gamesinasia| New energy has suddenly become a huge hit!

A-share 1.7 trillion track, there is a heavy signal.

On May 21, according to the official account of China Photovoltaic Industry Association CPIA, China Photovoltaic Industry Association recently organized a "Symposium on High-quality Development of Photovoltaic Industry" in Beijing. The meeting pointed out that it is necessary to strengthen the crackdown on vicious competition in sales below cost prices, encourage mergers and restructuring in the industry, and smooth the market exit mechanism.

Since the beginning of this year, the prices of products in all aspects of the photovoltaic industry chain have fallen across the board. According to the data released by the Silicon Branch of China Nonferrous Metals Industry Association on May 15, the price of polysilicon has exceeded the cash cost of all enterprises in production. In the first quarter of this year, the performance of a number of head photovoltaic listed companies is under pressure, and the operating situation of second-and third-line photovoltaic enterprises is even more severe.

Reflected at the market level, the photovoltaic sector of A shares has been constantly adjusted. As of May 21, the Wind photovoltaic index was 2953.Gamesinasia05:00, the cumulative decline for the year was more than 20%, compared with the peak in August 2022, the cumulative decline has reached 52%.Gamesinasia.2%. According to Wind data, the total market capitalization of A-share photovoltaic plate is about 1.73 trillion yuan.

Blockbuster meeting

On May 21st, according to the official account of China Photovoltaic Industry Association CPIA, on the afternoon of May 17th, under the guidance of the Electronic Information Department of the Ministry of Industry and Information Technology, China Photovoltaic Industry Association organized a "Symposium on High-quality Development of Photovoltaic Industry" in Beijing. The meeting pointed out that it is necessary to strengthen the crackdown on vicious competition in sales below cost prices, encourage mergers and restructuring in the industry, and smooth the market exit mechanism.

It is reported that From Trina Solar Energy, Xiexin Technology, Jingke Energy, Ates, Longji Green Energy, Tongwei (600438), Daquan Energy, Yibin Municipal Government, Development Research Center of the State Council, National Research think Tank, Energy Research Institute of National Development and Reform Commission, National Engineering Research Center for Silicon-based material preparation Technology, National Development Bank, Industrial Bank (601166) and other photovoltaic enterprises, research units, local governments, Representatives of 14 units of financial institutions attended the meeting. Representatives of the Standards and Technology Committee of China Photovoltaic Industry Association and the Special Committee on intellectual property Rights also attended and reported on the progress of the relevant work. The meeting was chaired by Jiang Hua, Deputy Secretary-General of China Photovoltaic Industry Association. Jin Lei, Director of the Electronic Information Department of the Ministry of Industry and Information Technology, attended the meeting and delivered a speech.

The meeting pointed out that the photovoltaic industry is an industry with a very high degree of marketization, and it is more appropriate to solve the current difficulties of the industry through market-oriented means, but it should also give full play to the role of the government's visible hands, including optimizing the guiding role of photovoltaic manufacturing industry management policies on industry capacity construction, improving key technical indicators, standardizing the management of local governments' investment policies, and establishing a national unified market. Adapt to the characteristics of fast iteration of photovoltaic technology, establish effective intellectual property protection measures, encourage industry merger and reorganization, smooth the market exit mechanism, and strengthen the crackdown on vicious competition in sales below cost; ensure the stable growth of the domestic photovoltaic market, explore to support the application of advanced technology through demonstration projects, and change the situation of winning bids at low prices.

The meeting said that photovoltaic enterprises and industries also need to do a good job, fully realize their main responsibility for solving the current difficulties of the industry, put an end to vicious competition, truly take actions from the standpoint of the industry, adhere to innovation-driven and long-term doctrine, win-win cooperation, and jointly maintain the order of fair competition.

The China Photovoltaic Industry Association will focus on the following work in the futureGamesinasia:

First, support the Electronics Department of the Ministry of Industry and Information Technology, give full play to the role of "normative conditions for the photovoltaic manufacturing industry", and guide and standardize the development of the industry.

The second is to continue to promote the construction of price index model and explore a more reasonable price formation mechanism at home and abroad by means of photovoltaic module futures.

Third, it is planned to hold a symposium on the calibration and downgrading of TOPCon battery efficiency to discuss the causes and solutions.

Fourth, continue to strengthen industry monitoring, and relevant industry information will be released to the public in a timely manner to guide industry decision-making.

Fall across the board

In the context of carbon neutrality, the photovoltaic new energy industry has ushered in unprecedented opportunities for development, but it is also facing the challenges of overcapacity and market saturation. The imbalance between supply and demand makes the price of photovoltaic products continue to decline, and some products have even fallen below the cost line.

Since the beginning of this year, the prices of products in all aspects of the photovoltaic industry chain have fallen across the board. Take the price of N-type TOPCon components as an example, according to Infolink data, from 0.98 yuan / W in mid-early January, it has dropped to 0.86 yuan / W, a decrease of 12%.

Industry analysts believe that according to the current battery price, packaging cost and competition pattern, it is expected that the component price may continue to decline for some time in the future.

According to the data released by the Silicon Branch of the China Nonferrous Metals Industry Association on May 15, the current price of polysilicon has exceeded the cash cost of all enterprises in production. Under the pressure of high inventory, some small and old production capacity have been stopped and overhauled. The vast majority of enterprises have a strong willingness to raise prices, and they choose to hold down the goods at low prices.

Under the background of the decline in the price of the photovoltaic industry chain, some enterprises have terminated the project investment or postponed the project construction.

Among them, Jinzhai Jiayue, a subsidiary of ST Landa (Landa shares), temporarily suspended production of the existing 3.5GW-182mm large-size PERC high-efficiency solar energy (000591) battery production line since March 14, 2024, and then extended the production time again and again due to financial constraints and other factors. ST also decided to terminate the construction of Tongling high-efficiency photovoltaic battery industry base project.

Haiyuan compound material announced in March this year that it terminated the Chuzhou 15GW N-type high-efficiency photovoltaic cell and 3GW high-efficiency photovoltaic module project and transferred it to Aixu Technology at a price of 38 million yuan.

In early February this year, Aineng Ju temporarily halted production of the polysilicon battery production line, originally planned to stop production until March 31, 2024, but due to the lack of satisfactory results in obtaining orders, the company decided to continue to suspend production of the polysilicon battery production line.

In addition, according to the latest financial data, in the first quarter of this year, the performance of a number of head photovoltaic listed companies is under pressure, and the operating situation of second-and third-line photovoltaic enterprises is even more severe.

Reflecting the market level, the photovoltaic sector of A shares has been constantly adjusted. Take the Wind photovoltaic index as an example. As of May 21, the index fell 1.49% to 2953.05 points, with a cumulative decline of more than 20% for the year, compared with the peak in August 2022. The cumulative decline has reached 52.2%.

According to Wind data, as of May 21, the total market capitalization of A-share photovoltaic sector is about 1.73 trillion yuan.

Speed up the shuffle

Analysts pointed out that low-price competition has affected the healthy development of the industry to a certain extent, and has also limited companies 'investment in R & D and innovation, thus affecting long-term industry competitiveness.

The "Symposium on High-Quality Development of the Photovoltaic Industry" organized by the China Photovoltaic Industry Association clearly emphasized the need to strengthen efforts to crack down on vicious competition in sales below cost prices; ensure stable growth in the domestic photovoltaic market, explore demonstration projects to support the application of advanced technologies, and transform low-price bidding situation, etc.

In a saturated market environment, the importance of corporate development strategies and market positioning has become increasingly prominent. The photovoltaic industry needs to find new growth points while maintaining healthy competition to avoid falling into a vicious cycle of low profits. However, many analysts believe that in the long run, the price decline of photovoltaic products will be limited.

The "Symposium on High-Quality Development of the Photovoltaic Industry" also pointed out that industry mergers and reorganizations should be encouraged to smooth the market exit mechanism. This statement sends a signal for supply-side reform of the industry.

It is worth noting that while competition in the photovoltaic industry is intensifying and reshuffle is accelerating, domestic new photovoltaic installed capacity showed rare signs of decline in March this year. According to the national power industry statistics from January to March released by the National Energy Administration, in the first three months of this year, 45.74GW of new photovoltaic installed capacity were added. According to previously released data from January to February, the new installed capacity of photovoltaic power in March was 9.02 GW, a year-on-year decrease of 32.13%.

According to the forecast of the China Photovoltaic Industry Association, my country's new photovoltaic installed capacity in 2024 is conservatively estimated to be 190GW, which is lower than in 2023. Under optimistic circumstances, it is expected to be 220GW, which is basically the same as in 2023.

proofreadinggamesinasia: Su Huanwen