L R AS Published on Sunday 13 September 2020 - n° 331 - Categories:China
The economic situation in the sector in China in the second half of the year
As the period of power plant construction begins in China, the price of panels rises in conjunction with supply problems. Prices could reach $0.259 / W which could discourage developers.
This year, some principals issued their tenders earlier than in July and August,
period when the major power generation groups launch their calls for tenders for the completion of construction sites at the end of the year. This is the usual seasonality. A volume of 20 GW would have been proposed, but the developers would be reluctant to commit to a start date and especially to a completion date.
The developers are looking for prices for the panels. Some will postpone the commissioning even if it means losing the 2020 tariff in order to obtain cheaper panels. Most of the major players in the market should complete the connection this year, as they have a means of exerting pressure, even on the major panel producers.
This year, the grant programme has tendered 26 GW, while the fair-price projects have reached a volume of 33 GW. This indicates that construction in the solar sector will be difficult in the second half of the year.
As a result, there is uncertainty about which projects will actually be completed this year. This uncertainty leads IHS to reduce its 2020 forecast to 40 or 41 GW from 45 GW previously. The figure that will be reached depends on the industry's capacity to supply the panels requested at a reasonable price.
PV Tech of 7 September