National support policies to promote the recovery of the photovoltaic industry

At the time when the deadline of August 6 was about half a month, China-EU trade disputes in the history of Sino-European trade volume have finally ushered in a breakthrough. On July 27th, five industry organizations such as the China Chamber of Commerce for Import and Export of Machinery and Electronic Products jointly issued a statement: China's representatives of the photovoltaic industry and the European Commission reached a price commitment on China’s trade disputes over photovoltaic products exported to Europe.

It is reported that the price commitment negotiations specifically mean that China promises that the photovoltaic products exported to Europe are not lower than a certain minimum price, and set a specific time limit; China promises to limit the components exported to Europe every year to a certain scale. In exchange, the EU will not take anti-dumping measures against Chinese PV products.

According to industry insiders, the agreed price commitments of the negotiation results have weakened the competitiveness of China's photovoltaic products in the EU market to a certain extent, but it has prevented the domestic photovoltaic industry from being exposed to the EU's high anti-dumping duties.

China and Europe reach an agreement to avoid losing both sides

On July 27, the "Joint Statement on Price Agreement between China and Europe on the PV Case" published by the China Mechatronics Import & Export Association's official website pointed out that after painstaking and meticulous negotiations between China and the EU, China's photovoltaic industry representatives and the European Commission on China's exports to Europe Product trade disputes reached a price commitment. This price commitment reflects the willingness of the vast majority of Chinese companies and enables China's photovoltaic products to continue to export to the EU and maintain a reasonable market share under the trade arrangements agreed upon by both parties. China Chamber of Commerce for Import and Export of Machinery and Electronic Products, China Renewable Energy Society, All-Energy New Energy Chamber of Commerce, China Resources Comprehensive Utilization Association Renewable Energy Professional Committee and China Photovoltaic Industry Alliance represent the Chinese PV industry.

Shen Danyang, spokesperson of the Ministry of Commerce, stated that the Sino-European trade dispute on photovoltaic products is the largest trade friction case involved in the history of Sino-European trade and is one of the most important issues in China-EU economic and trade relations. Since the beginning of this year, the Ministry of Commerce has promoted consultations between relevant Chinese PV industry associations and companies and European investigation authorities. The Chinese Chamber of Commerce for Import and Export of Machinery and Electronic Products and related companies have repeatedly visited Europe to communicate with the industry. After the EU announced the preliminary results on June 5th, the Chinese industry had conducted intensive rounds of negotiations and negotiations with the Commission’s investigative bodies on price commitments and made great efforts. The results of the negotiations were positive and constructive, fully demonstrating the pragmatic and flexible attitude of both parties and the wisdom of solving problems.

On June 4 this year, the European Commission, despite the opposition of several EU member states, made an initial anti-dumping decision on Chinese PV products. From June 6 to August 6, the EU imposes a temporary anti-dumping duty of 11.8% on photovoltaic products from China, and the tax rate will rise to 47.6% thereafter. The EU Trade Commission stated that the interim rate will remain for 6 months until 12 In the month, the European Commission will then decide whether to impose permanent tariffs on Chinese-made PV products. Once levied, the tariff will last for 5 years.

Before the deadline of August 6, China and Europe began the most intense price negotiations. The China Chamber of Commerce for Mechanical and Electrical Products Imports and Exports revealed that a total of 95 Chinese companies have participated in the price commitment negotiations. The price commitment results have demonstrated the willingness of the vast majority of Chinese enterprises, allowing China's photovoltaic products to continue to export to the EU under the trade arrangements reached by both sides. And maintain a reasonable market share.

Judging from the current Sino-European side's statement, no specific price commitment figures have been disclosed as required. The reporter learned from a participating company that the price was between 0.55 and 0.57 euros per watt. Meng Xianyi, deputy director of the China Renewable Energy Society, pointed out that the price of 0.57 euro/watt will be significantly higher than the previous sales price of China's photovoltaic products exported to the European Union, and the price advantage of Chinese products will be weakened. In addition, China's exports of PV products to the EU will also be subject to quantitative restrictions, which will be achieved through annual quotas. Both of these points will lead to accelerated integration of the domestic photovoltaic industry, the leading companies will have greater capacity, and will be further supported in accordance with national incentive policies, while other companies in the industry are faced with consolidation or elimination.

The country has shown its way out of the photovoltaic industry

This is the best time and the worst time. The use of Dickens's famous phrase to describe China's photovoltaic industry in the past just passed July. Suffering from temporary EU tariffs, many enterprises faced difficulties in surviving their lives. They felt that the mountains were dubious and were no longer in doubt. They finally reached an agreement before the deadline. They also demonstrated the prospects of Liuyinhuamingyi Village. More gratifyingly, the country introduced the most powerful support. The policy, which favors the photovoltaic industry, also allows the photovoltaic industry, which has been heavily dependent on foreign markets, to find a new outlet for the domestic market.

On July 15, the State Council issued the "Some Opinions of the State Council on Accelerating the Healthy Development of the Photovoltaic Industry" (hereinafter referred to as the "Opinions") that the industry has long been waiting for. Compared with the previous series of incentive measures, the “Opinions” are more specific and detailed, and practical policies and measures are provided for almost all major problems in the construction of power plants.

According to the "Opinions", from 2013 to 2015, the annual average installed capacity of new photovoltaic power generation is about 10 million kilowatts, and the total installed capacity will reach 35 million kilowatts (GW) or more by 2015, which is much higher than the previous "12 solar power generation developments." Fifth Plan "20 million kilowatts in 2015. Regarding the years of subsidies that are of common concern to the industry, the Opinions stipulate that the on-grid tariffs for photovoltaic power plants and the subsidies for distributed photovoltaic power generation should be reasonably reduced according to factors such as changes in the cost of photovoltaic power generation. The implementation period of on-grid tariffs and subsidies is, in principle, 20 years. This is also the first time the government has clarified the price of electricity and the number of years of subsidies.

Shangpu Consulting energy industry analysts believe that China's current photovoltaic industry has many problems, but the most important is the technical issues. It must go through technological upgrading, exert the power of reserve technologies, and solve the problem of serious overcapacity in the photovoltaic industry through technological innovation. Under the circumstances, there will be no cycle of vicious competition.

Basically, for enterprises, in the future, we must focus on the development of other emerging markets and expand sales channels. It should be said that emerging markets have developed very quickly these years; on the other hand, we must pay attention to the application of the domestic market, and now the country It also attaches great importance to this industry, and the domestic market has also developed rapidly. Zeng Zhanwei, president of Zhejiang Zhengtai Solar Energy Technology Co., Ltd. said.