The Chinese silicon photovoltaic industry and market: a critical review of trends and outlook

Abstract

With manufacturing capacity ranking number 5 in the world in 2005, China is rapidly emerging as an important player in the global silicon solar cell and module market. Production capacity has been growing by more than 70% per year over the last 7 years and future ambitious plans for the further expansion of the domestic production are likely to transform China in one of the largest (if not the largest) PV hubs in the world. However China's ability to fulfil its goals is challenged in the short term by a global shortage of silicon and in the medium to long term by the ability of the government to stimulate innovation and to introduce the necessary incentives to grow the domestic market significantly given that 80% of the production is currently exported to Germany and the USA.The article addresses these issues by reviewing the recent technological and market trends in the Chinese PV industry. It also explains the major domestic manufacturing strategies and indicates the possible future direction of photovoltaic power generation in China. The study is based on personal interviews conducted in China from May to July 2005 with the major players along the solar supply chain, as well as with representatives of the Chinese photovoltaic R&D sector and policy makers.

Enrolling in global networks and contingencies for China's solar PV industry

“…In conjunction with this, business and trade organizations, both in China (4.81) and abroad (4.94), as well as well as international trade shows and exhibitions abroad (5.44) are also considered of greater than average importance, mirroring Marigo's (2007) observation that Chinese PV firms have been increasingly visible at trade shows globally. As mentioned previously, a large percentage of China's PV products are exported, so this emphasis comes as no surprise.…”

“…By 2006 -2007, there was a growing need in the Chinese solar industry to source polysilicon, the raw building block for all PV-related products, from imports (Marigo 2007) with prices peaking in 2008 at roughly four times the 2001 price (Research Report on Chinese Polysilicon Industry 2009 -2010). Silicon inputs were, and to some extent still are, imported, thus necessitating extra-local relationships.…”

“…R&D institutions, universities, trade and professional organizations, and trade fairs, for example, are also constituent actors in firm networks and particularly important for high-tech firms (Coe, Dicken, and Hess 2008;Liu and Dicken 2006). In the case of mainland Chinese solar PV firms, such relationships with not only research institutes, but also universities exist as firms seek to enhance their competence, overseas exposure and competitiveness (Marigo 2007;Wu 2014).…”

“…By 2006, roughly 80% of China's solar cells and modules were being exported to Germany and the USA (Marigo 2007), and by late 2009, 46% of the solar panels for use in California's Solar Initiative were supplied by Chinese firms (The Economist, April 17-23, 2010, 65). Clearly, inter-firm relationships with buyers should be a topic of interest, and not only where they are located, but also how they are chosen.…”

“…Accordingly, there has been a growth in the number of contributions from PV industryrelated publications (e.g. Caprotti 2009;Marigo 2007;Potash 2009), and a burgeoning emphasis on the PV industry in management (e.g. Jacobsson and Johnson 2000), economic (e.g.…”