News

Explosive Growth for PV in China

March 19, 2006 by Jeff Shepard

ENF Ltd. has just released a report showing that the Chinese photovoltaics (PV) market undergoing explosive growth levels. In 2005, cell production increased by +179% over the previous year, and has increased by triple digit growth in the previous two years. Panel sales have also increased sharply, rising +136% in 2005, which follows on from growth of over +300% the previous year.

Among the reports key findings are; European companies produced 556MWp of PV cells and 616MWp of PV panels in 2005, Chinese companies produced 139MWp of PV cells and 375MWp of PV panels in 2005. And production levels would have been even faster if not for the materials shortages plaguing the global PV industry.

Many cell and panel companies told ENF that they were suffering from a severe shortage of wafers or cells. A lot of European companies have been unable to sign fixed contracts, and simply have open contracts where they must wait and see each month whether their suppliers have available material to offer them. The material shortage is also very strong among Chinese companies, and some have had to drop their own branded panel production and turn to making OEM panels at a fixed margin for international companies (which at least ensures their material supply).

A few companies in both Europe and China are even buying up the material chain in order to secure their material supply. For example, several panel manufacturers are buying ingots and wafers, and making deals with cell manufacturers to convert the material into cells.

Based on ENF's interviews with Chinese manufacturers, such high levels of growth look set to continue in 2006, making China a more and more important player in the global market. Despite the current material shortage, there is still a lot of confidence among the Chinese manufacturers and among investors. This confidence is fuelling continued capacity growth, and increasing China's future impact on the international market.