Photovoltaic "inversely": the lower the price of polysilicon, the greater the expansion of the power station

“We call for the establishment of a carbon trading market as soon as possible. We will promote energy-saving and emission-reduction intensity through the introduction of a performance mechanism, such as charging a carbon tax. The taxation of fossil fuels will eventually be subsidized by new energy sources.” This is the chairman of Solar Power Cao Renxian yesterday. For the reporter’s voice, for the global climate conference held in Durban next week, he was most concerned about the issue of emission reduction intensity and how emission reductions enter the market. In his notebook, the words "Committed to Clean Energy" are unforgettable.

Yesterday, Cao Renxian also explained to reporters that the company's products and polysilicon price "inversely" relationship, the lower the price of polysilicon, photovoltaic power plant expansion, the greater the demand for its products, so he speculated that next year company sales can achieve considerable Growth rate.

Sunshine Power's main photovoltaic inverter and wind energy converter, landing on the GEM is less than a month, yesterday ushered in the investigation team of nearly 50 institutional investors, nearly a hundred people, hot scenes make people can not and now Dim capital markets are linked. "How come so many people today, more than we generally do IPO." One of the reporters around the reporter lamented. Secretary Secret Xie Leping said with a smile, "Recently received a lot of institutional investors phone, very much think of the company research."

Sun Power's IPO prospectus disclosed that in 2008, 2009, and 2010, the company's PV inverter products had the largest market share in the domestic market for three consecutive years. In 2010, the company’s domestic market share was 42.8%, far ahead of other competitors. From 2008 to 2010, the company's operating income has a compound annual growth rate of more than 144%, and the compound annual growth rate of net profit exceeds 300%.

However, reports of “polysilicon plummeted” and “photovoltaic winter” have appeared in the media from time to time this year. In 2011, when the photovoltaic market suffered a cold spell, will the performance of solar power be affected? This is one of the issues most institutional investors want to understand.

"In fact, the inverter is not a photovoltaic product." Chairman Cao Renxian said with certainty, "It looks like it is a downstream product, in fact it is not. Polysilicon belongs to the photovoltaic industry chain, and the inverter is different, it is another system This system is a power plant and we joined the team in the final stage.You can see that none of the inverters uses polysilicon, monocrystalline silicon, or solar cells, and the inverter is parallel to them. One of the parts involved in the grid system, so the inverter should be the application of power electronics technology in the new energy industry.The sharp drop in the price of polysilicon products will not cause the sales of inverters to decline, on the contrary, if the price of polysilicon is lower, the inverter will change. The more applications there are, the greater the size of the plant. I deeply feel that this is an inverse relationship."

The inverter downstream industries mainly include renewable energy power generation companies, new energy investment companies, general contractors, and distributors. The market demand of downstream industries is strongly linked to local renewable energy policies. At present, the global renewable energy industry is developing rapidly, and the downstream industry has a strong market demand. Therefore, chairman Cao Renxian said that he expects the company will still occupy more than 40% of the domestic market share in the next year, and sales growth is still considerable.

“We are very optimistic about the comprehensive competitiveness of Sunshine Power.” Qiao Bin, Shanghai Yangge Investment Management Co., Ltd. told the reporter, “The company is currently the largest in China, and its domestic market share is significantly ahead of other competitors, and it ranks second and third. All of them are foreign manufacturers, and we very much want to understand the company and they are attracted."

The prospectus shows that Solar Power Technology is quite mature. The key indicators of large-scale photovoltaic inverter products, such as the efficiency index reached 98.5%, the maximum power tracking (MPPT) efficiency reached 99.9%, Cao Renxian said that it has almost the same with the world's largest inverter manufacturer SMA, almost negligible, The price of the company's products is obviously superior to foreign brands.

In addition to technology, Sunshine Power currently has 187 R&D personnel, accounting for 30.51% of the total number of employees. In October 2010, the Ministry of Human Resources and Social Security formally approved the company's establishment of a postdoctoral workstation for state-level companies, laying a good foundation for the company's high-end personnel exchanges, enhancing the company's theoretical and scientific research capabilities, and the reserve of future talents.

The reporter learned that XJ Electric also manufactures inverters, but the solar power source is even better. In response, Cao Renxian said: "Our industry specializes in photovoltaic industry, and our wind power inverter and wind power converter are our main business. We must not blindly pursue product quality. I also feel that products must be made faster and product technology must keep up with the times. Trends, in order to survive, we will further increase our wind energy converter business next year."

The National Energy Administration predicts that in 2011, the 12th Five-Year Plan for the development of renewable energy in China will be fully implemented. Although the growth rate of solar photovoltaic power generation market is relatively fast, the proportion of the entire power generation industry is still very low. As of the end of 2010, the cumulative installed capacity of China's power generation equipment was 962,200MW, of which the proportion of photovoltaic power generation was only 0.07%, and the photovoltaic power generation industry had a huge space for development. "We will strive to expand markets in North America, Japan and India next year. As for Europe, the market for the next year will definitely be better than this year," said Cao Renxian.