China’s photovoltaics’ “going overseas” momentum in 2024 remains unabated, but the wind direction has changed. China’s photovoltaics has entered the 2.0 era. The “big stick” of trade sanctions from the United States has made it unprofitable for Chinese photovoltaic companies to “go overseas” by Cambodia, Malaysia, Thailand and Vietnam. Under the dilemma, it “forced” a new way for China’s photovoltaic production capacity to go overseas, and many companies flocked to emerging markets and blossomed from all sides. In the Middle East, at least 8 Chinese photovoltaic companies have announced plans to build factories, and are mainly leading companies, taking the prototype of photovoltaic industry clusters. Brazil, Mexico, and Egypt and Angola in Latin America have also attracted some companies to visit. Southeast Asian countries have become destinations for auxiliary materials companies to “crowd” overseas.
According to incomplete statistics from Huaxia Energy Network, a total of 21 overseas factories will be announced in 2024 (see the previous article of Huaxia Energy Network “21 overseas factories announced to be invested in this year! The direction of photovoltaic overseas winds has changed”). In 2025, a large number of planned production capacity will be put into production, and China’s photovoltaics will enter a “harvest period” for overseas production. Photovoltaic companies that go overseas in advance will receive generous rewards. According to Huaxia Energy Network Consulting, the new installed capacity of the photovoltaic market in Europe and America is expected to reach 101.5 GW and 92.8 GW in 2025. The new photovoltaic installed capacity in the Middle East and Africa market reached 37.5GW, and the installed capacity demand was mainly contributed by Saudi Arabia, the UAE and South Africa. However, it is worth reminding that Chinese photovoltaic companies that are moving overseas urgently need to break out of the thinking framework of low-price competition and reverse the situation of “internal circulation and externalization, and low-price criticism”. The situation that the industry least wants to see is that these companies are just “turning” overseas, rather than going internationally to become global giants. In addition, the risk of production capacity after going overseas is still huge. If the destination country introduces some targeted restrictive measures, Chinese photovoltaic companies will be very uncomfortable at that time – they cannot move their production capacity and can only be at the mercy.
On the one hand, distributed electricity prices are not optimistic. In 2024, many provinces with high new energy penetration rates have seen electricity prices at noon when photovoltaics are launched many times, and electricity prices are as low as 0.1-0.2 yuan/kWh, Shandong and Hebei even have extremely low prices of 5 cents or even 3 cents. There are also some places where photovoltaic abandonment problems occur during the period of large-scale photovoltaic emissions, and negative electricity prices are also common. In response, industry insiders shouted: “If it is allowed to develop, half of the new energy will die next year.” On the other hand, distributed photovoltaic assets have suffered a “big sale”. In 2024, many large central state-owned enterprises investors stopped or suspended the investment development and acquisition of distributed photovoltaics. A large number of photovoltaic power station assets in the hands of power generation groups and leading enterprises may be listed and transferred or sold to local industrial capital, and distributed photovoltaic power stations have changed from the previous “hot cake” to the “hot potato”.
In 2025, all provinces and cities will be further encouraged and explored around the “Green Electricity Direct Supply” model, and policy details are expected to be issued at a faster pace. On this basis, the integrated microgrid and “source, grid, load and storage” projects are expected to usher in development in more regions. In addition, in 2025, the spot trading markets of new energy power in more provinces and cities will be officially launched, which will bring a larger impact on distributed electricity prices. The industry calls for the adjustment of electricity price policy to be implemented as soon as possible. At the same time, in order to improve the investment enthusiasm of new energy, the industry expects that relevant policies to protect the returns of distributed investors through policy subsidies may be introduced, and the problems of low electricity prices and negative electricity prices of photovoltaics are expected to be improved.
For us, Multifit, we need to seize this opportunity and take advantage of the continuous expansion of the photovoltaic market to introduce our photovoltaic equipment and photovoltaic cleaning equipment to our potential customers, so that they can familiarize themselves with the performance and quality of our products, and ultimately place successful orders. And actively participate in domestic and international exhibitions, for example, at this year’s 136th Canton Fair, we sent a luxurious lineup to participate in the exhibition. At this Canton Fair, we fully demonstrate our latest products to these potential customers and seize these opportunities that allow our end customers to experience our products for the first time.
Post time: Mar-17-2025