The SEMI PV Group announced theavailability for “China’s Solar Future,” a preliminary reportcontaining specific recommendations for a China photovoltaic (PV)policy roadmap.
As the world’s fastest growing developingcountry, China faces a rapidly increasing demand for energy and thecountry has also been building a massive PV industry representing allfacets of the supply chain, from polysilicon feedstock, ingots andwafers to cells and modules. Virtually all of this PV production hasbeen exported.
Thereport was prepared by the China PV Advisory Committee, organized bythe PV Group, and comprised of China PV industry and academic leaders.The China PV Advisory Committee objective is to collectively define andaddress issues facing the region’s PV industry, and petition the Chinagovernment for PV legislation, policy and financial support.
Currently,consumption of coal and other fossil fuels has a central role inChina’s economy, and the region derives almost 70 percent of its energyfrom it. The use of fossil fuels has a negative impact on theenvironment in China; generating massive amounts of carbon dioxide, andaccording to the World Bank, by 2020, the external costs of using coalwill reach 13 percent of China’s GDP.
This comes as a resultof the steady increase in China’s energy demand. On the supply-side, in2010 by some estimates, after accounting for coal, hydro, and nuclearpower, there could be a 6.4 percent shortage in electrical supply,which will need to be filled by renewable energy.
“China is justnow beginning to understand the global opportunities and implicationsof PV products and systems, and it is creating a massive PV industryrepresenting all areas of the supply chain,” said Dan Martin, executivevice president of the SEMI PV Group. “In fact, the ramp up has been sosignificant that in 2007, China took the number one spot in solar cellmanufacturing with a total production of over 1GW, and in 2008, theregion doubled that production. It is important that China occupy aleading position in the demand for solar power, as well as contributeto global supply,”
According to the report, even with themassive solar cell production in China, the region faces toughchallenges as its PV industry grows. A key issue is the major imbalancebetween domestic production and domestic consumption, as 98 percent ofChina’s PV products are shipped to overseas markets.
Othersignificant challenges include China’s lack of world-class productiontechnology for high-purity silicon and Chinese PV industry reliance onimported technology and equipment, as well as a lack of sufficientfunds for R&D.
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