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Home - Solar Industry - Chinese PV leaders ask Beijing for new pricing mechanisms
Solar Industry

Chinese PV leaders ask Beijing for new pricing mechanisms

solarenergyBy solarenergySeptember 5, 2024No Comments2 Mins Read
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Chinese PV industry leaders are urging Beijing to implement requirements to help manufacturers operate more sustainably, as solar panel prices hit record lows amid China’s large-scale PV tenders.

September 5, 2024 Vincent Shaw

The China Photovoltaic Industry Association (CPIA) organized a symposium in Beijing on August 29 to discuss tender pricing mechanisms for large-scale PV projects.

The event attracted participation from several central government departments, including the Ministry of Industry and Information Technology (MIIT), the State-Owned Assets Supervision and Administration Commission (SASAC) and the National Energy Administration (NEA). Major state energy groups such as China Huadian Group, China Datang Corp., China Energy Group, State Power Investment Corp., China Huaneng Group, China Three Gorges Corp. and China National Nuclear Corp. were also present.

Leading solar companies also sent representatives, including Longi, Trina Solar, JA Solar, JinkoSolar, Canadian Solar, Sungrow and Tongwei.

According to the CPIA report, concerns have been raised about the impact of tender pricing mechanisms on the PV industry. More specifically, “price cuts” during tenders have contributed to a continued decline in the prices of photovoltaic products. The meeting aimed to address these issues and explore possible solutions.

CPIA Deputy Secretary General Liu Yiyang chaired the meeting. Speakers included Wang Shijiang of MIIT, Mo Xuanchao of SASAC, Yu Can of NEA, Cao Renxian of Sungrow and the president of CPIA, and Gao Jifan of Trina Solar.

The participants said that the current losses in the sector are harming the sustainable development of the PV sector. Excessively low prices undermine product quality and supply for downstream power plant owners.

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Their recommendations include optimizing the tender process with a two-step bidding system and using reasonable average prices as benchmarks. The CPIA plans to compile and publish price and cost indices to reflect current prices of PV products and assist in price adjustments.

Meeting participants also urged upstream PV manufacturers to tackle industry challenges by eliminating harmful competition and focusing on innovation, long-term commitment and cooperative success.

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