Review on March 2023

Dear Readers, here we have prepared the review on the last month.?

1.??? Shandong is planning to suspend the generation of PV plant which fails to deploy the required energy storage system (ESS), the capacity under penalty will be as much as twice the ESS capacity contracted between the Authority and asset owner. Even though the mentioned regulation is yet a draft, we could see the ambition of the local government to accelerate the construction of a modern energy spot market. Thanks to its relative high tariff and good solar resources, Shandong Province is among the Top 3 in China in terms of the installed capacity of DG, besides, Shandong is also the pioneer in exploring the possibility for DG in participating in the spot market where negative prices appeared for the first time. We believe that a comprehensive transformation of energy market is happening in China and the test drive is undergoing in some provinces.

2.????In January and February this year, a total of 20.37GW PV commissioned in China, investment into PV field grew by 200%. According to NEA, the new PV capacity took 58% of the total installed capacity in the same period. Until the end of February, there is in total 413GW of PV installed in China and it is highly likely to surpass the hydropower in China.

3.????In March, over 6.4GW PV module tenders were awarded, the tenderees are HUANENG, CNNC, CHN ENERGY among other state-owned enterprises. The quoted prices were between 1.626 RMB/w and 1.936 RMB/w with an average price of 1.715 RMB/w.

4.????According to Gessey, during the first 2 months of 2023, 27.624GW PV solar were exported to overseas markets. Breaking down the sum, 14.282GW in January and 13.342GW in February, both are the same as last year. Netherlands continues to be No.1 as importer, with a YoY growth of 85% reaching 7.6GW and Brazil as No.2 with 3GW imported. It is believed that the EU and Latin America are going to keep this positive trend in the next few months.

5.????International Key Markets Q2 Prediction

According to information from HIS Markit, BNEF, Gessey and other public sources, we have made up a chart indicating the possible new PV capacity in key markets during the period of 2023Q2.

6.????Supply Chain Review

• The new production capacities of material are being released stably; the long-term decreasing trend has a wide recognition.
• The wafer capacity is almost double the global demand, while producers are still expanding the capacity. The situation of over-supply is yet to continue.

Thank you for your time! See you next month!