CPIA Vice Chairman Wang Bohua: Annual PV Installation Will Reach 70GW Before 2025

PVTIME – On December 10, at the 2020 China Photovoltaic Industry Association Annual General Meeting, Wang Bohua, Vice Chairman and Secretary-General of China Photovoltaic Industry Association, gave a development review report of China’s photovoltaic industry during the “13th Five-Year Plan” period and offered his outlook on the industry in the upcoming “14th Five-Year Plan” period.

Wang Bohua speaking at the 2020 China Photovoltaic Industry Association Annual General Meeting

Revisiting the “13th Five-Year Plan” Period: China’s Preeminent PV Industry

Wang Bohua first revisited the brilliant achievements of China’s PV industry during the “13th Five-Year Plan” period where he emphasizes that in terms of trade, technology, and industry performance, Chinese PV companies have made all-round progress during the period. He stated, “In both application and manufacturing process, China’s photovoltaics has been the number one in the world for many years, and will continue to maintain its position. There is no end in sight.” China’s PV industry, as proven by multiple comparison surveys on innovation power done by research institutions such as Wood Makenzie, is far ahead and will maintain its place for many years.

Wang Bohua emphasized that these achievements are the result of the joint efforts of the Chinese government, enterprises, and scientific research institutions. Taking 2020 as an example, in a year where many industries have been affected by the pandemic, China’s PV industry managed to maintain rapid growth because the country has the world’s best policies and environment to support photovoltaic development. From planning, guidance, consumption, acquisition, finance, taxation, land and other aspects, China has introduced an average of 15 to 20 support policies every year, ensuring that Chinese photovoltaic companies have the best environment to grow. During the “13th Five-Year Plan” period, costs in all aspects have been steadily reduced while manufacturing capacity has doubled, and grid parity is not far away.

Outlook on the “14th Five-Year Plan” Period: PV Will Become the World’s Main Power Source

Wang Bohua went on to share his outlook on the development of photovoltaics during the “14th Five-Year Plan” period. According to the International Energy Agency (IEA)’s analysis and predictions, renewable energy will be able to meet 99% of the increase in global electricity demand from 2019 to 2025. By 2025, photovoltaics will account for 60% of all new renewable energy installed capacity, and wind energy will account for 30%.

Wang Bohua predicts that under the energy transition scenario, by 2030, solar and wind power will dominate and renewable energy will account for 57% of all global power generation. He also said that the pandemic has made investors more aware of the huge potential in investing in renewables. Wang predicts that, from 2019 to 2030, the cumulative investment in renewable energy, energy efficiency, electrification, and infrastructure will increase to $49 trillion USD. The investment in renewable energy will be about 11 trillion USD, and the annual average investment in the photovoltaic industry will reach 318 billion USD with China taking the lead. Wang went on to express his optimism and confidence in the future development of the industry. He stressed that if China wants to reach its carbon neutrality target, it must achieve 70GW in annual installed capacity each year during the “14th Five-Year Plan” period, and leading enterprises have to improve the industrial layout by mainly focusing on production expansions and technological upgrading.

Wang Bohua added that China’s photovoltaic industry has formed and optimized its industry supply chain over the years and will continue to do so. In terms of industrial cooperation, there have been many successful cases exploring combining photovoltaics with transportation, construction, and communications, etc. These are the future markets for photovoltaic companies.