China’s Polysilicon Policies

Chinese PV industry will transfer from the production orientation to the coexistence of production and consumption with the issue of Chinese supportive policies on solar roof and Golden Sun projects as well as New Energy Development Plan.

SEOUL, SOUTH KOREA (November 16, 2009) - Policies on Chinese polysilicon industry are to stimulate Chinese PV consumption; to support solar cells produced from Chinese polysilicon raw materials to meet domestic demands; and to concern the global market at the same time. According to Dolphin Chen, an analyst in the new energy industry of China Research and Intelligence, they are also to restrict new polysilicon projects in those regions with energy shortage and high electricity prices; to disapprove those polysilicon projects without comprehensive utilization and standard environmental protection; and to encourage the cooperation of polysilicon producers and solar cell producers in the downstream to expand the industry chain. The scale of new polysilicon projects should be larger than 3,000 ton/year; the area should be below 6 hectare/kiloton polysilicon; the solar-grade polysilicon reducing power consumption should be less than 60 kWh/kg; the recycling rates of silicon chloride, chlorine hydride and hydrogen in the reducing tail gas should be no less than 98.5%, 99% and 99% respectively. Polysilicon enterprises are encouraged to realize the joint operation among polysilicon, power plant and chemical factory with various patterns; solar-grade polysilicon technologies are supported to develop to reduce production costs. Polysilicon productivities with the comprehensive power consumption over 200 kWh/kg will be eliminated before 2011.

Chen predicts that the Chinese central government will take measures to control high costs because this remains as the biggest disadvantage of Chinese polysilicon enterprises. For example, it will restrict new polysilicon projects in those regions with energy shortage and high electricity prices. The solar-grade polysilicon reducing power consumption of new polysilicon projects should be less than 60 kWh/kg. Polysilicon productivities with the comprehensive power consumption over 200 kWh/kg will be eliminated before 2011.

The polysilicon projects without comprehensive utilization and standard environmental protection are disapproved. The recycling rates of silicon chloride, chlorine hydride and hydrogen in the reducing tail gas should be no less than 98.5%, 99% and 99% respectively. These measures aim to raise the entry barriers and guarantee the overall competitiveness.

By the first half of 2009, it was expected to be nearly 50 companies constructing, expanding and preparing to construct polysilicon production lines in over 20 provinces such as Sichuan, Henan, Jiangsu and Yunnan in China. The entire construction scale reaches 170,000 tons with the total investment exceeding RMB 100 billion (US$14.64 billion). If these productivities could be all carried out, the total productivity would be over 2 times the annual global demand for polysilicon.

It was estimated that the growth rate of Chinese polysilicon productivity would decrease obviously after the issue of the policy to curb polysilicon productivity at the end of September 2009.

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Source: EXPO Solar

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