China calls on its PV industry to deepen industrial management, develop ‘strategic alliances’

The Chinese government has urged its PV industry to have reserves of key products, but not to hoard them. Image: Tongwei

The Chinese government has issued a notice to its PV industry that calls for the optimisation of the sector and further buildout of its infrastructure while warning against hoarding products and the establishment of solar monopolies.

The country’s Ministry of Industry today (24 August) released the policy document that called for an “optimisation of the industrial layout” of China’s PV sector by planning and managing the development of the PV industry while promoting China’s internal solar market.

It said there was an “urgent need to deepen industry management” following supply and demand imbalances, price fluctuations and supply chain hoarding.

As a result, the Ministry called on Chinese solar stakeholders to “apply a new generation of information technology, build a big supply chain data platform for silicon materials, silicon wafers, batteries, components […] and key supporting materials and equipment”.

While doing this, however, companies are encouraged to “reserve materials such as polysilicon and batteries” but “hoarding is strictly prohibited”. Panic buying and hoarding last year was a key factor in driving up the price of polysilicon and modules as companies scrambled to lock in supply to meet customer demand.

Now, the Chinese government is calling on its solar industry to form long-term “strategic alliances” and cooperate on the production and supply of key silicon materials and products as it conducts “joint research to promote industrial quality improvement, cost reductions and efficiency enhancement.”

Moreover, it said the industry should “adhere to the overall planning of epidemic prevention and control”. China, unlike most of the rest of the world, is pursuing a zero-COVID strategy that has already seen industrial centres shutdown following small outbreaks and the key export hub of Shanghai closed for several weeks in April.

And the call for greater integration and infrastructure development has been made even more pertinent this week as China’s PV industry has been hit by power rationing following extreme heat in some provinces. This has forced some major PV supply to cut their production output in key regions.  

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.
11 October 2022
PV CellTech Extra will be held as a series of live webinars and on-demand sessions on 11-13 October 2022. We'll be taking a slightly further forward-looking view at the technologies and roadmaps for new cell architectures set to dominate mass production during 2023-2025 with special emphasis on the potential timelines for technologies beyond the single-junction cell design, including perovskite and hybrid concepts.

Read Next

September 23, 2022
Solar accounted for half of all global power generating capacity added last year, with 182GW deployed, a 25% increase on 2020, according to a report from BloombergNEF (BNEF).
September 22, 2022
JA Solar has been promoted to AAA-Rating status for the first time, joining LONGi Solar and Trina Solar in this exclusive bankability ratings, now recognised widely across the PV sector as one of the most accurate and detailed ranking systems on offer to PV module buyers when undertaking supplier due diligence.
September 22, 2022
Wood Mackenzie has repeated warnings that module supply shortages are set to persist until the end of 2023.
September 19, 2022
Canadian Solar has announced a target of 10GWh of battery manufacturing capacity by the end of 2023, up from 2.5GWh today.
PV Tech Premium
September 16, 2022
Global shipping rates for freight containers are in “free fall” as supply outstrips demand following 18 months of exorbitant prices
September 14, 2022
US utility-scale service provider Borrego has launched a new solar and battery storage procurement marketplace and optimisation solution called Anza.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 27, 2022
15:30 AEST (UTC +10)
Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)