The new energy industry, especially the solar photovoltaic sector, has experienced rapid growth in recent years. China's photovoltaic output has held the top position globally for five consecutive years. However, challenges such as market homogenization, overcapacity, and low-cost disorderly competition have emerged. Additionally, unfavorable international factors have led to a slowdown in the export of Chinese photovoltaic products over the past two years, causing temporary difficulties for the industry.
In the face of adversity, only the brave can survive, and the wise can thrive. In response to this challenging situation, the Hangzhou Municipal Economic and Information Commission emphasized the need to promote industrial transformation and upgrading, opening up new markets, and shifting from pure product suppliers to comprehensive service and application providers.
To support the development of the photovoltaic industry, the State Council issued "Several Opinions on Promoting the Healthy Development of the Photovoltaic Industry" in July this year, aiming to reach a total installed capacity of 35 million kilowatts by 2015. This policy is expected to bring significant benefits to the industry's expansion. In August, the Ministry of Industry and Information Technology released the "Regulations on the Standardization of Photovoltaic Manufacturing Industry (Draft for Comment)," marking a continuation of existing policies and paving the way for future growth.
Zhejiang Province is also actively developing new policies to guide and promote the development of the new energy industry. From 2012 to the first half of this year, Hangzhou's new energy sector, particularly the photovoltaic industry, faced a tough period but also saw initial success through differentiated innovation that helped reduce homogenous competition.
According to officials from the Hangzhou Municipal Economic and Information Committee, positive changes are emerging in domestic policy and the market, with faster industry restructuring and improved demand. Although uncertainties remain, the overall situation is improving. Leading enterprises are driving smaller and medium-sized PV companies to move away from heavy reliance on subsidies and price-based competition, focusing instead on innovation and new business models.
Hangzhou's photovoltaic industry has developed strong innovation advantages in areas such as auxiliary materials, BIPV applications, and micro-grid systems. According to statistics, in 2012, the city's solar energy and other new energy industries generated sales of 18.723 billion yuan and added value of 4.405 billion yuan. While European and North American exports declined, there was an upward trend in exports to emerging markets in Africa and Latin America, adding 19 new countries and regions to its export portfolio.
In the first half of this year, the new energy industry's added value reached 1.822 billion yuan, with the decline narrowing by 0.3 percentage points compared to the first quarter. Despite these improvements, the industry still faces challenges, including funding shortages due to long-term investment cycles and limited access to financing.
Policy support remains lagging in Hangzhou compared to cities like Jiangsu, Hefei, Ningbo, and Jiaxing, which have already introduced localized support measures. Officials recommend encouraging industry collaboration, promoting product differentiation, and focusing on sustainable growth rather than blind production and sales.
Looking ahead, the road to transformation involves innovation, high-end development, and exploring new markets. Companies like Chint Solar have successfully shifted their focus from component sales to green energy solutions, developed new technologies, and expanded into diverse markets. Their strategic adjustments allowed them to avoid the worst impacts of the EU crisis and achieve strong performance in 2012.
In Hangzhou, several innovative enterprises are thriving by targeting niche markets and reducing low-cost competition. These companies are driving healthy and sustainable growth in the industry. The national push for distributed photovoltaic power generation is seen as a key driver for the industry’s future, with favorable policies and local initiatives expected to boost development.
With the implementation of supportive policies, including electricity price subsidies for distributed photovoltaic projects, the industry is entering a golden decade. As more projects come online and local policies take shape, Hangzhou’s new energy sector is poised for a new wave of growth and transformation.
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