China’s solar power installations are expected to “surge” this year, with “the projected new installed capacity being raised from 95-120 gigawatts (GW) to 120-140GW”, according to data released by the China Photovoltaic Industry Association (CPIA), China Daily reported. By comparison, new solar installation in the US was 20GW in 2022.
The upgraded forecast came as data from China’s National Energy Administration showed solar growth in the first half of 2023 reaching 78GW, pushing total solar capacity to 470GW. Meanwhile, exports of solar equipment in the first half of the year exceeded 207.8bn yuan ($29bn), a 13% year-on-year increase, Chinese financial outlet Caixin reported.
Experts said the revision reflects the industry’s bullish outlook throughout the year, as it strives to maintain its dominant position on the global stage.
Several leading photovoltaic companies are anticipating a doubling of their net profits in the first half.
PV facility company Eging PV Technology Co Ltd, in particular, leads the pack with its net profit projecting to soar 1,086 to 1,255 percent to 280 to 320 million yuan ($38.97-$44.54 million).
Major Chinese PV player Jinko Solar Co also revealed its half-year performance forecast, estimating a 304.38 to 348.58 percent year-on-year surge in net profits, which is expected to reach between 3.66 and 4.06 billion yuan.
Jiang Yali, a solar analyst at energy research provider BloombergNEF, said that China holds a dominant position in the global photovoltaic supply chain, accounting for more than 75 percent of its total output. She said China benefits from a comprehensive life cycle supply chain in PV facility manufacturing, and technological advancement has led to significant cost reductions, solidifying the country’s leading role in the global PV supply chain.
Wang Bohua, the honorary chairman of CPIA, said that several uncertainties, including the integration of solar power into the grid, electricity marketization and infrastructure construction, might pose challenges and make market predictions more complex.
- China Daily, 2023-07-20. https://www.chinadaily.com.cn/a/202307/20/WS64b8e395a31035260b8178eb.html
- Carbon Brief, China Briefing email newsletter, 27 July 2023. <firstname.lastname@example.org>