The new energy industry, particularly the solar photovoltaic sector, has experienced rapid growth in recent years. China's photovoltaic output has remained the highest in the world for five consecutive years. However, challenges such as market homogenization, overcapacity, and low-cost, disorderly competition have emerged. Additionally, unfavorable international conditions have led to a decline in photovoltaic exports over the past two years, putting the industry under significant pressure.
Despite these difficulties, the industry is now focusing on transformation and innovation. As stated by officials from the Hangzhou Municipal Economic and Information Commission, the goal is to shift from being mere product suppliers to comprehensive providers of products, services, and applications. This strategic move aims to open up new markets and create sustainable value.
To support this transition, the State Council issued "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry" in July. The policy sets a target of achieving at least 35 million kilowatts of total installed photovoltaic capacity by 2015, which is expected to drive significant growth in the sector. In August, the Ministry of Industry and Information Technology also released the "Regulations on the Standardization of Photovoltaic Manufacturing Industry (Draft for Comment)," signaling continued policy development and long-term support for the industry.
Zhejiang Province is also working on new policies to guide and promote the development of the new energy industry. According to officials, the photovoltaic sector in Hangzhou has shown signs of improvement. From 2012 to the first half of this year, the industry faced a tough period but began to differentiate itself through innovation, reducing the impact of homogenous competition. Leading enterprises are driving change, and small and medium-sized companies are moving away from excessive price competition and policy dependency.
According to the Hangzhou Municipal Bureau of Statistics, the city’s solar energy and other new energy industries generated sales worth 18.723 billion yuan in 2012, with an added value of 4.405 billion yuan. While European and North American exports declined, emerging markets in Africa and Latin America showed positive growth. The export market expanded to include 19 countries and regions.
In the first half of this year, the added value of the new energy industry reached 1.822 billion yuan, with the decline rate narrowing compared to the first quarter. Despite progress, challenges remain. Funding shortages and delayed local support policies are still major concerns.
Experts recommend that the city encourage innovation, collaboration between large and small enterprises, and market diversification. They also emphasize the need for businesses to focus on product differentiation, market acceptance, and financial stability rather than just production and sales.
The road ahead involves innovation, high-end development, and exploring new markets. With the agreement between China and the EU on photovoltaic exports, the era of low-price competition in Europe is ending. Companies must now adapt to higher costs and limited export volumes by seeking alternative markets.
Hangzhou-based companies like Chint Solar have successfully transformed their strategies. By shifting from component sales to green energy solutions and developing advanced technologies, they have reduced costs and diversified their markets. Their global sales now cover Japan, South Africa, India, and more, helping them avoid the worst impacts of the EU crisis.
Industry insiders note that innovative companies in Hangzhou are thriving by focusing on niche markets and differentiated products. Enterprises such as Chint, Sonny, Heda, and Longjing are leading the way, while smaller firms like Sola and Tianyu Solar are also making strides in specialized areas.
Policy support plays a crucial role in the industry’s recovery. The promotion of distributed photovoltaic power generation has become a national priority. Projects like the 50MW demonstration zone in Tonglu are paving the way for a new era of market-driven development. The National Development and Reform Commission has also introduced subsidies for electricity generation, further encouraging investment and growth.
As favorable policies continue to roll out and local support measures are expected soon, the Hangzhou new energy industry is poised for a strong recovery. With innovation, strategic transformation, and policy backing, the sector is well on its way to a brighter future.
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