Research On Operating Risks&Counter-measures Of China PV Power Company

Since2003, Photovotaic(PV) power subsidy policies have been launched in USA, Japan and European countries, global PV power industry continually developing and growing, PV power application market have ushered in the great development, and PV power capacity rising consistently. The demand for Polysilicon and PV modules, high profits have greatly stimulated the Chinese enterprises, for which China’s PV industry has been rapidly developing. Just a few years later, many America’s listed enterprises sprang up in China, such as Suntech, Yingli, Trina and so on, modules production capacity reaching40GW; Polysilicon enterprises started and expanded blindly without mastering core technology. Capacity surplus took place in China’s PV manufacturing industry. However, the generation cost remains high so that PV power enterprises as the application part of PV industry haven’t started. This phenomenon caused the result of "two out", controlled by others. Based on this background, the paper analyzes the business risks faced by Chinese PV companies, propose and analyze responses.The analysis will be presented from the perspective of contradictions between supply and demand, based on the formation mechanism of PV power industry’s operational risks. On the supply side includes:profit attract at the industry’s initial stage, central government’s guide and motivation, local government’s strong push&support, lackness of effective constraits to development planning, processing and manufacturing level at the low-end of chain, the low threshold and criteria of entering profession. The market constraits contain:international market’s growth&fluctuations, domestic market’s cultivation immature, narrow spaces in domestic market.The PV industry’s risks are:political risks, grid’s security risks, roof-mounted pv power’s operational risks and PV power plant’s design, construction and operational risks.Analysis concluded that:it is rather important to do comprehensive planning in PV power to response to business risks effectively; simultaneously it is crucial to deal with business risks out of dilemma to keep sustainable feed-in tariff support; meanwhile, it is necessray for the power grid to do grid construction and reform actively responding to national call. At last, the paper proposed quite pragmatic suggestions of how to choosing good PV power equipments, according to the author’s rich working experience and accumulation.