Boosting solar technology in China

The Expo in Shanghai is a perfect way of meeting the most important Asian customers, says Udo Ungeheuer from Schott, a German company specialized in glass. China is a profitable market but there is also a great deal of competition, he points out.

"We would be happy if our government were to help German photovoltaic manufacturers more," he says. "You often get the impression that Europe is the world's only free market and anyone can supply it but when Germans want to export we are constrained by certain restrictions. However, we've taken on the fight and I think we will be successful."

Ungeheuer reacts immediately to the name Yingli, the second-biggest solar company in China: "They are one of our customers, at least regarding wafer production. But they are also competitors in the wider field of photovoltaics. Competition if we're talking about the end market."

Baoding has been nicknamed energy valley

Miao Liansheng founded Yingli Green Energy in his hometown Baoding, not far from Shanghai, 12 years ago. The area is now known as "energy valley". However, most of Yingli's production is exported – 60 percent to Germany. Photovoltaics made in China sell for roughly a third of those made in Germany.

Miao Liansheng knows this can attract criticism. "It is very normal," he says. "But dumping allegations have not stopped me from buying German products. This year again, I've ordered machines and raw materials from Germany. My biggest supplier is a German company.

"My business is transparent – concerning state subsidies too. We're private – listed on the New York stock exchange. Our only secret is that Chinese companies are passionate. We keep releasing innovative products. This is how we can reduce our costs and survive."

Chinese solar technology market is too small

Chinese manufacturers do have a big problem, however. Their country might be the biggest world exporter of solar technology but the home market remains very small. Yingli's competitor Suntech is building a huge solar park in South Africa, while Yingli has its eyes on the US market.

"We've found that among the suppliers that we've talked to that Yingli's got the most attractive combination of price and quality and we worked with them on a Rutgers project," explains Sundurance Energies head Al Bucknam.

"They were very supportive, the deliveries were on time, the quality was great and the pricing was really strong, so all the elements came together."

Government measures to boost demand

In Baoding, Ma Xuelu, the director of the Chinese association for renewable energies is optimistic that the home market will grow.

"The government has two new projects: 'Golden Sun' for supporting the production of solar panels and another one for combining the solar energy and construction sectors. The development is going fast. In 2009, the installed capacities produced 200 megawatts – twice the amount of the year before."

Recent media reports have indicated the government wants to launch a program to ensure electricity flowing into the national grid is greener.

Author: Astrid Freyeisen / act
Editor: Disha Uppal