SEMI PV Group recommendations for China PV policy roadmap

SHANGHAI, CHINA: The SEMI PV Group announced the availability for “China’s Solar Future,” a preliminary report containing specific recommendations for a China photovoltaic (PV) policy roadmap.

As the world’s fastest growing developing country, China faces a rapidly increasing demand for energy and the country has also been building a massive PV industry representing all facets of the supply chain, from polysilicon feedstock, ingots and wafers to cells and modules. Virtually all of this PV production has been exported.

The report recommends an accelerated adoption of PV generated electric power in China to reach global average level of PV power generation by 2014.

The report was prepared by the China PV Advisory Committee, organized by the PV Group, and comprised of China PV industry and academic leaders. The China PV Advisory Committee objective is to collectively define and address issues facing the region’s PV industry, and petition the China government for PV legislation, policy and financial support.

Currently, consumption of coal and other fossil fuels has a central role in China’s economy, and the region derives almost 70 percent of its energy from it. The use of fossil fuels has a negative impact on the environment in China; generating massive amounts of carbon dioxide, and according to the World Bank, by 2020, the external costs of using coal will reach 13 percent of China’s GDP.

This comes as a result of the steady increase in China’s energy demand. On the supply-side, in 2010 by some estimates, after accounting for coal, hydro, and nuclear power, there could be a 6.4 percent shortage in electrical supply, which will need to be filled by renewable energy.

“China is just now beginning to understand the global opportunities and implications of PV products and systems, and it is creating a massive PV industry representing all areas of the supply chain,” said Dan Martin, executive vice president of the SEMI PV Group. “In fact, the ramp up has been so significant that in 2007, China took the number one spot in solar cell manufacturing with a total production of over 1GW, and in 2008, the region doubled that production. It is important that China occupy a leading position in the demand for solar power, as well as contribute to global supply,”

According to the report, even with the massive solar cell production in China, the region faces tough challenges as its PV industry grows. A key issue is the major imbalance between domestic production and domestic consumption, as 98 percent of China’s PV products are shipped to overseas markets.

Other significant challenges include China’s lack of world-class production technology for high-purity silicon and Chinese PV industry reliance on imported technology and equipment, as well as a lack of sufficient funds for R&D.