In the increasing trend to generate electrical power from renewable sources, solar PV cells were one of the first technologies considered for the conversion of solar energy to usable electrical energy. PV technology initially had to contend with issues such as low conversion efficiency and high initial investment. However, power output has significantly improved through the development of a new technology involving mirrors/reflectors that focus sunlight falling over a huge area onto a small set of PV cells.

CPVs are also often equipped with trackers following the sun’s position, so that sun rays directly hit the panel of reflectors and are redirected to the PV cell arrays. As CPV reflectors usually require huge open areas, the technology often has to contend with the issue of water shortage for cooling the CPV cells. Air or the hybrid wet-dry cooling technology enables the use of CPV cells in deserts and isolated places. The CPV cells market is set for high growth with government initiatives in place for the generation of renewable power. The market also holds promise for new entrants as it currently has only a few players.

The report covers all the major types of CPV cells – i.e., of low, medium, and high concentration. The report also includes an in-depth analysis of solar PV submarkets, such as those for crystalline, thin film, and other PV cells. The report estimates and analyzes the markets for different cooling techniques, such as air and water cooling, which are vital for the functioning of CPVs. Issues like grid-parity have been also been explained and discussed in-depth.

The report includes an analysis of the global solar power market and the total energy scenario. It forecasts the size of each submarket; and also identifies the market trends and factors that drive or inhibit market growth. More than 45 company profiles are provided for a deeper insight into the competitive landscape. The market tables are categorized as per geographies, products, and applications. An in-depth geographic analysis is conducted for each of the sub-segment in the major regional markets of Americas, Europe, Asia and ROW.

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In recent years, China’s solar industry had witnessed a rapid development. China’s solar cell output only accounted for 8.1% of the total global output in 2005, but the ratio sharply increased to 17.1% in 2006. In 2007, China’s solar cell output was totaled at 1,088MWp, accounting for 27.2% of the total global output, becaming the largest solar cell manufacturing country in the world. However, China’s solar cell application market is still developing slowly. In 2007, only 20MWp or 1.84% of china’s total solar cell output was consumed locally, and the rest was exported.

Unlike the solar cell, the manufacturing of thin-film solar cell is not affected by the lack of raw materials such as polysilicons. Therefore, it attracted more attentions. China’s thin-film solar cell output increased sharply during the period of 2007 to 2008. More and more manufacturers in China had expanded their production capacity: Shenzhen Topray Solar, the a-Si (amorphous silicon) thin-film solar cell manufacturer had raised a total fund of CNY550 million from the stock market in 2008, for the constructional purpose of 25MW a-Si thin-film solar cell project and 15MW crystalline silicon solar cell project.

Moreover, On May27th 2008, Zongyi Group and Jusung Engineering from South Korea had agreed to co-establish a production line of 26MW thin-film solar cell, other solar cell manufacturers such as Sunvim Group, Fengfan, LDK Solar and Baoding Tianwei Group all performed actively in China’s thin-film solar cell market in the year of 2008.

The Government also pays great attention on solar power developments, and has released a series of favorable policies such as the subsidy of CHN4.00/kh for two solar power generating stations locate at Shanghai and Inner Mongolia respectively.

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The world’s solar cell output increased 40% yearly on average over the past decade. Promoted by the global PV market, China’s PV export value reached RMB150 billion in 2008, topping in the world. In addition, its PV output accounted for 30% of global total, and was the sum of Germany and Japan.
The global economic downturn has made PV industry stranded, and the ratio of output to demand was 2:1. In 1H 2009, the output value of world’s PV industry dropped nearly 40%, while the advantages such as low cost made China’s PV market share rise to 40%. In China, more than ten startups have successfully went public via PV market development, as well as many listed companies have entered the PV market, all of which had developed rapidly during several years before 2008, and their output capacity had been successively expanded.

Seen from the latest situation, some problems such as blind investment and overcapacity have occurred in the development course of China’s polysilicon industry.

Firstly, overcapacity in total output scale.
Lured by high profit in previous years, huge capital has flowed into polysilicon industry since 2006, which resulted in rapid expansion of polysilicon output capacity. According to the statistics, the polysilicon output capacity hit approximately 20,000 tons in China in 2008, and the output was 4,000 tons, while the production capacity under construction was over 80,000 tons, indicating evident overcapacity. Meanwhile, being an energy-intensive industry, the electricity charges of polysilicon accounts for 35%-40% in production cost. Currently, China’s PV industry has not started up by large extent, and 98% of solar cells made with China-made polysilicon are for export, which means indirectly energy export in large quantity.

Secondly, unreasonable distribution
The polysilicon projects should be established in the areas with rich energy and low-price electricity considering its electricity guzzling. However, a substantial part of new construction projects are built in East China and Central China, the areas with high electricity price and short of energy resources.

In Sep, 2009, China’s central government listed polysilicon as an overcapacity industry in order to guide its healthy development, avoid excessive competition and achieve energy-saving and emission reduction. It was explicitly proposed to strictly supervise industrial market access, strengthen environmental monitoring and project approvals, and implement the accountability system. In the meantime, it was planned to resolutely curb polysilicon overcapacity and redundant construction by rendering the economic and administrative means.

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