The key to the outbreak of China's photovoltaic + energy storage market
In recent years, China is one of the huge drivers of the rapid growth of the global solar energy market. It is not only the world's largest demand country, but also the world's largest photovoltaic supply chain settlement. The photovoltaic supply chain runs from upstream to downstream, and more than 80% of the global supply is from within China.
In 2022, the Chinese market has entered a stage of parity and no subsidies. In the 14th Five-Year Plan, China also aims to reach 20% of renewable energy consumption by the end of 2025, 25% by 2030, and 1200GW of wind + solar cumulative installed capacity.
This year, the Chinese market is expected to have more than 80GW of photovoltaic power plant projects installed, and maintain a high growth rate. It is expected that the demand for photovoltaic modules in a single year will reach more than 170GW in 2025. Looking at the composition of China's photovoltaic demand this year, it is expected that 43 GW of 83 GW of demand will come from distributed projects, and 25 GW of household photovoltaic projects will lead to a new high in distributed total, which is expected to account for 52% of China's installed capacity. Last year was the first time in China's history that the proportion of distributed projects exceeded that of centralized ones. Not only was the growth trajectory of distributed projects obvious to all, but it also set an important milestone for distributed projects.
Despite this, the demand for 40GW of ground power station projects expected to be added this year is also a record high. As the energy storage policy is mainly inclined towards centralized projects, it is expected that the energy storage industry will also flourish under the fermenting demand this year. Qinghai, Inner Mongolia, Ningxia and Xinjiang are the top five demand markets for ground-based photovoltaic projects. In addition, the first phase of the 100GW 400GW large-scale wind + solar project in the desert has also started construction, injecting more imagination into the centralized energy storage market.
In 2022, the strength of the light + storage policy will be improved
In line with the rapid growth of the photovoltaic market, China will begin to more actively promote the solar + storage policy in the pre-balance sheet market in 2021. Statistics up to August 2021 show that 20 provinces and cities in China have promulgated the solar + storage policy, requiring The newly built photovoltaic power station needs to support 5-20% of the energy storage, which can be divided into priority incentives and mandatory matching according to the strength of the policy. At that time, most provinces were mainly based on the soft policy of priority incentives, and the matching ratio was mostly 10%. With the passage of time to June 2022, in addition to more provinces also promulgating the light + storage policy, some provinces have also turned the preferential incentive policy into a mandatory package, and the proportion of the package has also increased, which fully demonstrates China's The determination to develop energy storage on the side of new energy power generation.