In 2017, Jiangsu's new photovoltaic installed capacity of 3.61 million kilowatts of micro-profit era depends on technology and cost to win

The industry pointed out that after the rapid development of the photovoltaic industry in previous years, the macro goals of industrial development have been adjusted, and the development focus must shift from increasing the scale to improving quality and efficiency and promoting technological progress.

China's photovoltaic industry, which has added the world's largest installed capacity for five consecutive years, is about to usher in a new era of low parity and low profit.

On the morning of May 10, at the Third China Photovoltaics + Innovation Development Forum, Yi Yuechun, Vice President of the General Institute of Hydropower Planning and Design, and other industry figures pointed out that the photovoltaic industry has undergone rapid and rapid development in previous years. The macro goals of industrial development have been adjusted. The focus of development should shift from increasing scale to improving quality, efficiency and technological progress.

Jiangsu new photovoltaic installed 3.61 million kilowatts in 2017

Baoying County, where the forum was held, is hoping to take advantage of the opportunity to become a national "leader" photovoltaic base. With the county economic development zone as the core, it plans to build a photovoltaic manufacturing industrial park with an area of 3 square kilometers. In order to speed up the construction of advanced photovoltaic equipment manufacturing and application of the complete industrial chain, Sprint the nation's leading photovoltaic base.

Bao Ying County Party Committee Secretary Wangxiaoxiao introduced in the speech on the morning of the 10th. After vigorous development in recent years, the total installed capacity of power generation in Baoying County has exceeded 800 MW, and more than 200 MW has been built and connected. It has attracted a number of state-owned enterprises and industry leaders such as renewed new energy, Shanghai Jingke, and Huadian Group to invest in Baoying. "The PV application and manufacturing industry has become an important growth pole for Baoying's physical economy to innovate and develop, transform and upgrade. "

In the photovoltaic industry, it is often said that "global photovoltaic looks at China, and Chinese photovoltaic looks at Jiangsu." And Baoying, is the rapid development of Jiangsu photovoltaic industry is a microcosm.

Hanghai, director of the Jiangsu Provincial Energy Bureau, said at the aforementioned forum that over the years, Jiangsu Province has actively expanded the scale of renewable energy applications such as photovoltaic power generation, continuously optimized the energy structure, and promoted energy transformation.

In 2017, Jiangsu Province added 6.26 million kilowatts of renewable energy, accounting for 48 % of the new installed capacity in the province, becoming an important new component. Among them, PV added 3.61 million kilowatts, accounting for 6.8 % of the country's new photovoltaic volume. As of the end of last year, Jiangsu's cumulative photovoltaic installed capacity reached 9.07 million kilowatts, ranking third in the country. "This is a very good result for Jiangsu, which has a small land area and light resources in three areas. "Hanghai said.

Hanghai also revealed that in 2017, Jiangsu's renewable energy generation capacity was 321 million kilowatt-hours, an increase of 32 % year-on-year, accounting for 6.6 % of the province's total power generation, and achieved full cancellation. Among them, the photovoltaic power generation is 8.074 billion kilowatt-hours. "What is the concept of this electricity? Of the 31 provinces and municipalities in the country, more than last year's electricity consumption in the Tibet Autonomous Region and nearly one year's electricity consumption in Hainan Province. "

In fact, the entire PV industry has grown rapidly in 2017.

According to data from the National Energy Administration, in 2017, 53.06 GW was added to the National photovoltaic power generation, which exceeded Germany's total photovoltaic installed capacity in 20 years. Among them, the distribution added 1944 million kilowatts, an increase of 3.7 times year-on-year. Attracted by the subsidy policy of distributed photovoltaics, domestic photovoltaics companies have increased the construction of distributed photovoltaics projects since last year.

This trend continued into the first quarter of this year. Data show that the first quarter of new photovoltaic installed 9.65 GW, an increase of 22 % year-on-year, of which distributed photovoltaic 7.685 GW, an increase of 217 % year-on-year, and ordinary photovoltaic power station 1.97 GW, a drop of 64 % year-on-year.

The continuous and rapid growth of distributed and national photovoltaic production capacity has attracted the attention of the relevant national authorities. At the end of April's first-quarter conference held by the National Energy Administration, Lichuangjun, deputy director of the Department of New and Renewable Energy of the National Energy Administration, said: "China has added the world's first new photovoltaic power generation for five consecutive years. The focus of the development of photovoltaic power generation has shifted from increasing the scale to improving quality and efficiency and advancing technological progress. We need to devote more energy to advancing technological progress, reducing the cost of power generation, reducing the dependence on subsidies, strictly controlling the scale of development, and improving the quality of photovoltaic power generation. We will promote orderly and high-quality development of the industry. "

The age of small profits depends on technology and cost.

Under the multiple factors such as the expansion of PV leaders, the reduction of subsidies and the reduction of feed-in prices, the operating pressure of photovoltaic companies this year is greater than in 2017.

Polycrystalline component leader GCL integration (002506.SZ) released in the end of April 2018 report shows that the company achieved operating income of 2.021 billion yuan, down 18.38%; net loss attributable to shareholders of listed companies was 147 million yuan, down 16.91 year-on-year %.

Xie Xin Integration also stated in its 2017 financial report that "due to the strong demand in the photovoltaic market as a whole, manufacturers in the industry have expanded their production, the competition has become more fierce, and the market price of photovoltaic components has continued to fall. From about 3 yuan / watt in early 2017, it has dropped all the way to about 2.5 yuan / watt. The operating pressure of component companies is huge. "

With the improvement of photovoltaic production capacity and technology in China, component manufacturing has become an industry consensus in the era of micro-profit.

In 2017, the average net profit per watt of photovoltaic components was only about 1-5 cents, and most of them were in 1-3 cents. At three cents, China's 53 GW installation last year would have been worth only a billion dollars to the PV component company.

The 21st Century Economic Report reporter combed the 51 photovoltaic listed companies in the A-share quarterly report and found that a total of 40 companies achieved profits during the reporting period; However, if you use the net profit after deducting non-recurring profits and losses as a reference, only 38 profitable companies will achieve a net loss in the first quarter of the company's performance.

The slowdown in net profit growth and high inventory growth have become common pain points in the industry. Judging from the profits brought by the photovoltaic business to listed companies, Longji (601012. SH) continues to rank firmly in the first quarter of photovoltaic profits. Its first-quarter revenue and net profit from ownership were 3.47 billion yuan and 543 million yuan, respectively, an increase of 29 % and 24 % year-on-year; The net profit after deduction was 506 million yuan, an increase of about 20 % year-on-year. But growth has fallen sharply compared with the same period last year. In the first quarter of last year, net profit grew 65 percent year-on-year and 62 percent after deduction, both much higher than this year.

With the release of production capacity of some leading companies this year and intensified competition in the industry, Longji SHARES announced several price cuts in the first quarter in exchange for market share.

In addition to the advantage of low prices, the leading photovoltaic companies represented by Xiexin Integration, Longji and Tongwei Shares are increasing their R&D and construction of efficient solar cell business, hoping to rely on technological progress to reduce efficiency and win the market competition.

Tongwei shares of light and Volt business division president Chenxingyu told the forum on the 10th that the company had an efficient battery capacity of 6GW as of the end of last year. It invested in two new high-efficiency battery projects at the end of last year and is expected to achieve 10-12 GW capacity by the end of this year. The high-efficiency battery capacity of Tongwei shares will reach 30GW in the next three years.

"The PV industry should be issue-oriented and continue to solve the hot spots, difficulties, and bottlenecks faced by development, such as discards, land use and subsidies, through innovation-driven and cross-border integration. In his speech, Yi Yuechun and other industry figures pointed out that China's photovoltaic industry has undergone rapid and rapid development in previous years. At present, the macro goals of industrial development have been adjusted, and the development focus must shift from increasing the scale to improving quality and efficiency and promoting technological progress.

Yiyuechun emphasized that in the process of energy structural transformation, we must actively use big data technology to make good use of clean energy; We need to strengthen the guiding role of planning and ensure that power supply and power grids, and consumer markets are taken into account. In addition, we need to speed up technological research and innovation demonstration and do a good job in forecasting, forecasting, smart energy, and micro-power grids. We will strengthen institutional innovation in energy conservation, dispatch, quota systems, and the power market.

The page contains the contents of the machine translation.