Exploiting Africa's Photovoltaic Resources

“Studies on African solar energy show that in some African countries, including Ethiopia, 325 days a year can receive strong sunshine, and the average solar day coverage can reach 6 kilowatts per hour per square meter.” Needless to say, Africa is developing photovoltaics. Resources have a unique advantage.

In 2012, China's photovoltaic industry faced difficulties and struggled. The traditional market was shrinking, profits were declining, and the shortage of funds kept the pace of corporate development. As an emerging photovoltaic market, Africa is not only the next investment hotspot expected by Chinese companies, but also gives hope to the photovoltaic companies in the quagmire. However, whether the African market can truly become a new growth point for China's photovoltaic companies will become the Chinese photovoltaic industry. It is still necessary to wait and see how the domestic companies can overcome their difficulties.

Recently held the "2012 PV Industry Leaders Summit" in Africa, more than 20 African officials in China and representatives of Chinese PV companies such as Suntech, Yingli, etc., have come together to discuss opportunities and challenges in investing in the African photovoltaic market. At this time, the Ministry of Commerce of the People's Republic of China is also formulating policies to promote Chinese PV companies to aid Africa and develop African markets. As the European and American markets close their doors, exploring the African market may be a new way for China's photovoltaic industry.

It was time to open up Africa

Africa has abundant solar energy resources, especially near the Sahara Desert, close to the equator, and full of sunshine throughout the year. It is recognized by the world as the region with the most sunshine on Earth. Ethiopian Ambassador to China Minister Cobd Biyani said: "The study of solar energy in Africa shows that in some African countries, including Ethiopia, 325 days a year can accept strong sunshine, and the average solar day coverage can be achieved. 6 kilowatts/hour per square meter." Needless to say, Africa's development of photovoltaic resources is uniquely advantageous.

In addition, African countries have a weak energy base and the economy is booming. The demand for electricity in countries is increasing day by day, which also provides a good opportunity for the development of renewable energy. With the social stability in Africa and the government’s emphasis on the development of renewable energy, the renewable energy industry has ushered in a rapid development. In recent years, African governments have issued plans and policies for the development of new energy sources such as solar energy. South Africa has taken the lead in installing solar water heaters for 128,000 residents and plans to establish a 5000 megawatt solar photovoltaic power station. Morocco has established a solar photovoltaic power station in the eastern city of Ujida, and plans to establish five solar photovoltaic power stations in five major cities such as Ouarzazate, with a total area of ​​10,000 hectares. According to Moroccan ambassador to China, Jafar Alger Hakim, according to government plans, by 2020, solar power capacity will reach 2,000 megawatts. Algeria has also launched a sustainable energy development plan. Currently, it has invested EUR 300 million to establish a solar panel factory together with Centrotherm of Germany. Power supplies such as Rwanda and Kenya are far from enough, and urgent demand has helped clean energy to make up for the lack of thermal power generation. According to statistics, by the end of 2011, China's PV products had reached US$35.821 billion in exports, of which only 0.82% was exported to the African continent, which was far lower than Europe's 56.94%. As an emerging market, Africa has a favorable condition for the development of photovoltaic industry. Zhu Bing, chief strategy officer of LDK, said: “Analyzing from all aspects, in the future, Africa should be a big cake with great potential.”

According to Zhu Zhenghong, the first secretary of the International Exchange and Cooperation Division of the Ministry of Commerce, “The Chinese government has promised to build 100 economic and energy projects for African countries. This includes photovoltaic industry projects. Helping Chinese companies to go global through foreign aid work has always been ours. An important part of the foreign aid work."

Layout Africa when cautious

The African market seems to be vast. Compared with the commercial environment and the transaction environment of mature markets in Europe and America, the emerging markets of Africa have their own characteristics. Relative to the established rules of the mature market and its activities within its scope, the Africa market has a low threshold, huge demand, and abundant human resources. There are no related companies in the region and anti-dumping problems will not be the unique advantages of Africa. However, new industries also face many challenges while developing in Africa.

First of all, this is an emerging market and it takes time to understand the market and local consumers. The chief executive of Africa Energy, Dal, said: “Begin with your own staff. Train them how to adapt to this market, how to adapt to the environment and emerging technologies. At the same time, consumers also need the same training and support. There is awareness of this, allowing them to identify with the renewable energy market."

Second, the stability and security of the African political situation are also risks that may be faced in non-investment projects. The PV market needs to rely heavily on government policies. The biggest feature of African countries is to rely on the assistance of external countries. This kind of aid investment actually has instability. “The support of external countries for Africa will change with the situation of the country’s political situation and economic conditions. This uncertainty is another concern for the companies that invest in them,” an industry source pointed out.

In addition, it should also consider how to solve the problem of power generation and internet access. Due to the weak power grid infrastructure and low population density in most countries in Africa, it is costly to build large-scale photovoltaic power plants and transport electricity over long distances. It is indispensable for companies to invest in photovoltaic power stations in Africa and fully consider the cost of building power grids.

Zhu Zhenghong told reporters: “One of the points that China is driving the photovoltaic companies to go abroad is to build and operate photovoltaic projects in Africa through the government’s foreign aid projects, which will have some impact. Whether or not it will lead our enterprises to truly go global depends on the company’s Operate itself."

"The Yingli had tried in Africa and the result was not satisfactory, because the safety issues, economic problems and policies there were unclear," said an employee of Yingli Group.

Win by quality "training long-distance running"

According to Xie Feng, a senior analyst at IMS Research, in the next three to five years, Africa’s PV installed capacity will reach 1.4 GW. Compared with large markets such as Germany, Italy, the United States, and China, although the African market has great potential in the long-term, the recent market space is not large. China's PV companies want to invest in Africa to reverse their difficulties, get rid of the crisis, and even re-enactment. Situation, a few difficulties.

According to Li Junfeng, director of the National Center for Coping with Climate Change Research and International Cooperation, “The discussion and development of the African market does not mean that we can use Africa to save the market.” Chen Huiqing, deputy director of the legal services department of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, told the reporter: “China The photovoltaic industry is heavily dependent on foreign countries in terms of core technology and equipment, and its technology, raw materials, and application markets are out of the ordinary, and it has not formed its own core competitiveness.There has been a certain gap with foreign countries in the research and development of solar energy materials and new high-efficiency solar cells. She reminded that relying solely on low-cost extensional expansion, over-reliance on foreign markets has caused the entire industry to become passive. To achieve healthy and healthy development, the photovoltaic industry must rely on its own efforts and quality is the key to success. Industry experts said that in the future only rely on technological innovation to occupy a new market. “The current predicament will prompt the entire photovoltaic manufacturing industry to fully enter the integration period, and the survival of the fittest will inevitably be eliminated. Whether it is deepening the emerging markets or returning to the traditional markets in Europe and the United States, continuous technological innovation will be the future of companies participating in the global market competition. Two ways."