Why the future of the photovoltaic industry has come?

Photovoltaic is the type of power generation with the fastest cost decline in the past 10 years

From 2009 to 2019, the cost per kilowatt-hour of photovoltaics dropped by 89%. In 2019, the average cost of photovoltaic power is 40 cents/kWh, which is already one of the lowest-cost power sources of all types. In 2019, the electricity price of PV bidding projects in Portugal and the UAE has been lower than 2 cents/kWh, which is lower than the 3.7 cents/kWh in Xinjiang, the province with the lowest coal-fired benchmark electricity price in my country.

Global photovoltaics have entered the era of parity, and demand has grown rapidly

The share of global photovoltaic power generation is still relatively low,and is currently expected to account for less than 5%. Driven by parity, the global photovoltaic installed capacity is expected to increase nearly 13 times in the next 30 years, with a cumulative installed capacity of 8440 GW, with a compound annual growth rate of about 9%.

The combination of affordable photovoltaics with energy storage will bring long-term and sustainable development momentum to the industry. It is estimated that 368 GW of global photovoltaic installations will be added in 2025.

Global photovoltaics look to China, the concentration continues to increase

By the end of 2019, the production capacity of all links in China's photovoltaic industry chain is absolutely leading in the world, and the silicon wafer link accounts for up to about 94%. There is no doubt that the core technology of photovoltaics is in China, and the best companies are in China.

According to public information statistics, from the beginning of the year to the end of August, a total of 49 domestic photovoltaic companies announced their expansion plans, involving a total investment of nearly 300 billion yuan, and the production capacity of each link was about 664 GW.

From the perspective of the industrial chain, batteries and modules are still the main force for expansion, especially batteries, both in terms of production capacity and investment quota, are much higher than other links.

In fact, the advent of parity forces companies to continue to innovate, quickly update iterative technology, and quickly replace old production capacity with new production capacity is also the current norm. After the photovoltaic industry has undergone rounds of reshuffles, leading companies have continued to increase their production capacity to make the "strong ones stay strong", while second- and third-tier companies are still following, and competition in each link can only become more intense.