Development of photovoltaic power generation in China

Advantages

China is blessed with abundant solar energy resources, with a theoretical reserve of approximately 1.7 billion tons of standard coal equivalent per year. This makes the potential for solar energy development vast and promising. Spanning over 5,000 kilometers from north to south and east to west, China has a diverse climate and geography that ensures significant solar radiation across most regions. In many areas, the annual average daily solar radiation exceeds 4 kWh per square meter, while in Tibet, it can reach up to 7 kWh per square meter. With more than 2,000 hours of annual sunshine, China's solar potential is comparable to that of the United States and far superior to Europe and Japan, making it an ideal country for solar energy expansion.

Development Path

Research on solar cells in China began in 1958, and by 1959, the first practical solar cell was successfully developed. The photovoltaic power generation industry started in the 1970s, with its first application in space when solar cells were used on China’s second satellite in 1971. Ground-based applications followed in 1973, and monocrystalline silicon solar cells became commercially available in 1979. From the mid-1990s onward, the industry entered a phase of steady growth, with production capacity increasing gradually. By the early 21st century, China had entered a period of rapid expansion, driven by both domestic demand and global trends.

China’s photovoltaic industry has seen two major transformations. The first occurred in the late 1980s during a period of economic reform and opening-up, when several solar cell production lines were introduced, significantly boosting production capacity from just hundreds of kilowatts to 4.5 megawatts across six factories. Investments came primarily from government agencies and large enterprises. The second major leap after 2000 was influenced by international projects and market demands. Initiatives like the "Guangming Project" in 2002 and the "Power Transmission to the Village" project in 2006 helped promote solar technology nationwide, accelerating the industry's growth.

By the end of 2007, China’s cumulative installed photovoltaic capacity reached 100 MW, with over 50 companies producing solar cells. The total production capacity was 2,900 MW, and the annual output reached 1,188 MW, surpassing Japan and Europe. A complete industrial chain had been established, including raw material production and system construction. Significant progress was made in polysilicon production, breaking through the 1,000-ton threshold and overcoming key bottlenecks in solar cell manufacturing. However, the sector also faced challenges such as overinvestment, intense competition, and a lack of innovation.

In June 2009, a joint venture between China Guangdong Nuclear Power Development Co., Ltd., Jiangsu Best Solar Technology Co., Ltd., and Belgian Enfinity Co., Ltd. won the bid for China’s first photovoltaic power demonstration project in Dunhuang, Gansu, at a price of 1.0928 yuan per kWh. The 10 MW grid-connected plant marked a turning point, setting a benchmark for future projects and providing a foundation for national subsidy policies. It signaled the beginning of large-scale grid-connected solar power development in China.

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