Chinese photovoltaic industry: groping to find in Africa "bright"

Since the end of last year, with the United States and the European Union has the implementation of the "double reverse" survey, the Chinese photovoltaic industry, this once very bright "sunshine industry", grid tie inverter and gradually lost its former glory, into a dim photovoltaic products in China. Forced domestic production capacity is too large, raise barriers to entry and the pressure of the U.S. and European markets, the domestic photovoltaic enterprises have the perspective to emerging markets, emerging markets "bright" look forward to using the long-term development of the enterprise.

In this context, the recently held "2012 PV industry leaders summit - the Africa Session" in the industry led to heated attention. The summit has attracted more than 20 African Embassy officials as well as Suntech, Yingli, Funeng Chinese and foreign the photovoltaic business representatives, and to explore the opportunities and challenges of investing in Africa photovoltaic market. PV companies in China, South Africa, Nigeria, Ghana and other countries in China officials detailed interpretation of the enormous potential of the PV market countries. For Chinese enterprises to be a huge market potential in Africa is our consensus, but the difficulties and problems before us is more real, as the year for the African market, attracted swarms of investors, African governments and practitioners of Chinese PV companies whether financial institutions can be followed in waves, and is in the reflection period, facial expression showing mostly confused and confusing.

The market potential in Africa is a consensus

Africa as an emerging market, the conditions of the development of photovoltaic industry has a favorable climate and geography. Africa can make use of solar, wind, geothermal and other clean resources have considerable reserves. Sahara Africa region, especially close to the equator, the annual adequate light, the development of the photovoltaic industry has a unique advantage.

Accompanied by African economy is booming, growing national demand for electricity, which also provides a good opportunity for the development of renewable energy. Public information is expected that by 2030, half of the generating capacity in Africa will come from renewable energy. 17% of which comes from hydropower, 14% from wind power, 14% from solar, 5% from bioenergy. 2050, the African power generation will be renewable energy-based fossil fuels will increase from 84% down to 23%.

At the government level, in recent years, African governments have introduced plans and policy for the development of solar and other new energy. Moroccan Ambassador to Jafar Al heat Hakim had said, the Kingdom of Morocco has been developed (and already implemented) ambitious plan for a solar energy production. Moroccan solar plan has a $ 9 billion investment, including equipment, industrial, research and development and training. According to the plans of the Government of Morocco, in 2020, will reach 2,000 megawatts of solar panel  power generation capacity, or 42 percent of its energy from clean energy.

The Ethiopian Embassy Minister Counsellor Ke Bude completed Jeny (KebedeBeyeneBirru) summit pointed out, research has proved that African countries on average every year can receive a very strong 325 days of sunshine, coverage of six kilowatts per square meter per day / hour the Saharan sun the resources sent into electricity, can not only electricity delivered to the local market, but also exported to Europe.

Officials from South Africa, Egypt and other countries of the solar potential of their respective countries the same confidence. This view is also the date of the consensus of all businesses, academics and officials attending the summit. Turning to the solar market in Africa, the presence of a number of photovoltaic enterprises generally believe that the African market has great potential, and how to develop the African market is the problem in front of them.

Difficulties can not be ignored

The face of the debt crisis, Europe and the United States "double reverse" to the plight of the Chinese PV companies, the Chinese government encourages enterprises to integrate the force Baotuan sea, to improve their ability to resist risks. Respond to climate change, Division of International Cooperation Division, Huang asked Air, according to the National Development and Reform Commission, briefed the meeting on the Conference on Sustainable Development in June this year, Premier Wen Jiabao solemnly announced to the world, the Chinese central government will come up with two billion for Climate change, international cooperation, mainly to help African countries in the promotion of energy saving products and capacity building cooperation. "The next step in our South-South cooperation projects which the next batch of gift products also want to include solar photovoltaic products in the product list, and we look forward to further pragmatic cooperation with various countries in Africa." Wong said to Air. Share of PV products in the entire project, has not yet been determined. "At present, the domestic photovoltaic enterprises to participate in the enthusiasm is very high, usually dozens of enterprises to participate in a project."

Government support for all PV companies is undoubtedly a good news, but the long-term development of the enterprise is dependent on their own to open up emerging markets. PV enterprises in the face of the African market, will still show their own concerns. For Chinese PV companies into Africa, the main face of the pace of the fetters of domestic and foreign factors.

Placed in front of the most important issue is the financing. New energy as the future of the country one of the strategic industries, by the State in the administrative and legislative support. However, in the face of Europe and the United States "double reverse" investigation of the impact of the domestic photovoltaic enterprises generally faced with the problem of financing difficulties, loans bad credit "is a collective feeling. "The characteristics of the photovoltaic power plant is a large investment and long payback periods, the problem of financing is a major problem." Xing Yang, vice president of international sales Yingli bluntly. Comoros ambassador also pointed out that the concerns photovoltaic corporate finance: "If the Chinese enterprises lack of funds, we also lack of funds, these projects will be on how to proceed."

African countries is uncertain investment environment in the Chinese PV companies need to face another problem. African countries in the field of new energy to develop a long-term development plan, but only a clear policy in South Africa and a few countries, which is why many domestic photovoltaic enterprises will enter the first leg of Africa in South Africa . "Relatively speaking, the whole policy of South Africa is relatively clear, because the tariff situation is very clear, the yield is relatively clear ... now in terms of we have gradually expanded to other places, basically we just such a situation, this business has just launched For many the experience something or belonging to the exploratory stage. "Trina Solar Senior Manager of Public Affairs, said Hou Kun.

Export-Import Bank of China chief country risk analyst Cho Chang will African PV market downstream ancillary uncertain that his concerns. He pointed out that, before entering the African market response to the user, fluorescent tubes, supporting facilities, network problems downstream sectors have in-depth understanding. It comes to the future price of "how future network selling prices can be said that the crucial question, If this control is not good, may eventually make all the previous efforts go down the drain." He said.

In addition, photovoltaic enterprises of the security situation in the African countries, the limitations of the continuity of policies and photovoltaic power generation that their concerns. Insiders pointed out that, the photovoltaic power generation is still the high cost of energy conversion rate is low, not suitable for long distance transportation, storage, and other issues. First need to address the problem of photovoltaic power inverter generation energy storage problem, this problem can be a breakthrough in the next one or two years, the prospects of the PV market can be said to be infinite. "Said Zhu Bing, Seville LDK Solar Chief Strategy Officer .