China’s Sunny Future

The
SEMI PV Group has 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.