The World's #1 Renewable Energy Network for News, Information, and Companies.

Upheavals in the Chinese Polysilicon Market May Lead to Further Solar PV Cost Reductions

New standards for polysilicon manufacturers may cause shakeup in the market but ultimately drive down costs, analysts say.

In late January, the Chinese government released its “Polysilicon Industry Access Standards” specifying rules and restrictions for polysilicon manufacturers relating to site selection, energy consumption, environment protection, project capacity and more.

Specifically the standard states that any new solar polysilicon manufacturing facility must adhere to the following:

  • Facilities need to have an annual production capacity of at least 3,000 tons;
  • Facilities may not be situated within 1,000 kilometers (620 miles) of any nature reserve, headwater areas or major residential areas;
  • The electricity consumption of the solar-grade polysilicon reduction must be less than 80kWh/kg and further reduced to lower than 60kwh/kg by the end of 2011
  • The recycle rate of silicon tetrachloride, hydrogen chloride, and hydrogen in the reduction tail gas shall be not less than 98.5 percent, 99 percent and 99 percent, respectively.

Finally, solar polysilicon production lines whose integrated electricity consumption is higher than 200kWh/kg must be eliminated by the end of 2011.

Chinese solar industry experts expect serious fall-out to occur. According to Meng Xiangan, deputy director of China Renewable Energy Society, although the standard is necessary for the long-term and stable development of the industry, a majority of companies may not meet requirements due to technology and capital difficulties. Small and medium-sized firms not meeting the requirements will be forced out.

Dou Zeyun, an analyst at Ping An Securities said that even though the standard may slow down China’s ability to grow its supply chain for the solar industry, ultimately it will increase the quality of the country’s polysilicon and significantly reduce production costs, driving long-term and healthy development of the country’s PV industry.

Several players within the sector concurred, adding that the standard will change China's production pattern of polysilicon and bring about a reshuffle and consolidation of the industry. The weak will be forced out, while the strong will remain with their position further strengthened.

For 2011, industrial analysts said cutbacks in PV subsidies in some countries in Europe (most notably Germany, Italy, the Czech Republic and France), may have an adverse effect on polysilicon sales. However, this will be offset by rapidly declining costs for polysilicon-related raw materials. 

 

Image: courtesy www.futureatlas.com via Flickr.

RELATED ARTICLES

Is Japan the Next Boom Market for the Geothermal Energy Industry?

Meg Cichon, Associate Editor As Japan continues to bounce back from the Fukushima nuclear disaster in 2011, it has focused on renewable energy to lessen its reliance on nuclear and carbon-heavy fossil fuels. In just two years, Japan installed more than...
Slow down sign

Reality Check: Maybe Energy Storage Isn't Ready for Prime Time

Meg Cichon, Associate Editor Highlighting the growth of the energy storage market at the at the 2015 Energy Storage Association Conference in Dallas, Texas, Oncor’s  VP of Transmission Operations Wes Speed compared the industry to the Texas rain: ...
Renewable energy investment

Smart Investments: Ditch Your CD for Renewable Energy Yieldco Dividends

Susan Kraemer, Correspondent Renewable energy yieldcos have gain traction in the past few years, and are certainly making it easier to develop projects. But many don’t realize that yieldcos also offer solid financial benefits for the average person who...
Risk and reward

Managing the Risks of Renewable Energy Projects in Developing Countries

Jeffrey Karp, Jim Wrathall and Morgan Gerard, Sullivan & Worcester Driven by rapid expansion in developing countries, renewables are becoming a significant source of the world’s power.  According to the United Nations Environmental Programme’s (UNEP) 9th “Global Trends in Renewable En...
Nanjing Shanglong Communications Liu Yuanyuan is Director of Operations and Co-Founder of Nanjing Shanglong Communications. Liu Yuanyuan previously held the position of office manager at the London Financial Times' China translation and editoria...

CURRENT MAGAZINE ISSUE

Volume 18, Issue 3
1505REW_C11

STAY CONNECTED

To register for our free
e-Newsletters, subscribe today:

SOCIAL ACTIVITY

Tweet the Editors! @megcichon @jennrunyon

FEATURED PARTNERS



EVENTS

Mastering RETScreen® 4 for Clean Energy Project Analysis

Hands-on modeling class using RETScreen 4. Michael Ross designed this co...

RECAM WEEK

RECAM WEEK will bring together the incredibly successful SPG Central Am...

CIREC WEEK

Chile is still considered to be one of the world’s hottest m...

COMPANY BLOGS

What Is a Solar PPA And How Does It Work?

When talking about solar financing, the solar power purchase agreement (...

Metro Gold Line Operations Campus to meet LEED Gold Standard with LSX

Newly built by Kiewit, the Los Angeles County Metropolitan Tra...

Lumos and Porsche combine forces at Dwell on Design

Come see us at Dwell on Design at the Los Angeles Convent...

NEWSLETTERS

Renewable Energy: Subscribe Now

Solar Energy: Subscribe Now

Wind Energy: Subscribe Now

Geothermal Energy: Subscribe Now

Bioenergy: Subscribe Now  

 

FEATURED PARTNERS