Solar News: Week 2, 2023.

1. The Importance of Developing New Energy Storage Technologies:

The development of new energy storage technologies, such as lithium-ion batteries, flow batteries, flywheels, compressed air, hydrogen, and thermal energy storage, is discussed as being necessary to improve the regulation of the power system and ensure safe operation as the scale of new energy increases and the load peak-valley difference widens. These technologies have a shorter construction period, more flexible site selection, and stronger adjustment capabilities, making them more compatible with the development and consumption of new energy sources such as wind and solar power. The "14th Five-Year Plan" is implementing the new energy storage profit model and the technology has made technological breakthroughs during the "13th Five-Year Plan" period. According to the National Energy Administration, new energy storage mainly refers to "energy storage projects that export electricity as the main form in addition to pumped storage and provide external services."

??Source: Energy Trend Storage

2. China's Investment in High-Efficiency Heterojunction Photovoltaic Production and Technology:

The State Power Investment Corporation has begun construction on a 5 GW high-efficiency heterojunction photovoltaic cell and module production base project with a total investment of over 5 billion yuan. The project, located in Longgang New City, is set to complete its first phase in September 2023 and is expected to promote the market application of high-efficiency heterojunction battery module products and accelerate the development of the power production industry and new energy industry in Longgang City. Additionally, Allwin Communications plans to jointly build a 5 GW high-efficiency heterojunction photovoltaic project with Entropy (Shanghai) Energy Technology Co., Ltd, with a total investment of 834 million yuan. The project is expected to be completed in 3 years and will include a new factory building of about 50,000 square meters. Gaoce shares and Risen Energy also signed a strategic cooperation framework agreement to jointly promote the field of N-type heterojunction ultra-thin half-chip slicing and cutting equipment, diamond wire, and other technical fields.

??Source: Solarzoom

3. Rebound or Improvement? Photovoltaic Industry Sees Sharp Correction and Stabilization:

The photovoltaic industry has seen a sharp correction in the latter half of the year after nearly two years of continuous growth. The question remains whether the rebound in sentiment is due to a rebound or an improvement in demand. The market is generally optimistic about the downstream, as the current low range is expected to stimulate the enthusiasm for downstream installations and bring about a recovery in terminal demand next year.

The price drop in the industry chain started with upstream silicon materials, and the prices of silicon wafers, batteries, and components have been falling all the way, and the price war has become increasingly fierce. After experiencing a sharp drop, the middle and lower reaches began to stabilize or even rebound last week. The slight recovery in the midstream segment is attributed to the increase in the operating rate of downstream components. However, domestic polysilicon companies are still in a stalemate game with downstream procurement companies, and the final landing price of silicon materials is still uncertain.

??Source: PV tech China

4. Photovoltaic Industry Faces Reshuffle in 2023: Factors and Implications:

The photovoltaic industry is expected to face a reshuffle in 2023, as several factors will contribute to this shift.

Firstly, there has been a significant expansion in production capacity, with investment in photovoltaic production capacity reaching over 800 billion in 2021, which has been called "crazy" by some.

Secondly, despite the global demand for photovoltaics, the excess capacity has become a reality, with production capacity expectations in some links being four to five times the current market demand.

Thirdly, the price of photovoltaics has dropped significantly, with the price of silicon wafers almost cut in half and the price of silicon materials falling below 150 yuan/kg.

Fourthly, there is a strong wait-and-see attitude of "buying up and not buying down" in the special stage around the Spring Festival.

Fifthly, there will be fierce competition and reshuffle in the photovoltaic industry as it enters a reasonable price level in 2023.

Sixthly, the concentration of the module link is likely to rise instead of falling amid the hustle and bustle of capital attacks.

Seventhly, large-scale enterprises with vertical integration strength will seize the market by relying on their comprehensive capabilities when the "good days" come.

Eighthly, the industry is ushering in unprecedented huge expectations, but various hidden risks are also increasing.

Ninthly, the beginning of 2023 has become a new "critical point" for photovoltaics and a new round of reshuffling in the industry will begin.

Tenthly, the variables and elements that lead to a new round of reshuffle include the expansion of production capacity, excess capacity, price drops, and the wait-and-see attitude of the market.

To survive in this reshuffle period, companies must maintain a prudent financial strategy, have core technology, and a mature evaluation mechanism for commercializing technology and mitigating risks.

??Source: Global PV

5. Solar Market News:

5.1. Germany Increases Maximum Electricity Tariff for Rooftop Solar and Wind Ahead of 2023 Tender for Renewable Energy Projects:

Germany's Federal Network Agency (Bundesnetzagentur) has decided to increase the maximum electricity tariff for rooftop solar and wind ahead of a tender for renewable energy projects in 2023. The Federal Network Agency said that it hoped that the increase in electricity prices would lead to an increase in the number of tenders for renewable energy projects amid disappointing results in 2022 for photovoltaic and wind power tenders. The new maximum electricity price for rooftop solar PV systems in Germany is set at 0.1125 EUR/kWh (US$ 0.12 /kWh), onshore wind power prices will be 0.073 EUR/kWh (US$ 0.77 /kWh) and the maximum price for ground solar projects is currently being determined. The increase in the maximum price would lead to an increase in tender volume and thus promote competition in the German PV market. Germany's goal is to reach 215GW of photovoltaic capacity by 2030. The EU introduced emergency legislation last year to shorten the permitting time for rooftop solar and installations mounted on artificial structures to no more than one month.

??Source: PV tech China

5.2. US solar assets underperforming, risking damage to the industry's reputation long-term, according to kWh Analytics:

According to data analytics and insurtech company kWh Analytics, the US solar business is at risk of having its reputation tarnished in the long run as a result of solar assets not performing up to expectations across all segments. According to its most recent annual Solar Generation Index, the US solar industry is still experiencing asset underperformance. This trend is attributed, among other things, to a lack of historical data, optimistic performance estimates, and a focus on module performance rather than inverter availability. According to the analysis, it's possible that years from now, investors in PV projects won't see their expected return profiles.

??Source: PV tech org

5.3. Austria Accelerates Deployment of Solar PV with Simplified Environmental Permits and Increased Funding:

The government of Austria has proposed initiatives to accelerate the adoption of solar PV, including the simplification of environmental licenses and an increase in funding to approximately €600 million in 2023. Solar PV project approval has been accelerated thanks to an amendment to the nation's environmental impact assessment (EIA), which also eliminates the need to halt applications that receive no objections. According to the trade group Solar Power Europe, funding for solar PV will be expanded with the goal of boosting rooftop solar PV in the residential market. Last year, Austria installed 1.3 GW of solar PV systems. The EU has additionally asked its members to speed up the installation of solar PV in order to reach 1TW of installed capacity by 2030.

??Source: PV tech org

5.4. Green Genius Plans 100MW Solar PV Project in Latvia with €90 Million Investment:

Green Genius, a renewables developer, plans to construct a 100MW solar PV project in Latvia, with an investment of nearly €90 million. The project will be located in Jekabpils and is expected to be fully authorized and ready for construction by June of this year. The company, which is present in eight European countries, has a project pipeline of 1.5 GW.

??Source: PV tech org

5.5. Is a 3 TW Annual Solar Addition Goal Achievable in the Near Future?

The world could see 3,000 GW of solar additions per year by 2032, according to a panel discussion at the "Forum New Energy World" conference in Berlin. This ambitious goal was first proposed by PV magazine and the forum ten years ago, with a campaign aiming for 300 GW of annual global PV additions by 2025. Despite initial skepticism, the German government has since set a goal of 215 GW of solar this decade and the world is on track to hit 300 GW of new solar installations this year. With the electrification of heat, transport, and other sectors opening up potentially huge markets for solar, it is suggested that an increased solar ambition is necessary to address climate change and energy security.

??Source: PV magazine.