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Equipment Selection for “PV Top Runner” Base is Coming and JINERGY QIAO Kai Talks about the Development of PV Market from Three Perspectives

PV industry is becoming a major pillar in energy transformation of Shanxi Province. Shanxi Province is being devoted to pushing a rapid development in PV industry, with “PV Top Runner” Base of coal-mining subsidence land as support and taking the opportunity of currently explosive development of renewable energies. Relevant data showed that, the overall installed capacity of PV industry in Shanxi was 910,000 KW by the end of 2015, indicating a year-on-year growth of 184.38% and the capacity of PV electricity generation of 141%. Meanwhile, about 5,000 km² coal goaf and 3,000 km² coal-mining subsidence land provide sufficient space for Shanxi’s PV industry development.

China’s PV projects construction scale in 2016 has been specified. Shanxi “Top Runner Program” obtained an additional 1.5GW capacity. Therefore, together with 3GW planned and approved previously, the total capacity of Shanxi “Top Runner” Base is 4.5GW, signifying favorable and tremendous prospects in PV industry. This April, Shanxi Provincial Government released 2016 Shanxi Action Plan for National Comprehensive Coordinated Reform and Experiment for the Transformation of Resource-Based Economy and definitely listed Datong’s PV projects construction on the coal-mining subsidence land as a significant issue. Shanxi is determined to adjust the coal-resources-dominated industry structure by virtue of PV industry development.

Despite a rather late start, the Shanxi’s huge market potential is motivating local enterprises to reserve strength and gain momentum to develop PV business. As a local comprehensive energy group, Jinneng Group is also proactively marching toward PV market to support the industrial transformation of Shanxi Province from black coal resources to green energy. Jinneng Clean Energy Technology Ltd. (hereinafter referred to as JINERGY) was founded on 31 December 2013. As a driving force of Jinneng Group clean energy business sector, it has been committed to become the world’s leading PV manufacturer and clean energy provider. The average efficiency of high-efficiency polycrystalline silicon solar cells produced by JINERGY has exceeded 18.8% and the mass production of 270W “Top Runner” polycrystalline modules is available. JINERGY will furtherly launch high-capacity monocrystalline PERC PV modules and super high-efficiency heterojunction modules.

China (Shanxi) PV Industry Development and Innovative Application Forum 2016, with the theme of “Innovative Top Runner Technologies for Creative Application of PV Industry”, was held in Taiyuan on 16 June. On the forum, intensive discussions about Shanxi PV industry development were carried out. QIAO Kai, Marketing Director of JINERGY, attended the discussion of “Equipment Selection for ‘PV Top Runner’ Base” as a guest speaker, he also introduced JINERGY’s experience in planning and executing “Top Runner Program” and shared his opinions on the future development of PV market.

It demands for further improvement in the basic scientific indicator system of “Top Runner Program”

JINERGY has always been a major supplier of high-efficiency PV modules in Shanxi and taking “production, research & development and reserve” as core strategy. By the end of 2015, its average conversion efficiency of high-efficiency polycrystalline cells has surpassed 18.8%, and the test efficiency of monocrystalline PERC cells has reached 21.36%, greater than the average efficiency of 20.6%~20.9% achieved through similar technologies of the whole industry; While the key technology index specified in Datong “Top Runner” Base requires the IPCE of polycrystalline silicon cells & modules and monocrystalline silicon cells & modules higher than 16.5% and 17% respectively. It can tell that the production capacities of both polycrystalline and monocrystalline PV modules of JINERGY have reached advanced world levels. During the construction of Datong “Top Runner” Base, JINERGY acts as the equipment supplier to provide high-efficiency PV modules for Datong Coal Mine Group, CECEP etc..

According to QIAO Kai, the assets in the clean energy sector of Jinneng Group have been increasing in a rapid speed in last two years, from less than RMB 1 billion in 2013 to over RMB 12 billion by the end of 2015, representing a growth rate of more than 10 times. It is estimated that the assets in the clean energy sector of Jinneng Group will exceed RMB 20 billion by the end of 2016. All these embody Jinneng Group’s enormous input and efforts in developing clean energy sector.

At the same time, QIAO Kai also talked about the requirements for equipment manufacturers. At present, the entry criteria for equipment into “Top Runner” Base are designed in a scientific way. But there are only specific requirements on the efficiency of PV products, technical requirements such as the ability against PID have not been strictly defined yet. PV technologies have a lot of room for further improvement, and indicator system of “Top Runner” Base demands to be improved likewise.

We need to find new ways for power stations investment on account of obvious cut in LCOE with high-efficiency modules

Increased conversion efficiency and reduced LCOE are keys to replacing traditional resources with PV energy. For power stations investors, more profits and less LCOE are the only effective means to obtain more returns. In short, they desire to broaden sources of income and reduce expenditure.

Before the launch of “Top Runner” Base, reducing investments and expenditures is the only way for investors to earn more profits. The blind pursuit for low price shall be blamed as it results in intermingled well-built and badly-built power stations in terms of quality.

The launch of “Top Runner Program” changes the case. The State aims to achieve an overall development in PV industry covering production, manufacturing, application, standard, testing and other factors, by supporting the development of Top Runner and eliminating unqualified operators in PV industry. In the meantime, Top Runner technical indicators are conducive to stimulate the enthusiasm for innovation in PV enterprises and lead the development of domestic PV industry from low-end to high-end with both high-quality and high-quantity. This program also lets power station investors learn the fact that greater efficiency in electricity generation with the application of high-efficiency PV modules bring about greater profits.

QIAO Kai put forward that the application of high-efficiency PV modules is capable of cutting LCOE dramatically by virtue of JINERGY’s rich experience in investing power stations. And it has been proved to be right in many projects. Though the production cost of high-efficiency PV module is higher than that of conventional module, the former, in its optimum condition, is able to reduce LCOE to below RMB 0.7. With new technologies applied, the efficiency of cells can rise to 22%~23%, while LCOE decreasing greatly. Power station investors shall follow the development trend of PV industry and change their thinking in investment by applying high-efficiency products so as to earn profits from improved efficiency of electricity generation. JINERGY has now achieved an output rate of 270W polycrystalline PV modules with better technical features than the requirements of Top Runner Program over 80%. Comprehensive quality certification, secured linear power, outstanding anti-PID and weather resistance are the assurance to the long-term stable operation and a high ROI of power stations. As a leading enterprise in the local, JINERGY has maintained an absolute and advantageous competitiveness by virtue of its geological strength (low cost of transportation), progressive R&D of new products and leading capacity of high-efficiency PV modules in mass production.

The price of high-efficiency modules drops this year owing to sufficient supplies

In 2016, the size of PV projects constructed all over China is 18.1GW and that of the planned Top Runner Program is 5.5GW. Adding the capacity of distributed PV power stations under planning and PV poverty alleviation project not yet released, the total size of domestic PV projects in 2016 will exceed 20GW. Domestic PV market has run into a shortage of high-efficiency PV modules in 2015, causing a price boosting of PV modules and discouraging the power stations investors to purchase high-efficiency PV modules.

QIAO Kai indicated that the downward in on-grid electricity price would lead to decrease in the cost of EPC project as prices were determined by demand and supply on market. He also pointed out that the price of PV modules will drop in the second half to a level lower than that in 2015, even it may rise a little in a short term. 

“Cost of raw material mainly determines the price of PV modules. In 2015, the price of PV module was going up due to the price increase of silicon chip. So far, the price of silicon chip continues to drop, and the price of PV module will definitely decline in the second half of the year,” QIAO Kai mentioned. “This year has witnessed a more sufficient supply of high-efficiency PV modules on the market. The State Government has approved an overall capacity of 5.5GW for Top Runner Program, indicating that relevant state departments are fully convinced PV module manufacturers’ preparation for development.

Moreover, QIAO Kai stressed that it is an inevitable trend to reach ultimate grid parity with a cut in electricity price year by year until no subsidies. Power stations investors shall stay rational in making investment and broaden the source of profits prior to reduce costs. Continuous efforts in innovation are the only way for equipment manufacturers to adapt themselves to current development trend. In the future, PV market will release greater potential with the joint development of PV industry enterprises.