Chinese PV Industry Brief: Tongwei and Jinko team up, as NEA sets new 2030 targets

On Feb 10^th, just two days before China's Lunar New Year, a consultation paper released by the National Energy Administration (NEA) said China will increase the share of renewable energy power consumption to 40% by end of 2030. Non-hydro renewables, primarily wind and solar, are set to represent 25.9% of the overall share.

The target proposal, which includes objectives delegated to local governments at province, municipality, and autonomous region level, is being sent to the NEA’s provincial branches, as well as major Chinese state-owned energy companies for “comments and suggestions” which need to be received by Feb 26^th.

NEA said this target proposal is set to “ensure achievement of the policy target of non-fossil energy accounting for 25% of primary energy consumption by 2030” set by Chinese President Xi Jinping in 2020. Once the targets are finalized, NEA will formally implement the objectives and take the responsibility for supervision of their implementation.

Tongwei teams up with Jinko

Silicon cell manufacturer Tongwei has signed an agreement for a strategic cooperation partnership with JinkoSolar, to focus on better supply chain cooperation.

Tongwei will invest and take 30% shares in a joint venture with Jinko for wafer manufacturing with an annual capacity of 15 GW. Meanwhile, Jinko will also invest and hold 35% shares in a new polysilicon manufacturing base with an annual output of 45,000 metric tons (MT).

Additionally, Jinko committed to supply an additional 6.5 GW of silicon wafers to Tongwei from 2021 to 2023, based on a previously announced silicon purchasing order made from Tongwei. Last November, the two companies signed a long-term purchasing order that will see Jinko buy a total of 93,000 MT of polysilicon from Tongwei over the same period.

China Huadian opens year's first tender for centralized purchasing

One of the largest Chinese state-owned energy power groups, China Huadian Group released its first tender for centralized purchasing of solar PV modules and inverters for 2021. The total volume is 7 GW for each product category.

Modules with power ratings above 530 Wp are set to account for 80% of the total, or 5.6 GW. String inverters rated at 175 kW or above will comprise 85% of the total, or 6 GW. The first 500 MW of both modules and inverters is required to start delivery in the second quarter, and the rest should be shipped in the second half of the year. The online tender will close on March 2^nd.

Comtec's ‘New energy industry fund'

Project developer Comtec Solar on Monday announced the signing of a five-year agreement with a local government entity in Changzhou to establish a “new energy industry fund” to construct, acquire and sell solar projects. Comtec, which announced its intention to switch from solar manufacturing to project development in September 2019, will work with the Jiangsu Changzhou Tianning Economic Development Zone Management Committee to set up the fund, with the latter to focus on “financial services support.” The partners also aim to establish a platform for the provision of PV industry services including training, finance, and construction, with an initial focus on small-scale distributed PV.

Irico to supply $15.5 million worth of PV materials

Irico New Energy, a subsidiary of state-owned electronics business Irico Group on Saturday signed a master supply agreement with its parent to sell up to RMB100 million (US$15.5 million) of photovoltaic products, such as coated and tempered glass. The supply deal started on Monday and will run for the rest of the year. Irico Group, which has a 47.52% controlling stake in Irico New Energy, is owned by state entity China Electronics Corp.

Xinyi purchases 520 MW of projects

Shareholders in solar developer Xinyi Energy on Thursday voted through the RMB512 million purchase of 520 MW of Chinese PV generation capacity from the company’s parent, Hong Kong-listed photovoltaic glassmaker Xinyi Solar. The vote came after Xinyi Solar’s takeover approach for rival China Glass had lapsed a day earlier. Under Hong Kong takeover rules, Xinyi Solar is forbidden from making another approach for 12 months.