The US media said that if China does a good job in these points, it will continue to "dominate" the global photovoltaic competition

Observer.com

2024-05-21 17:25Posted on the official account of Shanghai Observer.com

At a time when the West continues to hype up the "overcapacity" of China's photovoltaic and other new energy fields, the Associated Press issued an article on May 21 saying that if China can improve the digestion of production capacity by strengthening energy storage, grid allocation, peak and valley regulation, etc., then China will continue to maintain its leading position in the global photovoltaic competition.

The article focuses on rural rooftop PV projects in China's Shandong province that are "borrowing light to generate gold", saying that the project highlights the strengths of China's PV industry and takes the opportunity to hype up the so-called "overcapacity". However, the report mentions that China is actively exploring ways to promote the balance between supply and demand, and in the view of industry analysts and photovoltaic companies, if China can solve the problem of restricting the efficient use of new energy, "the future is still bright", and there are huge potential and opportunities.

The picture shows the photovoltaic panels laid on the roof of the houses of the villagers in Siqian Guanzhuang, Huangshanpu Town, Yishui County, Linyi City, Shandong Province. Photo by Xinhua News Agency reporter Yang Wen

Like many of China's infrastructure projects, the country is installing solar equipment at an "astonishing pace and scale," the article said. In 2023, China will add 216 million kilowatts of installed photovoltaic power generation capacity. The solar panels that "grow" on the roofs of rural Chinese homes are a reflection of China's efforts to improve the efficiency of green electricity utilization, and the "new crops" on the roofs of every household demonstrate the advantages of China's photovoltaic industry.

A couple in rural Shandong told The Associated Press that in 2021, they increased the diversity of their sources of income by renting out their idle rooftops, adding that "as soon as the sun comes out, you make money." ”

China has long dominated the global solar manufacturing industry, but has not always installed solar equipment on a large scale at home, and this is changing as the government focuses on reducing greenhouse gas emissions while developing a green economy, the report said.

According to the Action Plan for Peaking Carbon Emissions Before 2030 issued by China's State Council in 2021, by 2025, the proportion of non-fossil energy consumption will reach about 20%, energy consumption per unit of GDP will be reduced by 13.5% compared with 2020, and carbon dioxide emissions per unit of GDP will be reduced by 18% compared with 2020, laying a solid foundation for achieving carbon peaking.

To achieve this goal, China has provided a wide range of subsidies to governments and enterprises at all levels, which has played a driving role in the industrial photovoltaic sector and the household photovoltaic sector, according to the Associated Press.

The article attempts to hype up the so-called subsidy-driven "overcapacity", saying that Shandong province will add about 14 million kilowatts of new photovoltaic power capacity in 2023, and that the province has the capacity to produce more electricity than needed during certain hours of the day, which means that the province has encountered "problems caused by the rapid development of photovoltaics".

In Siqian Guanzhuang Village, Huangshanpu Town, Yishui County, photovoltaic panels have been laid on the roofs of most houses. (Drone photo, source: Xinhua News Agency)

It is worth mentioning that the United States is vigorously promoting rooftop solar projects at a time when the US media portrays them as one of the manifestations of China's "overcapacity". Last month, U.S. President Joe Biden announced $7 billion in federal grants for rooftop solar projects for family homes to help install rooftop solar in more than 900,000 homes in low- and moderate-income communities.

The Associated Press acknowledged that analysts and PV companies alike believe that "the outlook remains bright" if China can improve the efficiency of new energy use.

The report mentioned that China is actively exploring ways to promote the balance between supply and demand. For example, China's battery companies, electric vehicle manufacturers and power sector are developing energy storage technologies and want to see better grid allocation.

Other solutions include a shift to more flexible market pricing, where China's power authorities have implemented peak-to-valley time-of-use tariffs after thorough research to encourage customers to use electricity during off-peak hours, which has also encouraged companies to save costs by rationalizing their working hours.

The report quoted PV industry analysts as saying that China is expected to eventually shift to grid pricing that is "entirely market-driven".

At the same time, China is working to improve grid dispatch. In February this year, the National Development and Reform Commission and the National Energy Administration jointly issued the "Guiding Opinions on Strengthening the Construction of Power Grid Peak Shaving Energy Storage and Intelligent Dispatching Capacity" was officially released, proposing that by 2027, the power system regulation capacity will be significantly improved, the policy system to ensure the market-oriented development of new energy storage will be basically completed, and the intelligent dispatching system adapted to the new power system will gradually take shape, supporting the proportion of new energy power generation in the country to reach more than 20%, and the utilization rate of new energy will remain at a reasonable level. Ensure the balance of power supply and demand and the safe and stable operation of the system.

David Fishman, senior manager at Lantau Group consultancy, who studies China's energy industry, said that every country in the world that is making a big push for renewables faces "the challenges posed by these variable intermittent power generation," but they are looking for smart, artificial intelligence or at least model-supported ways to distribute this energy and use it in the most efficient form," said David Fishman, senior manager at Lantau Group consultancy. This is also the direction of China's development. ”

Mr. Wang, a solar installer in Shandong Province interviewed by The Associated Press, is optimistic about his prospects, saying he has planned to invest in upgrading photovoltaic transformers. He is interested in the rapid development trend of electric vehicles in China. According to the report, China is exploring the construction of charging infrastructure that provides photovoltaic power generation, energy storage, and charging integration in rural areas with low utilization of charging piles.

"I believe the future will get better and better." Mr. Wang from Shandong said.

Grace Gao, head of Greenpeace's Beijing office, said: "China has huge potential and opportunity to peak carbon emissions in its power sector by 2025. I look forward to seeing Shandong truly become a leader in renewable energy and replicate its best practices to the rest of China." ”

In recent years, the global deployment of solar capacity has accelerated dramatically, the PV industry has fluctuated significantly, and the West has begun to frequently hype about the so-called subsidy-driven "overcapacity" in China.

In fact, as Jin Xiandong, director of the Research Office of the National Development and Reform Commission, said at a press conference in April, the issue of production capacity should be viewed objectively and dialectically from the perspective of economic laws. Under the conditions of a market economy, the balance between supply and demand is relative, the imbalance is universal, and a moderate increase in production over demand is conducive to market competition and the survival of the fittest. Some parties link the issue of production capacity with international trade, believing that more export commodities means overcapacity, which is untenable.

Jin Xin, an observer of the clean energy industry who has been in the industry for many years, told the observer that China's photovoltaic industry, in terms of technical level, administrative costs, industrial chain integrity, industrial chain integration, labor costs and the number of technical personnel, is completely unable to compete with the European and American industries. "Whether it's 'overcapacity' or not, that's our own business, and we don't have any chance for them."

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