The deputy director of the National Development Reform Commission (NDRC) Energy Research Institute, Li Junfeng, recently announced that by the end of 2010, Chinese PV module production capacity will have reached 15 GW and production will have reached 7 GW, an increase of over 100% compared to the previous year. This acceleration is mainly due to a revitalization of China's economy and continued enthusiastic investment in the industry in 2010.
Moreover, the country’s solar cell module production capacity more than doubled compared to 2009, and is now around 12 GW. With estimations of the global PV module production capacity lying at around 20 GW, it can thus be said that China accounts for almost 3/4 of the world production.
Li Junfeng also reportedly said that China’s PV market has been overheated, caused by the extremely low price of power generation of 0.728 yuan per kilowatt hour. This price competition could not only destroy the domestic market but also harm the trade balance. As China’s world share in PV production will reach 60% and its share in production capacity 70% and possibly more, developed countries might introduce anti-dumping subsidy policies.
