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Favorable tailwinds for domestic PV industry (2)

By Wang Weiwei (China Economic Net)

09:53, December 03, 2012

The timely promulgation of the government's incentive policy and the State Grid's effective cooperation and giving up profit in such aspects as service, grid connection, and restructuring all impress PV enterprises greatly, and, more importantly, make the industrial development path of developing distributed PV power generation clearer.

Excessive production capacity caused by the shrinking demands of the global market is an important reason for the distress of the PV industry. Opening up the domestic application market is viewed as an important approach to break the strait. For a long time, difficulty in grid connection has been believed to be a bottleneck to the thorough opening-up of the application market. The recent series of preferential policies point clear to the development of distributed power generation and strive to break the grid connection bottleneck and motivate the investing body.

The new changes present enterprises with the possibility of PV products becoming part of daily consumption. When PV becomes people's daily necessity, the whole market environment will be different, and the PV industry will enjoy its true prosperity. Yingli Group, a PV manufacturer, is fully confident about the future of the market. They believe that the enterprise can feel the opening up of market space and apparent increase of market investment activity. Currently, spurred by preferential policies, many PV manufacturers have begun to look for suitable rooftops around the country and actively apply for projects.

Encouragingly, no matter how harsh the exterior environment has been, PV enterprises have never given up. Some PV manufacturers have been exploring new demands in emerging markets, meeting the needs of different consumers with differentiated marketing strategies; some have been carrying out technology cooperation in China, sticking to R&D of high-efficiency solar battery, reduction of PV power generation cost, and acceleration of low-price PV power generation grid connection; some have reformed and upgraded, developing downstream PV power station business to increase profitability. Anyway, such elements as USA's anti-dumping and anti-subsidiary efforts, the EU's anti-dumping, and the Chinese government's policy support are all exterior elements. The future of an enterprise would ultimately depend on itself. For now, Chinese PV enterprises need to seize the valuable opportunity of the government's promoting the strategic adjustment of the structure of the economy and implementing innovation-driven development strategy, so as to accelerate reform and innovation and become bigger and more competitive.

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