In the first half of this year, the photovoltaic industry in China has demonstrated vigorous growth, with all metrics rapidly ascending.

What does the future hold for the photovoltaic industry? Which critical technologies in industrialization urgently need to get ahead? In the context of achieving carbon peak and carbon neutrality goals, what potential opportunities and challenges lie ahead for various industries and companies in the new energy sector? 

Recently, Jiang Hua, Deputy Secretary-General of the China Photovoltaic Industry Association (CPIA) and Director of the New Energy Research Department at CCID’s Integrated Circuit Research Institute, Zhu Yuanhao, Honorary President of the Shanghai New Energy Industry Association (SNEIA), and Larry Lei, Founder and President of Dual Helios Semiconductor Equipment Company Inc., were guests on the “People’s Reception Room” program. They engaged in thorough discussions on pressing topics, including the development of the energy electronics industry. 

 

Insights from the Experts 

The photovoltaic industry’s sustained expansion heralds new opportunities. Accelerating the construction of large-scale photovoltaic bases stands as a pivotal strategy in China’s shift toward clean-energy country. Larry Lei highlights several directions for the new paradigm of energy production: firstly, the photovoltaic and wind power sectors are achieving significant breakthroughs in technological enhancement, efficiency improvement, and cost reduction, with ample prospects for future growth; secondly, ongoing investment in energy storage technology, advancements in battery technology, and research in alternative storage solutions are crucial for energy storage achievements; thirdly, leveraging intelligent control systems to experiment with various generation methods facilitates equitable distribution and elevates energy efficiency; fourthly, the internet’s evolution is poised to influence energy trends, foster shared capabilities and enable the communal use of energy resources across diverse locales; fifthly, environmental objectives merit attention, as increasing the production of green energy can mitigate carbon footprints and pollution. 

Semiconductor technology drives new breakthroughs in the photovoltaic industry. As a high-tech industry with a leading edge in China, semiconductor technology plays a pivotal role in spearheading the next wave of technological and industrial revolutions. It is also crucial for enhancing quality, reducing costs, and boosting efficiency within the photovoltaic sector. Jiang Hua points out that the semiconductor industry supports the photovoltaic industry in three primary ways: firstly, photovoltaic products rely on semiconductor chips and devices; secondly, the semiconductor sector fosters the photovoltaic industry’s progression towards intelligent development; thirdly, semiconductor technology endows photovoltaic power generation with flexibility and adjustability, playing an essential role in the development of smart grids. 

Strengthening policy coordination to boost the high-quality development of the energy electronics industry. Advancing the high-quality growth of the energy electronics industry requires strengthened policy coordination and support from an enabling environment. Zhu Yuanhao argues that establishing a smart grid, or an energy internet, is vital for advancing the power sector. This initiative would facilitate the optimal distribution of various electrical resources, thereby enhancing the efficient integration and utilization of these resources. Nationally, creating an energy internet could leverage the differences in sunlight hours between China’s western and eastern regions and maximize the complementary use of renewable sources such as thermal and hydroelectric power. 

 

 

 

Interview transcript

Xu Weina, a reporter of People’s Daily Online: 

Hello, everyone, and welcome to the People’s Reception Room. I’m Xu Weina. 

Today, we are presenting a special episode titled “Exploring Paths to High-Quality Development in the Energy Electronics Industry”, aimed at contributing ideas towards the high-quality growth of this sector. It’s my great honor to introduce our three distinguished guests in today’s discussion: Jiang Hua, Deputy Secretary-General of the China Photovoltaic Industry Association (CPIA), Zhu Yuanhao, President of the Shanghai New Energy Industry Association (SNEIA), and Larry Lei, Founder and President of Dual Helios Semiconductor Equipment Company Inc.. Welcome to all three of you. 

Today our discussion centers on the development of the new energy and photovoltaic electronics industry. To kick things off, I’d like to direct our first question to Mr. Jiang: could you share with us the current state of the photovoltaic industry and its key characteristics? 

Jiang Hua, Deputy Secretary-General of the CPIA

The photovoltaic industry has evolved to become one of the few sectors in China that not only competes internationally but also holds a leading global position. Our international edge is evident in several key areas: Firstly, our production scale is unmatched globally. The photovoltaic industry’s core chain of products, including polysilicon, silicon wafers, cells, and modules, have maintained the top global production ranking for many years, with our share of global output consistently exceeding 80%. 

Secondly, we lead the world in technological prowess. This leadership is not limited to the technology used in industrial production, where our photovoltaic cells’ mass-production conversion efficiency is world-class. Additionally, our laboratory R&D capabilities have swiftly advanced, placing us at the forefront. For instance, the conversion efficiency record of 26.81% for monocrystalline silicon cells, recently achieved by one of our companies, broke the previous world record held by a Japanese firm for five years. 

Thirdly, our market size is one of the largest globally. China’s new and cumulative photovoltaic installations have led the world for many years, capturing a significant share of the global PV market. 

Lastly, and equally important, is the comprehensive support structure of our photovoltaic industry, which is globally unparalleled. Beyond the polysilicon, silicon wafers, cells, and modules mentioned, we have mature support systems for auxiliary materials, such as pastes, high-temperature glasses, adhesive films, and backplates. Moreover, our production and manufacturing equipment largely rely on domestic suppliers. Furthermore, a robust ecosystem has been formed around technical R&D personnel, academic and research institutions, and standards, which is unique to our industry. This ecosystem, unmatched by other countries, underpins the four pillars of leadership in our photovoltaic industry development. 

Thanks to Mr. Jiang for his insightful industry analysis. We observe that the photovoltaic industry, as a beacon for new energy development, is welcoming unprecedented opportunities. Mr. Zhu, how do you perceive the current trends and distinct features within China’s burgeoning new energy sector? 

Zhu Yuanhao, President of the SNEIA

 
A significant trend in the current landscape is the continuous increase in photovoltaic installation capacity. By the end of last year, this capacity had soared to 390 million kilowatts. Fast forward to June of this year, and the figure impressively climbed to 470 million kilowatts. This milestone surpasses hydropower’s 413 million kilowatts, ranking second only to thermal power in installation capacity. Among the five known power generation industries (wind, solar, hydro, thermal, and nuclear), photovoltaic capacity has achieved second place, accounting for 17%. 
The momentum this year is undeniably robust. Statistical data from January to August reveal that an additional 113 million kilowatts were installed, pushing the cumulative capacity to a monumental 500 million kilowatts by the end of August. When considering the inclusion of wind, hydro, and nuclear power, the share of non-fossil energy installations is nearly half, marking a commendable achievement. 

Another critical yet often overlooked metric is the electricity generated by photovoltaic systems. Last year’s statistics indicated a generation of 430 billion kilowatt-hours, substantially lower than the 5.89 trillion kilowatt-hours produced by thermal power. This disparity highlights both an opportunity and a challenge for the photovoltaic sector. There’s a pressing need to ramp up the installation of photovoltaic systems, thus creating significant opportunities for the market. Achieving these ambitious goals necessitates continuous technological breakthroughs and industrial advancements. 

Thank you, Mr. Zhu, for your industry analysis. Mr. Lei, as a business representative, what do you think of the development status quo of energy electronics industry? 

Larry Lei, Founder and President of Dual Helios Semiconductor Equipment Company Inc.. 

The development of energy currently follows several key directions. Firstly, the advancement of energy technology stands as the most fundamental aspect. This domain has seen significant transformations in sectors like photovoltaic and wind energy over the past two decades. Driven by the “carbon peaking and carbon neutrality” policy, substantial investments have been channeled into the photovoltaic and wind power industries. These investments have fostered numerous technological enhancements, efficiency gains, and cost reductions— a level of cost optimization previously deemed challenging is now visible. Additionally, the coming 5 to 10 years promise substantial potential for further expansion in photovoltaic and wind power assembly. 
The second direction focuses on energy storage. Nowadays, storage has emerged as a crucial component for achieving energy intelligence, serving as a key buffer technology. Without effective storage solutions, balancing other forms of green energy becomes a challenge. This area is witnessing advancements in battery technology and diverse storage methods, enhancing the effectiveness of energy storage. Continuous investment in this sector is diversifying the available approaches significantly. 

Thirdly, intelligent energy control is pivotal. The evolving power grid necessitates integrating various energy sources. This integration demands testing different generation methods and developing systems to coalesce these energies seamlessly, ensuring even distribution and adaptability to varying demands. 

Lastly, the evolution of the internet plays a crucial role. Many power stations operate independently, each with its unique grid. However, the internet’s growth paves the way for enhanced sharing capabilities, allowing different regions to share energy resources effectively. 

Pursuing these strategies, we aim to realize a holistic approach to energy development. Moreover, in the realm of environmental protection, we’re committed to harnessing more green energy to diminish carbon emissions and mitigate environmental pollution. 

Thank you, Mr. Lei, for your insights. Through the contributions of our three guests, we’ve gained a macro-level understanding of developments within related industries. It’s fascinating to note that photovoltaics essentially involves converting solar energy using semiconductor materials. Mr. Jiang, could you elaborate on the critical role the semiconductor industry plays in the photovoltaic sector and highlight the forthcoming opportunities and challenges? 

Jiang Hua, Deputy Secretary-General of the CPIA

I believe the semiconductor industry significantly empowers the photovoltaic sector in three primary ways. Firstly, key components in our photovoltaic products, such as photovoltaic inverters, require semiconductor chips and devices, including crucial power devices like IGBTs and control chips, all of which are semiconductor-based. 

Secondly, the semiconductor industry plays a pivotal role in fostering the intelligent evolution of the photovoltaic industry. This is evident in the Action Plan for Innovative Development of Intelligent Photovoltaic Industry, jointly launched by the Ministry of Industry and Information Technology and other ministries. The push towards smart development in photovoltaics is categorized into three areas: the creation of intelligent photovoltaic products, the advancement of intelligent manufacturing, and the enhancement of intelligent applications in photovoltaics. Each of these areas depends on the semiconductor industry’s support for their intelligent upgrade. 

The third aspect focuses on the intelligence at the source, leveraging semiconductor technology to achieve flexibility and adjustability in photovoltaic power generation. Moreover, as we construct a comprehensive, emerging power system downstream, it’s not only about making the source intelligence but also about developing smart grids. The development of smart grids necessitates the support of semiconductor devices, including sensors, photoelectric devices, analog chips, and artificial intelligence chips, all of which significantly demand integrated circuits and semiconductor devices. 

Thank you, Mr. Jiang, for shedding light on the trends towards photovoltaic industry integration and smart technology. President Zhu, in the synergy of the new energy sector and electronic information technology, which advanced technologies do you see as promising? Could you provide us with some concrete examples? 

Zhu Yuanhao, President of the SNEIA

Photovoltaics is fundamentally an electronic product. Traditionally, power generation involved converting mechanical energy into electrical energy, such as using the rotation of a steam turbine to cut through magnetic flux lines to generate electricity. However, photovoltaic power introduces a revolutionary concept distinct from traditional generation methods. It relies on the principles of electronics to produce electricity, where light creates potential through the photovoltaic effect. These electromagnetic plates, when connected in series and parallel, generate a larger current. Thus, from its inception, the photovoltaic industry has heavily depended on the talent and equipment of the semiconductor sector for its development. 

The inclusion of semiconductor industry talents in the PV sector has significantly propelled the growth and development of the PV industry. 

Regarding technological pathways, the technologies initially adopted by various companies were rather simplistic. For example, in the early days of our photovoltaic venture, we focused on monocrystalline silicon, which was then followed by a shift to polycrystalline silicon. The industry saw a back-and-forth between these two before moving into PERC cells. In essence, the major Chinese enterprises operated with similar technologies, where the production lines across these companies shared a common principle. 

The scenario has evolved today. Although PERC cells were previously anticipated to lead the way, followed by optimism towards HJT cells, the actual pace of adoption for HJT cells did not meet expectations. As a result, from last year, many firms have redirected their attention to TOPCon technology. At this juncture, a significant number of companies are channeling investments into establishing TOPCon production lines. Amidst navigating through a series of challenges and resolving various issues during this development phase, some have also started prioritizing back-contact (BC) cells, positioning them as a strategic focus for the forthcoming years. 

Moreover, perovskite technology is under investigation as a relatively fresh and innovative approach. China is at the forefront of this research, although its application remains sparse. This has caught the interest of European and American companies, which are trailing behind China in the crystalline silicon battery sector, hoping to make significant strides with perovskite. Currently, the market is distinguished by four main technologies, reflecting a departure from previous patterns and introducing a novel phase of diversification. 

While I view all major industries positively, given a choice, I am particularly inclined towards HJT cells for their promising prospects. 

Thank you, Mr. Zhu, for your insightful share and the vivid examples provided. Now, we would also like to seek insights from Mr. Lei. In our journey towards achieving our technological objectives, how has Dual Helios contributed to fostering the development of a higher-quality electronics industry? 

 

Larry Lei, Founder and President of Dual Helios Semiconductor Equipment Company Inc.. 

Our journey has seen us navigate through various technological paths, ultimately leading our company to adopt the HJT technology. This decision was driven by several critical factors, with paramount importance placed on its low energy consumption and low carbon emission characteristics. HJT technology employs cryogenic processes like CVD and PVD for cell production, aligning with the vision of a cleaner, new energy source. Furthermore, HJT cells offer significant advantages over other technologies, chiefly their simplicity in manufacturing—requiring only four processes to produce cells—making it a reliable method to achieve optimal efficiency. 

Additionally, HJT technology introduces bifacial cells, distinct from their counterparts, capable of generating electricity on both sides. While the application scope for bifacial power generation may not be extensive, it finds practical use in numerous rooftop power generation scenarios. Particularly in snowy regions, bifacial generation addresses the challenge of snow and water accumulation blocking sunlight to solar panels. The rear side’s electricity generation can melt the snow on the front, a feature that has garnered preference in many European, American, and Japanese countries, as well as in the northern hemisphere. Moreover, on a module, HJT technology enhances power output by 25 watts compared to other technologies. Although this increase may appear modest at the module level, it enables a power plant to utilize space more efficiently, thus achieving higher power generation. Comparatively, the cost of producing each watt of power with HJT technology has reached parity with PERC technology. Over a decade of development and refinement, HJT has emerged as a highly viable technology. We are confident in the significant potential for future advancements within this field. Hence, we have selected this technology as one of the most promising within the industry. 

Thank you for sharing insights on the development of the electronic photovoltaic industry and the current status of the energy electronics industry from both an industry and technical practice perspective. The progress of all sectors fundamentally relies on the backing of related industry associations. I have a set of data indicating that, as per the China Photovoltaic Electronic Industry Association, the number of member companies has reached close to 500. Mr. Jiang, could you enlighten us on future initiatives aimed at enhancing industry self-regulation standards or bolstering technological integration? Additionally, what innovative approaches are we exploring in terms of collaboration and communication? 

 

Jiang Hua, Deputy Secretary-General of the CPIA

Addressing the host’s earlier mention of our association having over 500 member companies, it’s noteworthy that our membership has, in fact, surpassed 750, nearing 800, and is continuously being dynamically adjusted. Membership is rigorously vetted to ensure adherence to our association’s criteria, with non-compliant members being phased out. This swift increase in membership not only signifies the Photovoltaic Industry Association’s strong influence over enterprises but also highlights the significant work we’ve undertaken in several areas. 

Primarily, we’ve dedicated extensive efforts towards industry research, utilizing our comprehensive grasp of industry data to regularly publish monitoring results on a weekly, quarterly, semi-annual, and annual basis. These publications greatly assist in guiding policy development and operational strategies for companies. Moreover, our yearly achievements, including the annual report, industry development roadmap, and industry maps, have become vital reference materials within the sector, playing a crucial role in informing business decisions. This aspect underlines our commitment to industry research. 

Furthermore, we’ve been instrumental in facilitating industry exchanges. Our association has established signature conferences, such as the bi-annual review and outlook meetings and the annual general meeting, where we disseminate industry data and foster technical discussions and sharing. Additionally, we’ve created platforms for businesses to engage and communicate, significantly advancing inter-company collaboration and cooperation. 

Additionally, last year we innovatively initiated a campaign to promote innovative and creative products and technologies within the industry. We focused on selecting technologies at the forefront, those addressing common challenges across the sector and significantly contributing to cost reduction and efficiency enhancement in the photovoltaic industry. Through a process involving applications from companies and evaluations by experts, we identified over 20 technologies for widespread promotion across the industry. This initiative plays a crucial role in elevating the overall standard and fostering advancements within the sector. 

Furthermore, our association has been dedicated to developing group standards. It’s widely acknowledged that beyond national and industry-specific standards, group standards constitute a vital complement to our country’s standardization framework. Group standards, by their nature, are more market-driven and demand higher levels of institutional quality. Importantly, they are developed over shorter cycles, allowing them to more accurately reflect the evolving needs of the rapidly advancing photovoltaic industry. Our work in establishing group standards has been significant. To date, we have released 63 group standards, greatly enhancing the domestic photovoltaic industry’s overall standard system. 

It’s also worth noting that globally, including in foreign contexts like the IEC and ISO, group standards play a pivotal role. By developing our own group standards, we aim to align and integrate seamlessly with international standard systems. This constitutes our third strategic area of focus. 

Fourthly, we are committed to promoting industry self-regulation. A case in point is the household photovoltaic sector, which experienced a mixed quality of development in its early stage. Recognizing this, the Photovoltaic Industry Association established a dedicated committee for household photovoltaics. Driven by this committee’s efforts, we undertook several initiatives. Firstly, we developed ten standards for household PV, covering various stages from design and construction to downstream maintenance, thus enhancing the sector’s standard framework. Secondly, we introduced a self-regulation convention for household PV practitioners, setting behavioral guidelines. Lastly, in collaboration with industry experts and enterprises, we developed templates for household PV installation and sales contracts, significantly standardizing contract practices across the industry. 

Through these initiatives, it’s fair to say that the standardization of the domestic shared photovoltaic market has significantly improved. We have transformed from a disordered development phase to a state where high-quality brands dominate a significant share of the household market. This serves as a compelling demonstration of our commitment to promoting industry self-regulation. 

Thank you for your sharing. You’ve discussed the forthcoming plans and supportive directions from the standpoint of industry associations. Mr. Zhu, as today’s discussion centers on the development of the energy electronics industry, could you offer any recommendations from the perspectives of both enterprises and the broader industry? 

 

Zhu Yuanhao, President of the SNEIA

From the current perspective, there has been a change in the energy structure. For example, in 2000, our country's total installed capacity was 300 million kilowatts, with thermal power occupying the majority, accounting for 77% of the total, and thermal power was the main energy source. So, its allocation and operation were relatively simple. Now, we have wind power, photovoltaics, hydropower, thermal power, and nuclear power all integrated and applied together. Therefore, the development of our electricity now requires the establishment of an energy internet, which is a smart grid. The construction of such a grid is actually a progressive process. For example, on a small scale, a household or a company can establish a microgrid to manage electricity within the household or the company. On a slightly larger scale, in industrial parks, you can establish a relatively interconnected and interactive energy system with energy storage and applications. Moreover, electricity generated by Factory A within the industrial park can be used on the production line of Factory B. Currently, selling electricity across walls is still challenging and difficult to achieve. If we establish a smart grid in our industrial park, it's a step forward. 

From our country's perspective, establishing an energy internet, the electricity from the west and the east can complement each other due to differences in sunlight exposure times. When photovoltaics are strong, hydropower can reduce its output slightly. When there is no photovoltaic power, thermal power can increase its output. With several types of energy, including energy storage, once a system is established, we can utilize energy more efficiently, or we can use energy storage as an alternative or supplementary means to balance it. If energy scheduling is done well, energy storage capacity can also be saved accordingly. This is establishing an internet on a national scale. More broadly, along the "Belt and Road" or in more extensive neighboring regions, we can utilize the time difference of photovoltaics and the price differences of various energies to balance them, making various energy uses globally consistent. In this way, an energy internet can be established. 

From the perspective of enterprises, the current focus is still on improving the conversion efficiency of photovoltaics. Only when the conversion efficiency of photovoltaics is improved can the price per watt of our photovoltaic electricity be cheaper. From the current perspective, looking at the predictable technology of photovoltaics, it has several characteristics. In the future, it can become the cheapest electricity in terms of cost. It is also the equipment with the easiest operation and maintenance methods. So, there are several advantages here. If conversion efficiency is further improved, thus leading to further price reductions, then our electricity prices will be more competitive when serving industry and agriculture. In this process, as mentioned earlier, photovoltaics itself is a semiconductor product. Of course, its technical content is slightly lower compared to chips. We can apply more semiconductor technology to the photovoltaic industry, attracting more talents from the semiconductor industry to engage in the photovoltaic industry, and utilize more innovative thinking to manufacture various advanced equipment to serve our photovoltaic equipment and production lines. The prospects for the application of photovoltaics will be better. 

Thank you, President Zhu, for you sharing. Mr. Lei, as a representative of the business community, could you also talk to us about the process of high-quality development of the energy electronics industry, your future expectations, or any suggestions you may have? 

 

Larry Lei, Founder and President of Dual Helios Semiconductor Equipment Company Inc.. 

As President Zhu just mentioned, the Internet is a very important development, but how to achieve it requires integrating different talents into the energy industry. The energy industry is seen by many as a relatively traditional industry and may need to attract young people to participate. Many young people who work on the Internet are focused on gaming and other areas, but the same skills can also be developed in energy control. 

In terms of control, we may need to consider some methods that we haven't thought of before. For example, does it need such a large scale of thermal energy to generate electricity? Many years ago, we thought that internal combustion engines were only used to drive vehicles, but in today's market, internal combustion engines have many uses, such as range extenders for electric vehicles. In the future integration of energy, we may need to develop some smaller engines to complement these green energy solutions and implement intelligent designs. 

In fact, there is a lot of room for development in the future. We should not only continuously standardize every future aspect with traditional methods but also think about how to innovate, how to find some new solutions from a very traditional industry, attract younger people into this industry, and create more effective and innovative solutions. 

Just as I mentioned the work done by our association, I think two other aspects should also be mentioned. One is about promoting international cooperation. The internationalization of the photovoltaic industry is very high now. Not only do more than 50% of our photovoltaic products need to be exported, but we are also accelerating the construction of overseas bases. Therefore, understanding overseas markets and policies is very important for photovoltaic enterprises. In this regard, we have also done a lot of work. We have organized delegations of member companies to visit abroad, specifically visiting countries aspiring to establish photovoltaic capacity and countries with very large local market spaces. In this way, it assists our photovoltaic enterprises in expanding their markets and finding better locations for capacity deployment. In addition, we have established very close contacts and communication channels with overseas industry organizations in the photovoltaic field, as well as government agencies and some consulting firms. This is very helpful for assisting our companies in understanding overseas markets and policies. This is the first point. 

Secondly, the most important thing is the role of policy dissemination and implementation. Although subsidies for our photovoltaic industry have been canceled, policies still play a significant role in the development of the industry and the market. On the one hand, we promote the dissemination of policies to the industry, allowing our member units and industry enterprises to better understand the content and rationale behind these policies. On the other hand, various ministries and commissions solicit opinions from industry associations or through industry associations during the process of revising policies. This makes the formulation of national policies more reasonable and reflective of industry demands. I think this is also a significant contribution made by our association. 

Today, I would like to thank the three guests for their insights. From the perspectives of industry associations, experts, and representatives from the business community, they have collectively explored the specific practical paths for the high-quality development of the energy electronics industry and some specific measures for the next steps. Thank you very much to the three guests. That's all for today's program. Thank you, everyone.