What’s new: China’s exports of photovoltaic products jumped 13% year-on-year in the first half of 2023 on the back of strong demand from Europe, a region that is doubling down on decarbonization.
In the six months through June, exports of silicon wafers, cells and modules reached more than $29 billion, Wang Bohua, honorary chairman of the China Photovoltaic Industry Association (CPIA), said Thursday at an industry seminar.
Exports of silicon wafers and cells each grew more than 20% year-on-year each month during the period, lifting their combined share in total exports by 2.3 percentage points, Wang said.
From January to May, Europe remained the largest market for Chinese-made photovoltaic products, accounting for about 50% of exports, while shipments to Africa grew more than 120% year-on-year the same period, making the continent the fastest-growing market for China’s solar products in that time frame, according to CPIA data.
In the second half, growth of Chinese photovoltaic exports will likely slow as Europe grapples with problems involving labor, land use and grid integration, according to Wang.
The background: In an effort to accelerate its transition toward climate neutrality, the European Commission in March proposed the Net-Zero Industry Act to help strengthen Europe’s manufacturing capacity of net-zero technologies including solar photovoltaic and solar thermal technologies.
While China remains the dominant player, its share of the global manufacturing capacity of photovoltaic products could decrease to 75% by 2027 from today’s 90% amid emerging signs of diversification in global supply chains, according to a report published in December by the International Energy Agency.
Related: China’s Newly Installed Solar Capacity, Module Exports Jump in Q1
Contact reporter Ding Yi (yiding@caixin.com) and editor Bertrand Teo (bertrandteo@caixin.com)
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