The past few years has seen China supplant European countries as the world’s largest solar manufacturer as well as begin to dominate the installation process as well, with Chinese solar installations becoming more and more a mainstay in the electricity generation mix.
This trend will only continue, especially in light of news posted on the government’s website, which states that China is aiming to add 10 GW of solar power a year over the next three years. This would boost China’s solar capacity fivefold, up to at least 35 GW by 2015.
As a result of this news, both Xinyu-based LDK Solar Co. (LDK) and Wuxi-based Suntech Power Holdings Co. rose more than 19% in New York trading.
Bloomberg analysts believe that the added demand created by installing more solar photovoltaic installations will help alleviate industry oversupply, oversupply that contributed to a 20% plunge in the average price of solar panels in 2012.
“I think they’re going to sustain these high levels of growth and soak up some of the excess capacity, maybe getting up to 8 to 9 gigawatts a year,” Angelo Zino, an analyst at Standard & Poor’s in New York, said today in an interview.
The statement released by the Chinese government is available to read here, but you’ll need a pretty decent grasp of a) Chinese or b) Google translator. China is prepared to provide credit support to support profitable photovoltaic manufacturers and encourage restructuring and overseas investment, though no measuring stick for ‘profitable’ was given.
This comes at a rough time for the Chinese solar industry as they have found themselves in disfavour in Europe and the US. However, tariffs and other restrictions may soon be worked out.