China to regulate local photovoltaic companies to boost industry

25 September 2013 10:22  [Source: ICIS news]

SINGAPORE (ICIS)--China will regulate photovoltaic projects, as well as strengthen management in the photovoltaic industry, as it aims to accelerate the transformation and upgrading of the industry, the state-owned news agency Xinhua reported on Wednesday. 

China's Ministry of Industry and Information Technology (MIIT) has announced regulations to reduce excessive photovoltaic production capacity, which will be effective from October 2013, according to industry sources said.

The regulations set a minimum annual production capacity of 3,000 tonnes for each polysilicon manufacturer, 1,000 tonnes for each solar-grade crystalline silicon ingot manufacturer, 50m units for each solar-grade crystalline silicon wafer manufacturer, 200 megawatt-peak (MWp) for each crystalline silicon solar cell or photovoltaic module manufacturer, and 50MWp for each thin-film photovoltaic module manufacturer.

Given the minimum production capacity that is being set, merger and restructuring is expected, with small photovoltaic companies to be eliminated in the process, Xinhua reported.

It is hoped that the merger and restructuring would help improve the development of the photovoltaic industry, one market source said.

However, most small-to-middle sized photovoltaic companies have objected to the regulations, as their interests are at risk, the market source added.

Moreover, the new photovoltaic companies must allocate an annual spending on research and development equivalent to at least 3% of their yearly revenues, and the total sum must not be smaller than yuan (CNY) 10m ($1.6m), according to the announcement from MIIT.

($1 = CNY6.12)

By: Viola Pan
+65 6780 4359

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