BEIJING, Sept 2 (Reuters) - A Chinese solar sector association and the country's industry ministry are proposing reforms to power plant tendering to address plunging equipment prices that have led manufacturers to make losses.
“If these are all true, it will send a positive signal to the solar PV industry, as such policies will suppress the continued decline of solar PV prices,” said Lin Boqiang, dean of Xiamen University’s China Institute for Studies in Energy Policy.
Forecasts show China's solar build this year will be heavily outpaced by growth in its photovoltaic (PV) module manufacturing capacity, raising the prospect the country will export more solar panels despite a trade backlash in Europe and the U.S.
Stocks of several Chinese solar companies surged on Wednesday amid rumours that Beijing will unveil new rules for solar photovoltaic (PV) manufacturing to curb oversupply and a price war in the sector. Xinyi Solar jumped 12 per cent to HK$3.80, and GCL Technology Holdings rallied 25 per cent to HK$1.50 in Hong Kong.
China's solar panel producers have urged government intervention to shore up prices kept low by overcapacity even as China's trading partners have complained about the effects of overproduction on their own domestic industries.
For this year, analysts expect China to add 500-600 GW of PV module production capacity, a 60-70% increase, well above growth in solar projects. That would force manufacturers to export even more to markets such as Europe and the U.S., which doubled tariffs on cells used to make solar panels from 25% to 50%.