Astronergy on module prices experiencing bottom-level oscillation, empowering power station development and sparking energy storage momentum

“I believe that currently, we are one of the leading companies in the solar industry when it comes to TOPCon products. After completing our expansion plans this year, TOPCon products will account for 80% of our overall production capacity, surpassing other leading companies in the industry,” said Lu Chuan, Director of CHINT Group, and Chairman of Astronergy, in an interview with PV Tech.

At this year’s SNEC and recently concluded Intersolar Europe exhibitions, Astronergy showcased the upgraded ASTRO N series modules. Among them, the newly launched n-type TOPCon module, ASTRO N7 series, adopts rectangular silicon wafers and TOPCon 3.0 cell technology (with an average cell efficiency of 25.5%) along with SMBB and gap-filling film technology, providing a high power output of up to 615W+ and an efficiency of over 22.7%.

According to Lu Chuan, their TOPCon products offer advantages in terms of higher power output, higher efficiency, greater reliability, higher wattage per unit, and lower BOS (balance-of-system) costs (referred to as the “Four Highs and One Low”). TOPCon is currently considered an advanced technology route in the industry, and Astronergy has been planning for it for some time now.

Astronergy is a subsidiary of the CHINT Group that focuses on manufacturing PV modules. Currently, the company has an annual module capacity of 40GW and an annual cell capacity of 34GW. Beyond its current capacity, further expansion is underway.

According to the plan, Astronergy’s module capacity is expected to reach 50GW by the end of 2023, with the TOPCon module capacity reaching 36GW. Meanwhile, Astronergy’s module shipment guidance for this year is over 30GW. It is worth noting that the jump in module shipments from 13.5GW to over 30GW represents a significant leap forward.

In Lu Chuan’s view, whether it be in terms of technology or shipments, Astronergy has the ability and strength to make further strides forward. He stated: “Currently, we are among the top two in the TOPCon sector of the industry, and our competitiveness in terms of product efficiency, power output, and cost is excellent.”

“Furthermore, any technology in the photovoltaic industry can maintain a lead of at most 6-12 months. Therefore, it is crucial to have market insights and quickly adapt to market trends. We have acted swiftly and made good progress in this technology transition. Some companies have encountered difficulties in adjusting their production lines and ensuring product consistency when switching to different TOPCon processes, such as LP and PE, as they face challenges in securing required equipment due to factories being at full capacity. This ultimately affects the speed of their expansion plans.”

Price volatility and a promising future, favourable for large-scale PV project development

With a steady pace of technological advancements and products poised for release, Lu Chuan holds a highly positive outlook on the global solar PV market’s development this year.

He stated, “Considering the annual increase in installed capacity, it is highly probable that we will surpass 350GW this year. Just looking at the substantial increase in newly installed capacity in China during the first quarter, my conservative estimate is already significant, while some institutions project even higher figures.”

Indeed, market growth is closely linked to the rapid growth of demand for PV applications within the industry, as well as the pricing dynamics along the entire supply chain. The current thriving state of PV power generation owes its success to 10 years of continuous efforts towards cost reduction and efficiency optimization, which have remained the industry’s constant focus.

After experiencing two years of abnormal price hikes, the PV industry’s chain prices have been fluctuating downward this year. From silicon materials to module prices, there have been varying degrees of decline. Most recently, the price of solar-grade polysilicon dropped again. On June 21st, the Silicon Industry Association announced the latest prices for solar-grade polysilicon, including both n-type and reclaimed materials, as well as dense and broken wafer materials. Across the board, prices have experienced a general decline of more than 8.2%, with some reaching a decrease of nearly 10%.

“The pricing of silicon materials has essentially bottomed out. In my opinion, a silicon price range of RMB70,000 to RMB80,000 per unit would render some older silicon material production capacities unable to sustain their operations, potentially leading to capacity shutdown. However, once new capacity comes into play after the shutdowns, there might be a short-term tightening of supply. Currently, some European customers are adopting a cautious approach, but after some time, they will realize that we have reached the bottom and will resume placing orders. I believe this signifies a positive trajectory for the future,” commented Lu Chuan.

“In mid-June, Chinese module prices were hovering around the range of RMB1.35 to RMB1.4 per watt, occasionally with a few individual orders slightly below the range, followed by a mild rebound. Nevertheless, in comparison to the past two years, I don’t anticipate the rebound to soar to excessively high levels due to the ample supply of silicon materials. Under these conditions, the current pricing scenario is favorable for the profitability of PV projects,” Lu Chuan stated in an interview with PV Tech.

He further added that the current module prices have facilitated the initiation of large-scale power plants. Despite the current environment of declining electricity prices and high interest rates in Europe, some projects can still proceed. Moreover, it is generally predicted in Europe that interest rates will decrease next year, consequently indicating a positive trend for future power plants. Additionally, many European countries have yet to fulfill the renewable energy requirements set by the European Union, which implies a more assertive approach towards the development of solar and wind power.

In addition to the module segment, CHINT also has a pivotal business segment involved in power plant development. Currently, the company has a presence in both Chinese and international markets, primarily focusing on expanding its business through the development, construction, sales, and operation and maintenance of power plants.

With the decline in module prices and the increasing adoption and construction of PV power generation worldwide, Lu Chuan sees more opportunities for the development of the power plant development business.

He stated: “We primarily focus on development. In China, after completing the construction of power plants and connecting them to the grid, we collaborate with central state-owned enterprises. For overseas, we sell the projects to local funds in Europe before the construction phase. However, recently there has been a clear trend of more domestic central state-owned enterprises participating in bidding for projects in Central and Eastern Europe. This is because interest rates in Europe are high, with Euro interest rates exceeding 5%, while China has lower interest rates at just over 3%. This reverse interest rate scenario has significantly enhanced the competitiveness of Chinese state-owned enterprises. Previously, China’s interest rates were at four to five per cent, while Europe’s rates were at one to two per cent. As a result, we have handed over our Hungary project to a central state-owned enterprise. In terms of our business model, we will continue to develop PV power plants in certain locations.”

Beyond inverters, energy storage holds great potential

At the Intersolar Europe exhibition, CHINT simultaneously showcased the company’s inverters, energy storage products, and solutions, including PV inverters of 2-30kW, 110-125kW, and 275kW, as well as the new liquid-cooled energy storage system POWER BLOCK 2.0 and the residential energy storage system POWER LEAF.

Regarding the inverter business, Lu Chuan mentioned that although the inverter business had experienced a period of rapid growth in the past few years, with major manufacturers going public and showing impressive performance, this year will likely see a slowdown compared to previous years. Recently, Europe has accumulated a surplus of inventory due to excessive installations in the residential sector, so there is still a process of destocking underway. Additionally, after the downward adjustment of electricity prices in Europe, people are not as eager to install residential PV systems, and as a result, the challenge of managing performance in the face of destocking is quite significant. “It is advantageous for CHINT that our inverter business’s presence in Europe was relatively small, and thus the impact is limited. Our inverter business’s main market is in the United States, where CHINT inverters have been performing well.”

In recent years, the prices of inverters have significantly risen due to the IGBT ( insulated-gate bipolar transistor) supply bottleneck. However, since the previous year, the issue with the IGBT unidirectional machine has been resolved, achieving localisation. The only remaining challenge is the domestic production of modularized IGBTs with a capacity of over 100kW, but there are currently domestic companies working on it. “We believe that within the next two years, production will be accomplished in China. Once localized production is achieved, the supply capacity of inverters will be abundant, eliminating the bottleneck. The competition will then shift focus towards market positioning, customer relations, costs, and the improvement of energy storage capabilities.”

In addition to inverters, CHINT has high hopes for energy storage. Currently, CHINT primarily focuses on products and integration beyond batteries, utilising the advantages of their other power station products to drive the adoption of energy storage solutions among existing power station users. Drawing from real-world European scenarios, CHINT Power has introduced a cutting-edge liquid-cooling energy storage system called POWER BLOCK 2.0, designed for large-scale ground-based power stations.

Lu Chuan emphasised that the liquid-cooling energy storage system, CHINT’s next-generation product, has shown exceptional performance. “It achieves an energy density of 5.1MWh within a 20-foot container, resulting in a system efficiency improvement of over 37%. This currently represents the highest energy density publicly reported in the industry, giving us great confidence in the future of energy storage.”

Lastly, Lu Chuan expressed that the company’s internal goal for the year is to maintain a high growth rate in the overall new energy sector, encompassing modules, power station development, and inverter energy storage. The sales growth across the whole new energy sector will be elevated to a new level.