first time.

2. The supply and demand of China’s photovoltaic power generation industry continues to increase

According to statistics from the National Energy Administration, since 2013, China’s photovoltaic power generation has grown rapidly.

In 2013, the national photovoltaic power generation capacity was only 9 billion kWh. By 2018, the national photovoltaic power generation capacity was 177.5 billion kWh, an increase of 50% year-on-year. The average utilization hours were 1115 hours, an increase of 37 hours year-on-year.

Among the regions with higher average utilization hours of photovoltaic power generation, 1617 hours in western Inner Mongolia, 1523 hours in eastern Inner Mongolia, 1460 hours in Qinghai, and 1439 hours in Sichuan.

In 2019, the national photovoltaic power generation reached 224.3 billion kWh, an increase of 26.3% year-on-year, and the number of photovoltaic utilization hours was 1169 hours, an increase of 54 hours year-on-year.

As a major power producer and power consuming country, China has continued to increase its power consumption throughout the society in recent years.

According to the data released by the National Energy Administration on the electricity consumption of the whole society in 2019, in 2019, the electricity consumption of the whole society was 7.2255 trillion kWh, a year-on-year increase of 4.5%.

In terms of industries, the electricity consumption of the first industry was 78 billion kWh, an increase of 4.5% year-on-year; the electricity consumption of the second industry was 4,9362 billion kWh, an increase of 3.1% year-on-year. The electricity consumption of the tertiary industry was 1,186.3 billion kWh, an increase of 9.5% year-on-year.

The daily electricity consumption of urban and rural residents was 1.025 trillion kWh, a year-on-year increase of 5.7%.

Disclaimer: This is an article created by Michael Liang for Chinasdg.org. You can find the original article here: https://chinasdg.org/2020/07/08/china-s-photovoltaic-power-market-and-industry-outlook-2020/.

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