Nearly 70% of the future power supply comes from photovoltaics, and the annual market scale exceeds 1000GW

- Nov 08, 2018-

In the current world energy transformation, photovoltaic power generation has undoubtedly become the most promising area. In the global photovoltaic field,China's photovoltaic industry is a well-deserved leader. At present, it has formed a pattern of “future energy to see photovoltaic, world photovoltaic to seeChina”.


After more than ten years of rapid development,China's PV industry is in an absolute leading position in the world, whether it is technology, capacity, innovation or reputation. All of this is attributed to the diligent Chinese PV companies and entrepreneurs. Similarly, they also lead the trend and sound of the world's photovoltaics.


Recently, Mr. Li Zhenguo, founder and CEO of Longji Group, delivered a speech at the relevant meeting. In his speech, he said that by 2050, 100% of the world's electricity will be supplied by clean energy, and photovoltaic power generation accounts for 68%. In order to achieve this goal, PV needs to be up to 1000 GW per year. The photovoltaic market has just opened.


Mr. Li Zhenguo's speech was vivid and forward-looking. Huaxia Energy Network specially edited and edited the speech (the content was deleted, the title is added by the editor) as follows:


After graduating from the university's semiconductor materials major, Li Zhenguo's first job was to produce single crystals, which opened his monocrystalline silicon career. In 2000, he and several university students set up Longji. The company's name was taken from the name of his alma mater, Jiang Longji. For more than a decade, Longji has been based on single crystals, witnessing the development of the photovoltaic industry from 100MW in 2000 to 100GW in 2017.


Before 2004, Longji was a small-scale semiconductor monocrystalline and wafer company. In 2004, with the German government's "On-grid Electricity Price Law", it saw the unlimited prospects and possibilities of the photovoltaic industry, and transferred the core of its business to solar energy. In seven years, Longji became the world's largest solar monocrystalline silicon wafer. the company. In order to better transfer the value of single crystal to the end customers, at the end of 2014, Longji began the manufacture of batteries and components by acquiring a component company inChina. Today, three and a half years later, Longji has become the world's largest manufacturer of vertically integrated monocrystalline components. The company's production capacity of monocrystalline silicon rods and wafers will increase from 15GW in 2017 to 28GW in 2018 and 45GW in 2020. Component capacity has expanded from 6GW in 2017 to 12GW in 2018.


For more than three years, Longji has successfully changed the structure of component installation in the Chinese market. Before 2015, less than 5% of monocrystalline modules were installed inChina. In 2015, the first year that Longji began to make components, the installation rate of Chinese monocrystalline modules rose to 15%. In 2016, this number continues to climb. Up to 27%. In 2017, the proportion of single crystals continued to grow to 36% inChina. In the first half of 2018, third-party figures show thatChina's single crystal installation has exceeded 50%.


Longji is a technology company: annual R&D investment is as high as 5-7% of annual revenue, while the industry's universal standard is less than 1%. In 2017, the company's R&D investment was about 175 million US dollars, making Longji the most invested company in the industry. The high investment in research and development also received high returns: In 2017, Longji single crystal PERC battery efficiency broke the world record three times in a row. In 2018, the world's largest high-efficiency double-sided battery module production capacity was built.


Longji Financial Health: The company's component products need to provide customers with 25-30 years of power generation warranty. Longji firmly believes that the best product warranty is that the company's life expectancy is greater than the product's life. Therefore, for many years, Longji’s debt ratio has remained at around 50%. In the past few years, Longji has been ranked as the second place in the financial health of global PV companies by Bloomberg New Energy Finance, and the financial health of Chinese companies is the first. Although financial controls are cautious and even conservative, in the past three years, Longji has maintained a growth of more than 60% in terms of shipments, annual revenue and annual net profit.


Previously, Longji's production used thermal power as an energy supply. Since 2015, Longji has used the transfer of industrial bases. In Yunnan andMalaysia, almost 100% use hydropower to produce all clean energy products with clean energy. Today, Longji pursues “Solar For Solar” further – using photovoltaics to manufacture photovoltaics. Longji is looking for such a suitable area for the next phase of expansion, and realize the dream of “Solar for Solar” as soon as possible.


A report from Finnish and German research institutes shows that by 2050, 100% of the world's electricity will be supplied by clean energy, of which photovoltaics account for as much as 68%. In order to achieve this goal, PV needs to be up to 1000 GW per year. Since the 31st year, companies need to replace the components installed in the first year, which makes photovoltaics an industry that continues to grow by 1000GW per year.


In addition, this 1000 GW scale estimate is based only on population growth and the basic needs of human beings for a better life, but when PV and storage are cheap enough, PV can reach greater potential. For example, large-scale seawater desalination can be carried out through photovoltaic and energy storage, deserts can be changed into oases, and more carbon dioxide can be captured through oases to make the world environment better. In this sense, in the future, the prospect of photovoltaics will far exceed the market size of 1000GW per year.