L R AS Published on Saturday 10 September 2022 - n° 415 - Categories:silicon mono/multi, brochures
Sharp rise in electricity prices in Chinese Mongolia
The authorities of the province of Inner Mongolia (China) changed the price of the electricity they supply on 30 August with immediate effect. It was previously low, ranging from
0.25 to 0.31 RMB per kWh. Its price has just increased to RMB 0.45/kWh
These earlier low prices had attracted silicon manufacturers who did not want to stay in Xinjiang. Silicon production reached 66,000 tonnes last year (13% of Chinese production) with a capacity of 74,000 tonnes. It is expected to reach 358,000 tonnes in 2023, or nearly 25% of Chinese production, with a capacity of 522,000 tonnes.
As a result of this price increase, the cost of producing silicon from Mongolia will increase by 12-15%. This impact can be attributed to the fact that energy costs represent about 35% of silicon production costs and 15% of wafer production costs. Wafer costs will increase from RMB 0.008/W to RMB 0.010/W.
Following the announcement, the two major manufacturers, LONGi and Zhonghuan, said they were carefully assessing the potential impact of the price change. This is not the first time that a Chinese region or province has radically changed its electricity pricing policy.
PV Magazine of 9 September 2022