Guangdong prioritizes solar cells in PV industry buildup
Establishing a foothold in the PV market, Guangdong province has been focusing on solar power product development in the last two years. Although a latecomer in China’s efforts in this line, it expects to catch up in the next few years.
The venture is in accordance with the 12th Five-Year Plan, which lays down the area’s goal to invest $44 million annually in forming strategic and emerging industries. In 2012-13, the province is estimated to generate a total output reaching 3,000MW or $14.7 billion yearly. To help realize this, Guangdong will use currently available resources and prop up equipment and technology bases for the line.
The first industry target is exports, said Yang Xue, director of the electronic information division of the province’s Economic and Information Commission. The local government will facilitate the establishment of a national export credit system and encourage quality assurance initiatives.
The creation of a PV application market in Guangdong itself is also being pushed, and in fact constitutes the second objective. This is to secure an alternative base for the sector and reduce risks from heavy reliance on overseas trade. In addition, the province being a major manufacturing center presents a ready opportunity because of its huge energy requirement. Currently, about 98 percent of China’s solar cell yield is shipped abroad.
To leverage accumulated expertise on FPDs, Guangdong has chosen to focus on thin-film solar cells because the technologies are similar in some ways. Makers in the province take advantage of the available skilled human resource, equipment and support industries.
Besides, the category and related applications are listed among the key projects under the Reform and Development Plan for the Pearl River Delta region issued by the local government. The scheme includes the establishment of a PV industrial base in Sanshui in Foshan city. A number of enterprises involved in cells, components and parts, frame and housing systems, manufacturing equipment, technology research and PV integration are already there. The zone has a total area of 8sqkm.
Seven projects are ongoing. Three of them have investment from China National Building Materials Group Corp. They comprise production machinery for transparent conducting oxide film, and thin-film solar cell research and high-density indium tin oxide target materials manufacture. Thin-film solar production lines make up the third and require a total of $770 million in three years. These will have an annual capacity of 448MW, reaching 1,000MW in the next five years.
The crystalline silicon solar cell production line of Guangdong Aiko is another key undertaking in the base. The first phase commenced operations in September 2010, and achieved an estimated $254 million in production value at year-end. It can produce 150MW annually. The second phase, which will be functional by mid-2011, will boost capacity by 350MW.
By 2015, the Sanshui site is expected to yield $12.3 billion.