Shortly after EU’s preliminary decision of imposing punitive tariffs on Chinese PV products, anexecutive meeting was held by the State Council. It pointed out that great supports should be given to overcome the current flight and efforts exerted to stimulate domestic demand as well as industrial upgrading. Specially formulated for PV industry, State Council’s six regulatory measures not only signals its supportive attitude, but also boosts our confidence.

Though relevant details about these measures need to be further specified, distributed PV is emphasized in many ways. In line with these measures, consumption pressure of grid connection will be relieved via full acquisition of distributed PV and other methods. In addition, companies will be also granted with subsidies on the basis of generating capacity.

As a result, two major bottlenecks of distributed PV power generation, namely grid connection and subsidy, will be effectively resolved. It is predicted that a state scheme on grid integration of distributed PV generation will be introduced before August this year, stipulating relevant details about grid connection, electricity price, subsidy and other issues. It will greatly promote growth in this field.

At present, negotiations between two parties are underway. No matter how they proceed, domestic PV enterprises should make preparation and take corresponding measures as early as possible. On June 19, Yingli Solar and China Southern Power Grid signed a strategic cooperation agreement to deepen collaboration on photovoltaic power generation, smart grid, energy storage and other aspects. Joint efforts will be also made regarding development, investment, construction and operation of PV projects. Their cooperation not only boosts our confidence, but also indicates national support on new energy development.

As far as we know, China’s PV enterprises have shifted their focuses to domestic and emerging markets following the implementation of punitive duties. Take Yingli Solar as an example. Business volume of domestic and emerging markets sharply increases, accounting for more than 20% and the proportion is expected to exceed 40% in 2013.

Wang Bohua, Secretary-general of China Photovoltaic Industry Alliance, pointed it out that China saw 64% year-on-year growth in installed capacity in 2012. Our goal this year is 10 GW, 60% of which will be contributed by distributed PV. Since domestic market is seeing fast growth, we have to cope with huge production capacity at the same time. Currently, PV industry is developing at a rapid pace inJapan, Africa, South America and other regions, which attracts many Chinese partners. PV Guangzhou 2013 will set up an effective platform for them and contribute to solving the problem of production capacity.

State Council’s six regulatory measures are expected to set off a new round of development in PV industry.

PV Guangzhou 2013 Organizing Committee

Contact Person: Ms. Eve Cheng

Tel: +86 20 29188156                              Fax: +86 20 82579220

E-mail: marketing7@grandeurhk.com    Website: http://www.pvguangzhou.com