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Boost Development of China’s PV Industry Based on Positive Factors (No. 40, 2020)

Apr 08,2020

By Zhou Jianqi, Enterprise Research Institute, DRC

Research Report, No. 40, 2020 (Total 5784) 2020-3-17

Abstract: President Xi Jinping points out that China needs to optimize energy consumption, energy supply and institutional arrangements and advance energy technology and international energy cooperation. In line with his requirement, we need to focus on the development of new energy featured by power generation. Photovoltaic (PV) power generation is a typical type of new energy, especially the distributed PV power generation, which is promoting the global power generation with diversified sources, re-electric consumption and platform-oriented grid drive. China boasts the world’s largest scale of PV industry, enjoying advantages in global competition in terms of industrial chains and application technologies. But it needs to be noted that China’s PV industrial development has the following issues to be addressed. Basic PV technology is flawed with weak links in terms of research and development on the new generation of technologies; its industrial system is unsound and concentrated PV has developed fast whereas service development remains sluggish; the transaction mechanism needs further reform, and the pipe-grid needs a shift toward an intelligent platform of grid. To play a better role in global power transformation, relevant departments need to give support to PV basic technology researches, improve its industrial system, and shape a bilateral and flexible transaction mechanism in step with the distributed PV development.

Key words: PV industry, tripartite trend of development, advantages and problems, policy options