UK Research Institute Report: The cost advantage is huge, and China has won the race for green technology capacity
"China is far ahead of the EU and the US in the solar industry. Wood Mackenzie, a well-known UK-based energy consultancy, reported in December that the cost of producing solar modules in China had fallen by 42 percent over the past year, and that competitors such as the European Union and the United States could no longer compete with China on cost.
According to German media reports on January 7, Steven Knell, vice president of Wood Mackenzie and an expert in power and renewable energy, said in an interview that China is now the world's lowest-cost solar module manufacturer, and competitors such as the European Union and the United States are unlikely to replace China's position in the renewable energy value chain, "China has won the race for green technology capacity."
The company's latest report, released in mid-December, shows that the global energy transition continues to accelerate, driven by rapid growth in wind and solar, with renewables expected to account for more than 50% of the world's electricity supply by 2050. Among them, China's installed solar power capacity has soared, and the new installed capacity in 2023 may be twice that of the United States and the European Union combined.
As the world's largest manufacturer of solar modules, China already accounts for 80% of the world's production capacity, the report said. Over the past 12 months, the cost of producing solar modules in China has fallen by about 42% to around US$0.15 per watt, giving Chinese manufacturers a significant cost advantage over foreign competitors.
Wood Mackenzie estimates that the cost of solar module production in China has fallen by about 42%
Steven Kernell, vice president of Wood Mackenzie, told German media that compared to China, the cost of production in Europe is about $0.3 per watt and the cost of production in the United States is $0.4 per watt...... China has won the race for green technology capacity. ”
He pointed out that U.S. research on China's PV industry shows that China's sheer manufacturing scale and resulting supply chain advantages are the main factors that allow China to gain a dominant position in solar module manufacturing.
Earlier, the German media "German Editorial Network" (RND) reported that the German solar market has boomed in recent years, but the vast majority of solar panels come from China, and some representatives of the German photovoltaic industry are calling on Berlin to provide subsidies for its own solar panels in order to compete with Chinese manufacturers. German Economy Minister Habeck said he plans to strengthen German solar manufacturers through state subsidies.
Reuters also pointed out in October last year that Chinese solar panels have brought "huge price pressure" to European manufacturers, and some EU countries, led by Germany, are trying to reduce their "dependence on China" in the solar sector, seeking to use subsidies or "tariff sticks" and other tools to protect EU photovoltaic companies.
Data map: Hainan Tibetan Autonomous Prefecture Ecological Photovoltaic Park, Qinghai Province Source: IC photo
According to the national power industry statistics for January-November 2023 released by the National Energy Administration on December 19, as of the end of November, the cumulative installed power generation capacity of the mainland was about 2.85 billion kilowatts, a year-on-year increase of 13.6%. Among them, the installed capacity of solar power generation was about 560 million kilowatts, a year-on-year increase of 49.9%, and the installed capacity of wind power was about 410 million kilowatts, a year-on-year increase of 17.6%.
In terms of technology research and development, China's photovoltaic industry also has a strong ability to innovate. According to CCTV news, the State Intellectual Property Office recently released data showing that the current global patent applications for solar cells in mainland China are 126,400, ranking first in the world.
In recent years, the average annual growth rate of patent applications in the mainland photovoltaic industry has reached 23.1%, and the quality of patents is also improving.
In December 2023, LONGi Green Energy set a new world record for the efficiency of monocrystalline silicon solar cells with a cell conversion efficiency of 27.09%. Since 2012, the photovoltaic conversion efficiency of mass-produced solar cells has increased by more than 60%, but the cost has been reduced by half, and in many places it has been realized that the cost of generating one kilowatt-hour of electricity is only a dime.
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